Kelm Financial Services – Example Case – Architectural Firm
(Note: Names have been changed to protect confidentiality)
Background: ABC Architectural Designs, Inc. was founded in 1991. Several years later the founder brought on two other architects who then become partners. The firm was very successful and grew rapidly. At the time that they were referred to Kelm Financial Services, the firm had seen a five year average annual revenue growth of 16% and an average net profit of over $300K (after all expenses including salaries to the three partners). The company had grown to a total of 33 employees including five (5) non-owner “key employees”. The business was valued at approximately $3M.
Ownership Structure and Partner Salaries: The firm was organized as an S-Corp and taxed as a partnership. The company was owned by three (3) partners
Key Employees and Salaries: The partners had identified five (5) key employees that were critical to the growth and operation of the company
Each of these three elements is described in more detail below.