Helping Our Clients Navigate Their Way to Success

News and Views, a publication of Bessner Gallay Kreisman, L.L.P., is a communication platform designed to identify and simplify notable business themes and developments in the arenas of tax, accounting, finance and consulting. For further information about this communiqué, or any of the services available at Bessner Gallay Kreisman, L.L.P., please visit our website at www.bgk.ca.

New Decade - New Premises for
Bessner Gallay Kreisman Offices

The Montreal and Ottawa offices of Bessner Gallay Kreisman are now located at new premises. Strategic firm growth, including a merger, necessitated the moves.

"The two moves - to larger and more convenient locations - were necessary because of our growth as well as our desire to provide pleasant surroundings for our people. It goes without saying that we also wanted our clients to enjoy a most welcoming experience when visiting our new premises, Managing Partner, Louis Ruta.

BGK's Montreal office is now situated at the western gateway to the downtown core and the new Ottawa location greatly facilitates meetings with clients and friends of the firm. The firm’s Green Committee is ensuring the adoption of as many environmentally friendly practices as possible at its new premises.

All contact information for the new offices can be found on the last page of this communiqué.

BGK Unveils Its Own Mergers and Acquisitions Division

Last fall, the firm launched a Mergers & Acquisition division, BGK Corporate Strategies Inc.,
headed by Moses Bendayan, CFA.

"Given the challenges of the business community’s aging population and the need for transition support, BGK is now in an even better position to support owner-managed companies. To that effect, we are thrilled that Moses Bendayan, a mergers and acquisition veteran, has joined our firm. Mr. Bendayan has overseen a multitude of North American transactions over the past ten years and frequently provides business transition workshops to entrepreneurs. BGK is one of the first mid-size accounting firms to offer these services to clients in Quebec and Eastern Ontario. These services are traditionally offered by much larger accounting firms which often only focus on larger transactions leaving smaller businesses to fend for themselves" says Louis Ruta, Managing Partner at BGK.

"I am pleased to have joined such an accomplished group of professionals that share a common vision, providing clients with the highest level of service. This department will provide Quebec and Ontario companies with the level of expertise they require to transition and grow their business. In addition, we will increase the availability of operating and expansion capital to our clients," said Mr. Bendayan, Vice President, M&A/Corporate Finance at BGK.

If you need assistance with selling, purchasing, financing or valuating a business, preparing a transition or
obtaining transaction support, please contact Moses directly at (514) 908-3600 or by e-mail at mosesb@bgk.ca.

Selling your Business

BGK is one of the first accounting firms to recognize the need and deliver a comprehensive solution to aging entrepreneurs. Succession has become a buzzword in the industry with numerous practitioners who provide tax-planning services but few do it in conjunction with actually helping you find buyers and selling your business. Moses Bendayan, appointed as the Vice President of mergers and acquisitions, has over a decade of experience in the field and has developed an effective process for selling mid-size businesses.

Selling an owner operated business is very different from selling a multinational. Though smaller companies tend to have simpler business models, they require more finesse.

Targeting the right buyers can mean the difference between selling a business for top dollar versus a basement bargain sale. Business owners need to ensure that the price paid is fair and the timing and structure of the payment is equally important.

Ideally a business owner should sell his company when industry valuations are high and the company is on an upward trend. Start the process five years before your planned retirement, particularly if your business is doing well.

A structured and well-planned approach to the sales process will ensure success. A company has to be marketed with the same rigor as products are marketed to consumers. Putting a company on paper can be challenging as the financial statements of private companies need to be re-stated to reflect the true economic reality.

Confidentiality is a major concern, because employees, vendors and customers could easily become distracted or uneasy about a possible change of control.

For the business owner, the due diligence stage is by far the most uncomfortable and tedious stage of the process. Honesty is truly the best policy, as surprises can kill a deal.

If you're a business owner and your first instinct is to do it yourself, think again. There is simply too much at stake to let chance play a bigger role than it should.

Moses Bendayan, CFA, offers acquisition and divestiture workshops for BGK clients, their friends and family.
Please do not hesitate to call him if you would like to attend or if you have any additional questions,
he can be reached at (514) 908-3600 or mosesb@bgk.ca.

Changes Impact Those In Financial Difficulty

Last fall, important legislative amendments to both the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act became effective. These changes will impact individuals facing financial difficulties.

Please find below a summary of the significant changes for individuals:

Bankruptcy

The bankruptcy period is maintained at 9 months for a first-time individual bankrupt with low income.
The bankruptcy period is extended to 21 months (12 months in the current legislation) for other first-time bankrupt individuals.
Automatic discharge (without Court hearing of the application) for second-time bankrupt individuals, but:

○ Bankruptcy period extended to 24 months (12 months in the current legislation) for low income individuals.
○ Bankruptcy period extended to 36 months (12 months in the current legislation) for other individuals.

