LDB client case study: Camberwell Electrics

LDB recently assisted Camberwell Electrics throughout a succession planning process, helped to navigate complex negotiations, income tax requirements and a change in corporate structure.

Subsequently, our role has expanded with the business to manage growth, assist with financial management and provide broad-based business advisory support.

To learn more about how we’ve assisted this client across multiple facets of their business, read on.

A bit about the client

Established in 1952, Camberwell Electrics is one of Victoria’s oldest electrical retailers.

They offer quality products, including white goods, air conditioning systems and audio-visual equipment, combined with exceptional customer service.

Over the years, LDB has assisted Camberwell Electrics in several ways.

We have helped with independent company audits, whilst also providing tax, superannuation and wealth management advice to stakeholders Hans and Felicity Vanderstadt.

More recently, we were asked to assist with the purchase of the remaining business shareholding after one of the senior partners retired.

How we helped Camberwell Electrics

As part of the succession planning process, we organised detailed discussions with key stakeholders, and their legal and accounting advisers.

This involved sitting down with Hans and Felicity to ascertain the value of the business, in both qualitative and quantitative aspects, and to establish an appropriate price and terms.

We assessed the income tax impact of the proposed transactions and reviewed the impact of employee entitlements for directors.

LDB also introduced appropriate legal counsel to assist with the negotiations. We facilitated discussions with the lawyers and accountants of the parties involved.

As part of our advisory role, we also liaised with the bankers to ensure a smooth transition. This step involved taking care of things like the release of the departing director’s guarantees, releasing the company from audit obligations and developing a formal budget.

What’s more, LDB arranged the transfer of shares, director resignations and associated ASIC documentation.

Lastly, our role involved reviewing the current corporate structure to ensure the stake was acquired with asset protection and future tax planning in mind, with a further view towards future Capital Gains Tax implications.

Our results

Overall, we were able to assist Camberwell Electrics through a challenging transition, and as a result we received some great feedback from the client.

LDB are now also supporting Camberwell Electrics in an advisory capacity, along with providing traditional accounting and compliance support.

We are working to:

• Develop a monthly reporting platform
• Identify key metrics and thresholds
• Review variances and trends, both above and below the line, comparing to both budget and prior year
• Organise bi-monthly management meetings
• Develop reporting dashboards to enable analysis of operations at the executive level
• Review current and proposed accounting systems
• Discuss non-financial reporting metrics in support of the business
• Develop a business plan
• Optimise tax strategies, now that the business is solely owned
• Introduce relationships in complementary industries to further marketing efforts and generate sales
• Recommend systems, documentation and procedures to further support the business.

The client’s feedback

“Over the past twelve months, Camberwell Electrics has been through what is often a very trying time for many businesses, with a senior partner retiring after over twelve years in the business and no formal succession plan.

“With the support of Daniel Dubois and the team at LDB, we were able to navigate a difficult and drawn-out process to bring it to finalisation in July last year. Now, six months on, we have been able to focus on what we are good at – selling appliances and air conditioning, with the business support of LDB.”

– Hans and Felicity Vanderstadt, Camberwell Electrics.

Do you need financial assistance with your business?

Working this closely with a business provides a great opportunity to pass on the knowledge LDB has gained working across a wide number of businesses and sectors.

If you require assistance in negotiating a business restructure, acquisition or disposal, we can advise on all commercial and taxation aspects.

Where this leads to further ongoing support, LDB has the broad-based experience to help you make the most of every opportunity.

To find out more, phone (03) 9875 2900 or fill in the contact form below.