BKD National Construction & Real Estate Group has the necessary knowledge in bonding, financing, tax planning and financial management to help your firm. Our experts work with companies to help improve their bottom line and increase cash flow.
Construction companies can benefit from our wide range of offerings, including tax services, succession planning, strategic planning, valuations and risk management. Our advisors can help your business improve performance, gain control over internal finances and overcome challenges to help meet your strategic goals.
We also work with real estate investors, commercial and residential developers, brokers, agencies and property owner associations. Our real estate team has expertise in cost segregation services, operations improvement, contracts and negotiations, tax credits, financing and internal controls.
In addition, our advisors can assist architecture and engineering firms in implementing critical strategies and developing tax solutions that align with your long-range plans. From audits and corporate governance to strategic planning and human capital issues, we can help you meet your goals.
Published in Construction Business Owner
Written by Angela Morelock, Partner
In this article, Angela Morelock of BKD’s Forensics & Valuation Services division says many construction companies and contractors overlook the possibility that a trusted company employee could be committing fraud.
- What Contractors & Real Estate Developers Need to Know Regarding the Final Tangible Property Regulations 12/3/2013
- Ethics Hotlines: A Key Part of Your Risk Avoidance Strategy 11/13/2013
- Year-End Financial Reporting Update 11/5/2013
- Final IRS Tangible Property Regulations: How Will They Affect Your Business? 10/16/2013
- Health Care Reform Insurance Overview 8/8/2013
- Cross-Border Tax Issues Involving Foreign Construction Projects 6/13/2013
- 179D Tax Incentives for Architecture & Engineering Firms 6/4/2013
- Fraud Prevention Strategies: A Forensic Accountant’s Top 20 List 5/21/2013
- REITs – Foreclosure Sales & Other Tax Updates 2/28/2013
- Fiscal Cliff Averted: What’s Next for Manufacturers? 1/17/2013
- Multiemployer Pension Plans – Preparation for New Disclosures 12/6/2012
- Active M&A Market Presents Opportunities & Risk 10/2013
- Feedback Received on FASB’s Credit Impairment Model 10/2013
- Proposed FASB Insurance Model – It’s Not Just for Insurance Companies 10/2013
- New FASB Revenue Recognition Standard Coming Soon 10/2013
- Worker Classification Could Drive Unexpected Penalties Under the Affordable Care Act 10/2013
- Open Book Management: What, Why & Who? 10/2013
- Private Company Reporting Developments 9/2013
- Basel III Impact on the Construction and Real Estate Industry 9/2013
- Alert – Final Repair Regulations Have Widespread Impact – Tax Accounting Method Changes Will Be Required 9/2013
- Using Internal Auditors’ Work Requires Extra Steps 9/2013
- COSO’s 2013 Internal Control Framework in Depth 9/2013
Reducing your tax exposure makes good business sense. Our tax consultants are skilled in delivering creative tax strategies designed to take advantage of benefits within the tax law. You need comprehensive tax planning while identifying potential overpayments. Experience how our insight can help you:
- Develop federal and state tax strategies designed to lower or defer taxes
- Anticipate and resolve controversies with taxing authorities
- Select a “tax-aware” organizational structure that matching your strategic plan
- Identify potential refund opportunities through reverse sales tax audits and sales and property tax reviews
- Identify opportunities to reduce unemployment and payroll taxes
- Identify and assist with incentive programs, including tax credits and training reimbursements
- Conduct real estate cost segregation studies designed to generate significant cash-flow savings
You want careful solutions to help improve performance, gain control over finances and overcome challenges. Experience attention with:
- Tax Planning and Preparation. Virtually every transaction will have tax implications. From simple to complex, we can examine the pros and cons of a real estate transaction and help you structure it to mitigate your taxes and liability.
- Tax-deferred Exchanges. Swapping real estate rather than buying and selling property can generate attractive tax benefits. Our consultants can assist you with the complexities of like-kind exchanges to help you defer taxes on the monetary gain and apply the savings toward the new property.
- Tax Credits. Some transactions will qualify for state and federal tax credits. You can benefit from our experience with low-income housing credits, enterprise zone credits and other potential tax credits.
- Cost Segregation Services. Real estate cost segregation can generate cash tax savings by identifying shorter-lived assets qualifying for 5-, 7- or 15-year write-off periods. These costs are typically imbedded in a building’s construction or acquisitions costs and depreciated over 30 years. BKD uses an engineering and cost-estimating approach recognized by the Internal Revenue Services and by the courts to identify assets to reclassify for shorter depreciation lives. The result can lower the after-tax cost of owning real estate.