Creditor's Arrangement

Increase maximum allowable debts: rising from $75,000 to $250,000 (excluding principal residence mortgage).
Second chance measures for debtors in default of a previous creditor's arrangement.
Streamlined administrative procedures and simplified agreement procedures for creditors
Improved regime of asset protection for individuals wishing to be protected by the Companies' Creditors Arrangement Act: guaranteed creditors will not be entitled to seize home and automobile assuming payments are made.

The intention of these changes is to make the creditor's arrangement a more convenient alternative and, simultaneously, to make bankruptcy a longer process. These changes should encourage more debtors to make arrangements with creditors.

For more information, please contact: Jean-Francois Senecal, ll.b. at
(514) 908-3600 ext. 3640 or jfsenecal@bgk.ca.

Does Online Networking Work?

Those of you who do not participate in online networking may wonder if it works. For those of us who are avid users, the answer is clear. Facebook (which is used for both social and business networking) and LinkedIn are two examples of online tools, that when used efficiently can be a cost effective method of maintaining relationships with colleagues and business contacts.

Setting up a profile is free and easy. The key to success with online marketing is to set-up as complete a profile as possible. Think of your profile as a reflection of yourself. The same way you would dress appropriately for a business meeting, your profile should reflect your character and provide the reader the relevant information for them to want to buy your product or use your service. Through Outlook (or by searching names) you can send out invitations to your contacts. Keep in mind you are not only connecting the individual, but to their contacts too. Before you know it your connections grow.

There are many reasons to list yourself on these sites, including maintaining relationships with existing contacts, meeting new ones, increasing visibility, pursuing direct sales, posting job openings and find services. Periodically the website sends emails detailing any changes to the profiles of your contacts and suggests new ones that may be of interest to you. So, the more you maintain your profile the more attention you get. As more and more professionals are participating in online networking the sophistication of the sites are improving. There are security features to help you network safely and in the end you choose what information about yourself and your company you want to share, and to whom.

To answer the question if online networking works, I believe it does. Feel free to try it and let me know what you think.

For more information, please contact: Daniel I. Blumer, CA, at (514) 908-3630 or dblumer@bgk.ca.

Putting Out Fires: A BGK Partner Feels the Heat

BGK Partner, Mark Bindman, CA, was the featured cover story of a fall 2009 issue of CA Magazine. This monthly publication reaches chartered accountants across Canada. Below is a reprint of the article by Rosalind Stefanac.

When he's not putting out fires for clients during tax time, Mark Bindman literally feels the heat alongside firefighters in his city. While he doesn't run into burning buildings, as a member of the Pompiers Auxiliaires de Montréal he is among 28 volunteers who provide on-site support services to the Montreal Fire Department during major blazes. "We take care of the firefighters, keep them safe and provide fluid replacement," says Bindman, 54. "Last night's fire was so big and hot we put portable showers out on the street so they could cool themselves off."

Being on call seven days a week means Bindman will occasionally wear his uniform into the office (CA firm Bessner Gallay Kreisman, where he is a partner in charge of quality control and professional standards) after spending an entire night at a fire scene. "I can work off the adrenaline for hours, and most of my clients are amazed by what I do," he says. Given that he spends about 30 hours a week on his "fire passion," Bindman says his partners are supportive too. "Some weeks I'll get called to a scene two or three times, but I don't respond to [fire] calls during the workday."

A self-professed fire buff, Bindman started chasing fire trucks in his early 20s because "the thrill, sights and smell of it all really got to me." Since then he has acquired an impressive collection of fire paraphernalia, including eight full-size fire hydrants, a dozen extinguishers, hundreds of fire department T-shirts and thousands of photos of fire stations across North America and the Caribbean. "My one dream is to buy my own fire truck but I really don't know where I'd store it."

Still, Bindman has no intention of giving up his day job. "I took a few fire-fighting courses and know how to cut some-one out of a car using basic tools, but this is a hobby I've turned into a community service," he says. In fact, being a fire buff CA has its advantages. "During tax season when I'm particularly stressed, I'll spend 15 minutes going through my collection and it calms me down and keeps me going."

Tips for Running a Successful Board Meeting

What is the most enjoyable aspect of being a board member? It’s building new relationships and doing something good. How about the least enjoyable? Attending ineffective board meetings. The following steps will help ensure that your meetings are constructive and your board members are productive.

Select a strong leader

Strong leadership skills and long-term vision by the chair were rated as essential by those surveyed to achieve effective board meetings and to build a strong, cohesive board.

Prepare an agenda

Make sure that everyone knows what you hope to accomplish at the meeting, as well as the time frame you're hoping to achieve. Distribute the agenda and other reading materials in advance so that board members can come prepared.

Set up the meeting room appropriately

The meeting table should be set up for maximum interaction. Greet members warmly upon arrival and be sure to introduce and welcome new members or other attendees.

