Case Studies

Client: Family Owned Business
Challenges: Develop a succession plan that appeals to and addresses the needs of the older generation, the younger generation and external creditors
Grassi Solution: We created a structure to transfer the business to the younger generation without cash outlay. Our team eliminated the personal guaranties of the older generations and provided the credit security required by corporate creditors.
Result: Grassi & Co. successfully transferred operations to the younger generation, while releasing the older generation from credit guaranties. The family, who had felt pressures before retaining our services, was completely satisfied with the outcome, which avoided business interruptions and inflicted no damage to family relationships—a common peril in transferring family-owned businesses. 

Client: Construction Contractor
Challenges: Company couldn’t obtain proper financing, encountered cash flow problems
Grassi Solution: Our experts cleaned up their financial statements, using an industry-acceptable format. We resolved cash flow problems and helped them obtain a credit line.
Result: We helped the client transition from a struggling contractor with marginal net worth to a successful and growing company.

Client: Contractor
Challenges: Client had no viable exit strategy. A succession plan would bankrupt the company, and the client struggled with alternatives.
Grassi Solution: We tailored a comprehensive plan, including an S-Corp employee stock ownership plan (ESOP), along with deferred compensation arrangements. Our experts structured the plan to provide a comfort level to both their bank and surety.
Result: The clients paid themselves—in their buyout and deferred compensation—the same amount they would have paid the government (taxes) and their employees (profit sharing) if they had ignored the issue. The client firm now enjoys the advantage of operating in a tax-free environment, which is the equivalent of eliminating 40% of their overhead (taxes).

Client: Architecture & Engineering Firm
Challenges: Client was not getting the proper information from the field. Work was not being scheduled properly, and the company was not looking at profitability and cash flow regularly.
Grassi Solution: We performed an operational review.
Result: Our experts ensured the company was reconciling their accounting information, and we installed timely reporting measures. We helped the client review collections and implemented procedures to reduce collection time. We helped implement incentive compensation programs and increased their profitability. We enabled the client to make smart, informed business decisions to improve operations.

Client: Distribution Company
Challenges: Unique payroll/billing system requirement. All the firm’s payroll transactions needed to be converted into billing terms on customer invoices. The client was manually entering all of the transactions.
Grassi Solution: We designed and implemented a custom system that included a conversion program, which converted payroll transactions into billing items without data re-entry.
Result: Grassi experts helped the client find a solution that yielded significant time and monetary savings. Today, the payroll and billing processes take much less time, which has greatly improved cash flow.

Client: Business Owner/Individual Tax Client
Challenges: The client's business was failing, and banks and creditors were pursuing him. The client faced losing all personal assets.
Grassi Solution: After research, we uncovered a way for the client to carry his tax losses forward.
Result: Once we settled his business losses, the client had some remaining assets, but not enough to retire. Because of the tax losses, he was able to elect maximum withholdings when he secured a regular job. Over the next five years, the client banked all of his tax refunds and was able to retire with a nest egg in his early 60s.