Experience how BKD’s expertise and knowledge of best industry practices can help your company develop its vision. We can help you:
- Facilitate strategic planning retreats that examine the competition, assess strengths and weaknesses, identify opportunities and threats and develop strategic alternatives to reach goals
- Prepare a business plan to implement your strategic plan
- Prepare a capital financing plan for major projects, working capital, startup costs, acquisitions and new product development
- Evaluate various financing alternatives
- Negotiate financing terms and assess bonding company alternatives
- Use the resources of BKD Corporate Finance, LLC for private debt and equity placements, acquisitions, sales, mergers and initial public offerings
Our merger and acquisition consultants can guide you through the difficult process of strategy, synergy, valuation, financing, negotiation and integration. Experience ideas that can help you:
- Develop an appropriate acquisition or divestiture strategy
- Conduct financial and operational due diligence
- Determine how much a company is worth
- Evaluate tax and accounting implications
- Evaluate financing alternatives
- Structure transactions and negotiate terms
- Develop and implement pre- and post-integration plans
Buying, selling, refinancing and trading are the daily activities that contribute to the real estate market’s constant state of flux. Transactions like these require complex financial analyses, flawless timing and extensive knowledge about the rules and regulations governing them. We can help with:
- Project Completion Support. No investment is without risk, especially real estate. Proper preparation and quality assistance help you make the right decisions at the right time, reduce risks and enhance returns. BKD's real estate professionals guide you through the entire investment process—providing you with the resources to effectively and efficiently “close the deal.”
- Contracts & Negotiations. We can review your partnership agreements, assist with negotiations and analyze the tax considerations that may affect personal and corporate tax returns.
You require valuations that are thorough, comply with accepted standards and can help mitigate your exposure to legal repercussions. BKD's credentialed valuation consultants are familiar with the appropriate valuation methodologies for construction companies. Depending on the purpose of the valuation and your objectives, a BKD valuation can result in:
- Favorable tax savings as a result of proper gift and succession planning
- Improved business operations as a result of analysis and consultation
- Relief from worry about the value of the company with respect to buy/sell agreements
- Enhanced knowledge of your industry through market analysis
- The successful sale or purchase of a business
- The settlement of a shareholder dispute
Competition requires you to manage your business as efficiently as possible to grow market share. With BKD you will experience attention to detail. We can help you with:
- Operations Improvement. In today's highly competitive market, productivity and efficiency contribute as much to business success as the quality and quantity of deals closed. Profits erode quickly because of poor business processes. Whether your business is just starting up or has been around for years, BKD's real estate professionals help you improve your business processes for efficiency and quality through operational reviews, lease reviews and strategic/business planning advisory solutions.
- Choice-of-entity Planning. When you form a new business, we can help you determine the most advantageous structure. C corporation, S corporation, limited liability company, limited liability partnership, partnership and sole proprietorship structures, all have different tax and liability issues that must be considered in structuring your business.
Today's thriving companies in the construction and real estate industry realize the necessity of managing business risk. By meeting compliance regulations and improving corporate governance and data security, you can help your organization gain stakeholder confidence and improve structural integrity.
BKD IT Risk Services (ITRS), a division of BKD, LLP, helps organizations gain trust and confidence with solutions designed to enhance and secure your organization’s structure. We have developed a risk management methodology tailored to your industry needs. Our services include:
- Corporate governance
- Information security
- Internal audit
- IT reviews
- SSAE 16 & SOC 1, 2 & 3 examinations
- Risk assessments
- Sarbanes-Oxley compliance
- Penetration testing
- Section 404
- Social engineering
- Business continuity planning
BKD ITRS combines the expertise of specialized risk management consultants from BKD's office locations into a dedicated resource team. Our team is focused on consistently delivering tested methodologies to meet your objectives.
You can benefit from our many years of experience evaluating and recommending software for the construction and real estate industries. BKD Technologies can help you select a computer system, evaluate real estate accounting and property management software, assist with systems implementation, train your staff and provide ongoing software support.
Planning for the management and ownership succession is a complicated process that must take into account numerous factors including tax effects of alternative plans, gifting options and the structure and financing of buy/sell agreements. These issues must be balanced with your personal objectives and family expectations and obligations.