Keep the meeting on track

Don't discourage debate but make sure it doesn’t get out of hand. Discussions - even heated ones - sometimes bring important facts to light. But no one should feel intimidated or ridiculed for an opinion.

Encourage participation
Invite questions and alternative solutions to problems.

Recap and clarify

Repeat important points discussed in the meeting and clarify what the next steps are - what will be done, when and by whom. Mail meeting minutes to all board members in a timely fashion.

Thank members profusely

Board members should be thanked - of course - for their monetary contributions and fundraising efforts but should also be recognized for their donations of time and expertise. A little appreciation goes a long way.

For more information, please contact: Michael McCrann, CA, at (613) 836-8228 or mmccrann@bgk.ca

Team Approach to Planning Success

Do you ever get that empty feeling in your stomach that you may have missed something with your Estate Planning? Do you hate losing opportunities to make money?

Most people have lawyers, accountants, investment advisors and insurance agents, however rarely are they getting what they need. These advisors may be good in their respective fields, but you may not be gaining maximum value from their work. Most of the time these advisors are working in isolation with you only. Why?

Integrated planning provides our clients with exceptional value and saved some of them millions of dollars. How can this be accomplished? We have created a process where all your professionals are asked to be in joint meetings with sole purpose to work on your plan. Your team is created from your existing advisory members and other specialists may be invited to complete necessary work which your existing advisors may not have expertise necessary to complete your plan.

One of your advisors has to take on a leading role to create the team and keep the process moving along. This method is extremely efficient as all advisors are working from the same “play book” and it eliminates wasted time as well as massive confusion. You will be amazed what will get accomplished even in a one-hour meeting.

Please be certain that you work with specialists as it is a must when looking for best results. Your team will design optimal solutions and provide you with solutions that are built on sound principles.

Be assured that the best investment in 2010 you can make is to have a teamwork to complete your plan. Do not leave things to chance.

Clients have been provided with these kinds of benefits:

♦ Saved millions of tax dollars.
♦ Professional services corporation gave one doctor $800,000 tax free dollars this year.
♦ Savings in insurance premium dollars.
♦ Created continuity for the business.
♦ Settled fears of key employees.
♦ Clients received piece of mind.

Our firm has had the pleasure of working with Bessner Gallay Kreisman over a number of years where we invited them to assist our clients with complex tax planning and we have also assisted them with insurance audits for their clients.

“If you don’t design your own life plan, chances are you’ll fall into someone’s plan. And guess what they may have planned for you? Not much."

- John Rohn

For more information, please contact: Milan Topolovec, BA, RHU, CLU, TEP, President & CEO – TK Group at
(613) 728-7030 ext. 223 or by e-mail at milan@thetkgroup.com. You can also visit www.thetkgroup.com.

Bessner Gallay Kreisman, LLP would like to thank Mr. Topolovec for his contribution to this issue of News and Views.

BGK Briefings

We are currently seeking an experienced Audit Manager for our Ottawa office.

If you know of a qualified candidate, please share the information below. Thank you.

Title: Audit Manager for Ottawa Office

Job Description: We are looking for someone with 5 or more years of recent accounting firm experience. As the successful candidate, you exhibit technical proficiency and the ability to manage and complete engagements.

Roles and Responsibilities:

Coordinate various planning phases of the engagement.
Monitor engagements to ensure work is on schedule.
Generate budgets.
Review reports, financial statements and tax returns.
Establish primary working relationship with clients.
Actively solicit prospective new clients.
Provide overall leadership, supervision, training and performance feedback to staff.

Qualifications:

The ideal candidate will have a CA designation and possess at least two years of supervising and managing personnel.
Experience with the various software including Tax Prep, DT Max, Caseware and Caseview
Proficiency in Excel.
Strong organizational and leadership skills.
Ability to work in a fast-paced and deadline-oriented environment.
Ability to exercise sound judgment.

Salary is commensurate with experience.

Please forward your resume to mmccrann@bgk.ca. We thank all candidates for their interest and will only contact those that we are interested in pursuing.

Second Thoughts

"Small opportunities are often the beginning of great enterprises."

Demosthenes

Bessner Gallay Kreisman L.L.P	4150 St. Catherine Street West, Suite 600, Montreal, Quebec H3Z 2Y5 Tel: (514) 908-3600 340 March Road, Suite 400, Kanata, Ontario K2K 2E4 Tel: (613) 836-8228
For more information visit:	www.bgk.ca

News & Views from BGK is sent to clients and friends of our firm on a bi-monthly basis. The technical information in this newsletter is necessarily brief. No final conclusion on these topics should be drawn without further review by and consultation with our professionals. Subject material is presented for general educational purposes only. For comments and questions regarding this newsletter, please contact Clifford Herer at (514) 908-3610 or herer@bgk.ca or Michael McCrann at (613) 836-8228 or mmccrann@bgk.ca.