SUCCESSION PLANNING SERVICES

Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next. At D&D, our succession planning services offer a proven framework for helping you develop a practical succession plan that is customized to your business, goals and values. Once we gather all pertinent information regarding your business, plans and wishes, we construct your individualized plan and address issues such as: the minimization of taxes, company leadership, equity and fairness and family control. The comprehensive succession plan will provide recommendations regarding:

• Fundamental restructuring of the business
• Choice of type of business entity
• Tax consequences to the retiree, business and successor
• Tax and retirement projections
• Business valuations

COST SEGREGATION STUDIES

A cost segregation study identifies building assets that can be depreciated at an accelerated rate using shorter depreciable lives. These assets may be part of newly constructed buildings or existing buildings that have been purchased or renovated in the past. Faster depreciation translates into significant tax savings and improved cash flows.

Most taxpayers depreciate real property over 39 years. However, using cost segregation, our professional staff will reallocate appropriate assets by 5, 7 or 15 year lives. Several types of construction property can qualify for accelerated depreciation, including: floor coverings, cabinetry, specialty electrical, HVAC equipment and many others. Our cost segregation studies have saved our clients tax dollars on:

• Office buildings
• Retail store
• Manufacturing plants
• Distribution warehouses
• Auto dealerships
• Restaurants
• Medical facilities
• Apartment complexes
• High tech facilities
• Many others

The professionals at D&D use an engineering approach in performing each individualized study. Our trained consultants identify those assets that can be segregated into shorter depreciable lives by closely following guidelines established by the Internal Revenue Service. In general, our cost segregation process includes:

A comprehensive review by our consultants of your construction invoices and building plans to maximize the allocation of 5, 7 and 15 year assets
An on-site inspection of the building to accumulate additional facts in support of the study, including photos of the exterior and interior of the facility
Appropriate allocation of all indirect construction costs which are easily overlooked
A written report supporting our findings and cost allocations

Based on our experience, we can provide an accurate, upfront estimate of the net present value (NPV) of the tax savings from conducting a cost segregation study. Generally, the NPV is ten to twenty times our fees; however, this will vary depending on the property. Our professionals will evaluate your project and provide an honest assessment of whether or not a study is worthwhile before any work is commenced.

INTERNAL AUDIT OUTSOURCING OR CO-SOURCING

For assurance that you are addressing all risks in your financial and operational processes, D&D's internal audit services include: full outsourcing of internal audit, co-sourcing with the existing internal audit function, internal audit implementation and review, internal control reviews, operational audits and quality assurance reviews. These services can assist you in assessing your control environment and your ongoing compliance plan, complement your existing independent audit relationships and enhance the overall quality of your corporate governance.

STRATEGIC PLANNING AND OPERATIONAL REVIEW

D&D's strategic planning and operational review process starts with a general business review, consisting of a comprehensive analysis of your business and its environment. Our objective review provides a clear picture of the marketplace and your current role in it. The review will generally take place at your offices through interviews with key personnel, analysis of financial data and observations and will cover the following items:

• Your organization's history
• Your current objectives
• Staffing and reporting
• Operations and quality control
• Internal controls and major transaction cycles
• Sales and overall financial history
• Customer review
• Competitive review

Once we accumulate all of the pertinent data, our professionals will help develop a mission and define short-term and long-range objectives. We then will work with management to design strategies that describe how to accomplish the stated objectives and a timetable for doing so. Measurement and reporting systems will also be created that assign responsibility and accountability.

At the conclusion of our study, we will provide management with a detailed written report summarizing our findings and conclusions, and we will follow-up to ensure that the plan is being implemented in accordance with the original blueprint. The benefits of such a study include: increased efficiency and morale; expedition of billing, payment and job delivery; improved customer satisfaction; the highlighting of operational areas that need improvement; upgrading computer systems; implementation of benchmarking data; formalization of employee review and evaluation processes and many others. D&D also performs customized variations of the operational review which are individually designed to address your specific needs.

DUE DILIGENCE

All business transactions contain elements of risk. D&D can objectively review and analyze information to determine if representations made by another party are accurate. In doing so, we not only focus on the relevant tax and accounting issues, but also look at other critical areas that could affect a transaction. Our general due diligence procedures include:

• Identification of areas of potential risk
• Assessment of quality of presented financial data
• Assessment of current management
• Evaluation of systems and procedures
• Identification of strengths and weaknesses
• Provision of valuation services
• Evaluate trends and perform comparative industry benchmarking
• Projections and sensitivity analyses

Whether you are negotiating an acquisition, entering into a joint venture, or extending credit to a borrower, we can provide you with the documentation and assurance you need to make a well-informed decision.

TRANSACTIONAL SERVICES

There are many complicated issues and tough decisions involved when considering a merger or acquisition, especially in today's economic environment. Tax, accounting and business issues can often make or break a merger or acquisition deal. Having a business partner that is well organized and knowledgeable can increase your chances of a successful and seamless transaction. We can assist you in all aspects of such a transaction, including:

• Analysis of tax, accounting and management issues and consequences
• Assistance with the transaction structure and deal negotiation
• Communication with attorneys and other parties on your behalf
• Performance of comprehensive financial analysis and projections
• Identification of alternative financing approaches
• Performance of due diligence
• Assurance that you are making an informed decision

Our professionals provide advice throughout the entire process, providing you with the information you need to make the most advantageous decisions. We are also there to listen and confirm that you are making the best decision for the future of your business.

CFO/CONTROLLER OUTSOURCING

Your company's competitive edge and margin of success depend quite substantially on the management of your financial operations. If your CFO and higher-level financial functions are pulling key people away from your core business, or are simply not being handled well, we have an accounting outsourcing function that will assist you.

Our accounting outsourcing professionals offer CFO/Controller services to help give your company immediate access to top-level financial professionals with the experience and financial acumen necessary to achieve your goals. Our professionals can work with your management team as consultants, as your complete finance department, or on a project basis.

Our services focus on:

• Financial closing and consolidation
• Strategic planning and budgeting and forecasting
• Performance metrics and management
• Sourcing and procurement

Our services have historically produced measurable benefits to our clients such as:

• Reduced time to close the books each period
• Improved quality, accuracy and timeliness of financial information
• Elimination of unnecessary and/or manual activities
• Increased ability to make business decisions with actual data
• Decreased cost of the accounting and finance function
• Transparency for internal and external reporting
• Reduced accounting errors

FIXED ASSET STUDY

A fixed asset study identifies asset costs that are not properly allocated and reclassifies them, allowing you to accelerate depreciation expense and "catch up" deductions in the current year. This extensive study will provide your business with a retroactive review of capital assets placed in service after January 1, 1987. Assets are classified based on recent Internal Revenue Service defined tax classes and current case law, usually resulting in larger tax deductions and increased cash flow.

Our tax professionals will incorporate real estate planning strategies and will work with engineering resources to ensure maximum benefits to your organization. D&D will provide you with a complete set of project documentation that supports the assets to be reclassified. In addition, we will prepare a detailed accounting of assets that enables write-offs upon disposition and a guide for capitalizing future asset additions. A completed Form 3115 with the "catch up" depreciation amount will also be provided.