Practice Financial Management

Buy In’s for new Dr’s and

overall Succession and
Growth Planning
Presented by Wm O’Connor, CPA Pathway Financial Mgmt Advisors LLC
Practice Financial Management
How can you sell your
practice (for $1 million) and
NOT pay taxes? With good
advanced planning!
Presented by Wm O’Connor, CPA –pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Dental Succession Planning
You can setup a Defined
Benefit Pension Plan & make
LARGE contributions to your
retirement plan—tax
deductible
Presented by Wm O’Connor, CPA - pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Dental Succession Planning
AND we DO NOT sell those
plans! HA. We are CPA’s. Your
advisors. We explain and
analyze– slowly & surely
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
 Dental Succession Planning
What’s the key- start early. It
takes at least 5 years-new
dentist(s) buy in two+ phases,
3-6 years apart
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Dental Succession Planning
Here’s how- “Selling” Dr. sells
40% of practice. “Buying” Dr.
obtains loan & pays “Seller”
over 5 years.
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
 Dental Succession Planning
So, Selling Dr. receives cash-she or
he uses that cash to establish a
new Pension Plan & she/he puts
$140,000, per year into that DB
Pension Plan—deductibly.
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
 Dental Succession Planning
Now the second stage—it’s 5
years later “Buying” Dr. has paid
off the first practice purch note &
they are ready to purchase the
remaining 60%-- how do we do
that without losing 46% to tax?
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Dental Succession Planning
Here’s how- “selling” Dr. can terminate
their DB Pension Plan the year they sell
the final 60%. That creates a “final
funding obligation”—to put 5 years
worth of pension contrib’s into their
Plan- deductibly.
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Dental Succession Planning
So, “Selling” dentist has a large gain on
sale of the 60% (sounds like a tax bill
coming) BUT they have a LARGE
PENSION contribution that offsets the
gain on the sale– Sale $ end up in Dr.’s
Pension Plan—where they grow tax
deferred.
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
 Dental Succession Planning
Please feel free to email Bill O’Connor,
CPA at pathwaykc@gmail.com OR call us
at 816-200-2071. We are located on the
Plaza, @ www.pathwaykc.com-- we like
explaining how things work-we’ve been
doing that since 1986!
Presented by Wm O’Connor, CPA- pathwaykc@gmail.com
Pathway Financial Mgmt Advisors LLC
Buy Insurance from Chad!!!

I free poodle with every purchase