Case Study 1: A Petroleum Business

Two brothers in New York own a series of petroleum companies including a gas import company, a petroleum delivery trucking company, and 22 gas stations where they own the land, buildings, and businesses, all in over 25 different business entities. In 2010 the brothers retained Eric Donner as their financial and business advisor to develop and implement a plan which integrated their estate planning needs, asset protection, and tax planning strategies.


The overall strategy included three main strategies;


➢Through one of Eric’s actuarial firms, they set up an age-weighted Profit Sharing Plan so they can received higher tax-deductible Contributions


➢Eric introduced an advanced estate planning attorney and they established several irrevocable family trusts and gifted a percentage of numerous companies to their family trusts at a discount for gift tax purposes.


➢In Q4 2018 the brothers received an LOI to sell their petroleum companies, except for the trucking business for $42 million. They retained Eric Donner as part of a new Business Financial Planning engagement with an anticipated Q 2 second 2019 closing of their deal. They plan on implementing a major 1031 Tax-Free exchange strategy for about $30m of the sale price business and leverage the real estate up to $100 million of real estate in 2020.

Case Study 2: A Medical Group of Physicians


A medical practice located in South Florida was a three office Physician group generating 95% of their revenue ($32m) from one major health insurance company. The ownership group (3 Dr/owners each w 1/3 ownership interest) was comprised of Dr.John-75 and Dr.Anne-62 (married) and Dr. Michael-70. There was a fourth doctor who recently withdrew from the group after 20 years on an adversarial basis to begin his own practice. This began the chaos. Although the business had been generating $6-8m of net profits annually, They had been experiencing serious cash flow issues for several years due to changes in Medicare reimbursement policy and coding. Turmoil was affecting the business and the doctors personally and they needed help. In 2010 Eric was hired by Dr.John and Dr. Anne as their personal financial advisor. Having $10m invested with three different “brokers” they were not receiving any financial advice or a financial plan. Eric created their Living Financial Roadmap and currently invests all $10m, replacing the brokers and workhouses. In 2017 the company retained Eric Donner on a monthly retainer to assist with their business planning issues and develop a future exit plan as each of the owners had different goals and timeframes.


Below is a brief summary of the engagement highlights:


➢Due to the owners' ages and cash flow concerns, they decided to entertain buyer offers to see if their practice could be sold. After receiving several LOIs, a partial sale strategy emerged since Dr.Anne still wanted to work. As a direct result of this process, Dr. Michal age 70 decided to retire and sold his 1/3 interest for $2m.

➢As part of Dr.Michaels 1/3 sale to the 100% owner of a much larger medical group ($40m value), a partnership and potential merger strategy evolved for future growth and development for a much larger sale in 3-5 years.


➢Dr.John age 75 was already semi-retired and planned on retiring while during this process he got cancer and within 6 months of his diagnosis passed away. The business exit planning process was put on hold and end-of-life estate and business plans were implemented.

➢Dr.Anne, now owning 2/3 ($4m value) of the company with the new 1/3 owner as her partner, merged her 2/3 into the larger medical group in exchange for 10% ownership and became the company’s Medical Director.