Mage AdvisoryCase Studies
How we’ve helped
Providing clear, realistic solutions to complex issues
Here we shine a spotlight on our recent work to give you an idea of what we can do for your business.
Successfully facilitated the de-merger of two businesses founded by the same group. The complexity here was the numerous investor holdings and various related party loans which had to be separated for the de-merger to occur. We provided guidance and advice on the impact of the proposed de-merger for the stakeholders in terms of income tax and capital gains tax. Different options produced different tax outcomes for various stakeholders. We were able to work through the options with the stakeholders and map out the path that provided the fairest outcome for all.
Dynamics Business Central Implementation rescue
Mage Advisory supported a small cap ASX listed company with a consolidated group of six companies across five countries in their migration to Dynamics BC.
This business has a primary production and manufacturing element in Fiji, with distribution centres in Australia, NZ, US and Singapore.
Large Primary Production Business Sale
Acting on behalf of the vendors in the sale of a large primary production business to foreign investors. This involved providing tax advice on deal structure and exit, while handling various tax due diligence matters with the purchasers.
National Business Re-structure into Single Structure
Merging of a national group of contracting businesses, with international operations, into a single entity with a view to equalising the equity holding for all shareholders, facilitate the long-term growth of the business and simpler succession and sale by shareholders.
Assistance with negotiations, valuation and shareholders agreements.
Provision of specialist QBCC financial requirement advice to Queensland and Interstate businesses to deal with threatened licence suspension.
Solved by restructure of their businesses to better meet the QBCC requirements. Under similar time pressures also resolving licence suspensions in the QCAT tribunal.
QBCC Licence Suspension
Provide advice to a large national project builder and large local builders in relation to the ability to meet the QBCC financial requirements. Consideration of the whole group financial position including inter-group loans was key. We utilised our experience with the QBCC and other state regulators to form a position and provide guidance on next steps and possible outcomes working with all advisors to ensure the best outcome.
Professional Services Succession
Drawing on our long experience and specialist knowledge, we successfully facilitated the development of a succession model for a number of professional services firms. This involved modelling of different financial scenarios from the point of view of existing equity holders and new equity holders, through to the facilitation of shareholders agreements and optimisation of business structure.
Staff Training – Tax Consolidations & QBCC
Delivery of professional training to accounting firms. The QBCC financial requirements have been a popular topic due to the regulator being active in pursuing non-compliance. The use of Tax Consolidations in an SME environment has also been of interest due to its considerable benefits in certain situations.
Sports Gambling Merger
We provided tax advice regarding the merging of two separate shareholder bases into one Corporate Group to undertake an online sports gambling business in the US. This involved working through a range of different commercial and legal issues to ensure the business was ready to raise capital once merged.
ATO Audit Support
Provision of tax audit advice and support to small and mid-size accounting firms with matters reviewed by the ATO.
Assistance with interpretation of the issues under scrutiny and development of strategy to manage the matter efficiently with the ATO.
Property Structuring Advice
Provision of structuring advice to property developer with the advice encompassing asset protection, finance arrangements, long term holdings, future plans to develop, GST, income tax, land tax, stamp duty, as well as the cost of changing and maintaining structures.
Recently, Mage Advisory completed a review of a logistics business with succession issues on behalf of a potential investor/purchaser.
Providing a report on the status of the business, including their business activities, financial strength, people, assets, systems and compliance.
Business Buyout Support
Assisted business owner to negotiate the buyout of his business partner’s interest in the business. The complexity of this project was the business structure having a number of entities, the business owned real property, and there was no shareholders agreement in place. Relations between the shareholders were civil but strained. We were able to successfully facilitate the settlement, which involved refinancing and some restructuring of the business.
Advising on the commercial, accounting and tax aspects of merging three separate businesses into one corporate group to enable sale to a large Multi-National operating in Australia. This involved working with all stakeholders and their advisors to navigate all issues involved in the process.
Construction Business Restructures (QBCC)
Working with a number of advisors to provide expert advice in relation to the impact of QBCC financial requirements on construction business structuring. Historically, many businesses have traded through a trust arrangement which is typically unworkable when meeting the QBCC requirements. Related party loans become a significant challenge. We provided advice and support to advisors and business owners in restructuring in a tax effective, commercial manner.
Board Reporting Update for Mid-Size Corporate
Detailed review of the existing financial Board Reporting framework with a view to improve the quality and format of the information provided.
Working alongside the General Manager and Company Accountant, Mage was able to introduce a more summarised, targeted reporting format.
The key here was to develop a reporting tool and format that the existing team could easily navigate and manage, but which also satisfied the needs of the Board.
Business Review/CFO Support for a Professional Services Firm
Provision of CFO services to a mature growing professional services firm to assist them in navigating the changing business landscape and “pivot” the business as necessary. Review of business performance, staff and reporting.
The COVID-19 pandemic occurred during this process rendering the review and guidance all the more significant.
Construction Business turnaround
Provide practical, senior-level finance support to a construction business, in its efforts to manoeuvre their previously successful business back into the black.
Achieved by streamlining their accounts function, re-defining and setting up monthly reporting, cashflow management, WIP calculation, profit recognition/margin release standard practices and a finance team structure.