BKD's approach to business succession is a comprehensive plan for “taking care of business” throughout the life cycle of your company. The cycle mirrors the business cycle: From start-up to growth to maturity, our approach can help plan the evolution and growth of your company. Here are some of the ways we can help you with succession planning:
- Develop a contingency plan to cover problems resulting from an untimely death or disability, including management succession planning
- Develop a tax-advantaged estate plan
- Analyze various gifting options
- Analyze the financial effect of various sale transactions on your business
- Project the income needed for you to enjoy a comfortable retirement and develop a plan to accumulate those funds
- Develop a plan for managing your exit strategy
WealthPlan is BKD's comprehensive approach to growing, preserving and protecting the successful business owner's wealth. BKD CPAs are experienced in providing the tax, retirement, estate and personal financial planning aspects of WealthPlan. In addition, the registered investment specialists of BKD Investment Advisors, LLC can help you plan and implement an investment strategy that meets your goals and advise you on your insurance coverage. Ask your advisor for more information about the following WealthPlan services:
- Investment advice—present strategies to grow your money
- Insurance solutions—evaluate your insurance coverage
- Income tax planning—project consequences of wealth-planning tax tactics
- Retirement services—project your future income needs and expenses
- Estate planning—craft a plan for transferring your wealth
- Personal wealth strategies—present strategies for protecting your assets and consolidating debt
“When we first started in business, I felt that BKD was an overkill for our needs and too expensive. Over the years, as we and our needs have grown, the firm has become an invaluable member of our team.
The business has now bloomed and is diversifying and with BKD’s coaching, there are several side line businesses that are starting their growth. Even in the estate planning and financial end of personal life, these guys have played a major role. Looking back, it has been a great relationship and I anticipate that if our doors ever close, some of their staff will be the last ones out.”
— Larkin Ritter,
Scott & Ritter Inc.
Bowling Green, Kentucky
“BKD has been my CPA firm since I first started my business in 1989. As we have grown to the fifth largest union fire sprinkler contractor in the United States, with four offices in the Midwest, I have relied on BKD to advise me on how best to manage my balance sheet and to provide guidance on how to continue being profitable.
In addition, BKD continues to provide me with solid team members. In particular, my current BKD partner is someone I would consider a mentor to me in the construction field. Certainly, I appreciate his guidance, but I also find him to be very accessible and highly responsive.
Over the years, I have surrounded myself with a strong team of advisors, including my bank, my bonding company, my insurance company and, of course, BKD as my CPA firm. There is much synergy between these four firms as they each trust the other because of the credibility and reputation they have built in their individual marketplaces.
I honestly believe Dalmatian Fire would not have been as successful without BKD and the strong, construction industry focused partners and managers who are part of our team.”
— Mr. Richard Ackley,
Dalmatian Fire, Inc.
“The business of real estate becomes complex with historic tax credits, tax abatements, TIFs and environmental credits, so we truly lean on BKD’s consultants for their depth of knowledge. The firm’s real estate team has the expertise to help our company reach its goals, and there is comfort knowing we can depend on BKD to help us look smart and grow wisely.
The lending environment has changed, and every deal is being heavily scrutinized, so we need BKD’s expertise more than ever before. Now, I’m actually taking my BKD real estate partner with me into the bank for deals. It’s one example of how the firm consistently delivers unmatched client service.
As we have entered into a more difficult real estate environment, I’m thankful for the long-term relationship our company has with BKD. We trust the partners and the staff. They are dependable and accurate, and their exceptional service gives our business a competitive advantage in the market.”
Miller Commerce LLC
“In the past, we’d had our compliance work split between two firms, and I wanted to get it all under one umbrella. We felt we could get that work done, with good advice, from BKD, and we could get that service at a reasonable price. It’s a good relationship—people are accessible, they’re friendly to do business with, and I get answers back in a reasonable amount of time.
We expect a high level of service and competent advice, and we’ve always gotten that from BKD. Beyond the basics, we’re looking for a firm that suggests ideas. What’s a better way to run our business? Are there tax planning issues? Are there things on the operational side or on the balance sheet we should be looking at? Look at my whole business and offer some ideas, and eventually we’ll hit one that makes a lot of sense. We found BKD to provide a high level of service and people that will present ideas on how to better run our business.
HOK is like a lot of companies: We’re too big to be small and too small to be big. We need our outside advisors to be constantly giving us observations, thoughts and comments about how we’re running our business, and that’s what we’re getting from BKD.”
— Timothy Tynan,
Senior Vice President
St. Louis, Missouri
“We rely on BKD’s technical expertise for audit and tax services, and I feel confident in their advisors’ ability to alert us about issues on the horizon that may affect our engineering business. The BKD team is responsive, and the partners go out of their way to help. BKD invested the time necessary to understand Terracon and used the knowledge they gained to better serve our firm.
I appreciate BKD’s ongoing communication with our company, not only during audit and tax time, but throughout the year. When needs arise, BKD responds to our calls and offers immediate assistance. In one instance, we needed to present a balance sheet on a critical deadline. BKD team members went out of their way to help us compile accurate financial information in a timely manner.”
— David R. Gaboury, Chief Executive Officer