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Associate/Senior Associate, Financial Due Diligence

Segal GCSE LLP is one of Toronto’s largest mid-size accounting firm, specializing in assurance, advisory, tax, and transaction advisory. Conveniently located in Midtown-Toronto above York Mills Subway Station, Segal GCSE is committed to growth by investing in our team, providing continuous learning opportunities, and a positive, supportive work environment all with a focus on providing best in class client service.

This position represents a significant opportunity for those looking to advance their career by filling an important role in the growing Transaction Advisory practice. In this fast-paced and collaborative role, you will be contributing to the analysis and preparation of Quality of Earnings, Financial Due Diligence, and M&A transaction advisory.

Responsibilities

  • Prepare and manage diligence request lists and datarooms based on limited financial information.
  • Organize received information and track outstanding items in an organized fashion.
  • Understand business’ historical financial performance, inquire about its key accounting policies, and evaluate its controls systems.
  • Prepare in-depth analyses to understand the sustainability of earnings, the drivers of working capital, and other key financial metrics.
  • Incorporate the above analyses and assist in the preparation of Quality of Earnings or Financial Due Diligence reports.
  • Participate in new business development meetings and calls.

Qualifications

  • Strong analytical and problem-solving skills, with the ability to gather, organize and report information.
  • Minimum of 6 months to 1 year of deal-related experience (buy-side due diligence, corporate finance), or
  • Minimum of 3 years of public accounting assurance experience required
  • CPA designation required; CFA or FMVA designation is an asset.

What will set you apart

  • Working proficiency in Office 365 including Word, Excel, PowerPoint, and Teams is essential.
  • Be a self-starter and possess effective written/verbal communication skills and strong analytical and research skills.
  • Ability to thrive and commit to demanding deal environments
  • Be organized and able to meet multiple project deadlines while being detail oriented.
  • Be collaborative, demonstrate a team-player mindset and strive to deliver an exceptional client service experience.

Thank you for your interest in the role and our Firm. Please note that only short-listed candidates will be contacted for an interview.

To submit your resume for this position, please contact us by email here.

Protected: 2022/23 Annual Tax Publication

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Congratulations to our new partners!

2023 Partner Promotion Roundup – Three of a kind, meet our new partners

Segal GCSE is pleased to announce the partnership promotion of three exemplary team members: Christopher Citrullo, Daniel Wilson and Yat-Lung Shea. Each brings unique capabilities, experience and perspective to the role of partner, along with being great team players who embody our firm’s core values and culture.

A specialist in our assurance and advisory practice, Christopher Citrullo delivers exceptional financial and taxation support to clients across a broad range of sectors, including real estate, professionals and professional service firms, financial services, e-commerce and manufacturing. “Chris has demonstrated unparalleled commitment to his clients,” says Segal GCSE partner Eli Gembom. “In addition to helping clients navigate opportunities and challenges, he has proven his leadership abilities by adapting to new ways of working and supporting and guiding teams internally.” 

Daniel Wilson is a highly insightful tax expert who assists owner-managed businesses and professionals with corporate and partnership reorganizations, tax aspects of selling or purchasing a business, cross-border tax and estate planning, as well as personal and corporate tax planning. “Daniel is always thinking strategically about the best solution for each client’s unique circumstances,” notes Segal GCSE tax partner Howard Wasserman. “He will continue to foster strong relationships with both existing and prospective clients.”

Finally, as an outstanding assurance and audit expert, Yat-Lung Shea provides clients in the financial industry – including investment brokers and dealers, and mutual fund managers – with guidance and support to address all their assurance needs. “Shea has distinguished himself as the go-to person in our firm for complex audits,” highlights Segal GCSE managing partner Dan Natale. “He possesses the perfect blend of technical knowledge along with the ability to offer practical solutions and actionable advice.”

As they collaborate with the rest of the Segal GCSE team, we look forward to the leadership and insight each of these dedicated individuals will bring to the table in their new roles as partners.

Strengthening our leadership in three more ways

For more information:

Lavanya Sarathchandran
Marketing & Communications Manager
416-798-6929

LSarathchandran@segalgcse.com   

The Importance of Working Capital Definitions in Buy-Side Due Diligence

The process of acquiring a company is a lengthy undertaking which, when completed smoothly, does not significantly impact its normal operations. As many deals are done on a cash-free, debt-free basis, the post-closing balance sheet should reflect the true nature of the working capital of the company which differs from the traditional accounting-centric definition. Therefore, understanding a target company’s working capital cycle is a critical component in helping your client to negotiate a fair transaction and to ensure the smooth transition of control.

The type of deal described above typically begins with a letter of intent that has language in it relating to the seller leaving an appropriate amount of working capital in the business to ensure it continues to operate without interruption. As the deal nears completion, setting an accurate working capital target and definition for the purchase agreement is crucial so that undefined liabilities do not become the responsibility of the purchaser.

As such, deal-related working capital can consist of some or all of the following balances:

  • Accounts receivable, net of allowances for doubtful accounts
  • Inventory
  • Prepaids
  • Non-income taxes receivable
  • Accounts payable and accrued liabilities
  • Other accruals (i.e., payroll, vacations, etc.)
  • Non-income tax payable
  • Deferred revenue (if not included in indebtedness within the purchase agreement)

Determining which of the above components exist can be achieved through careful due diligence. Common steps in doing so consist of:

  • Understanding the target company and whether its working capital is cyclical as well as speaking with management
  • Understanding the accounting policies in place and ensuring that proper accrual accounting is followed. This is especially important for interim periods if the target company does not perform regular bookkeeping
  • Analyzing the quality of accounts receivable, the salability of inventory, and the relevance of prepaids to ensure good assets are left on the balance sheet
  • Observing correct cut-off and accrual procedures at period ends so that unrecorded liabilities don’t creep up post-closing

A well-understood and defined working capital target should ultimately leave both the purchaser and vendor on equal footing. The difference between the target working capital and the post-closing working capital (a period defined in the purchase agreement to allow for the books to be cleaned up post-acquisition) ultimately results in a downward or upward adjustment to the purchase price where both sides should feel comfortable about the deal you helped advise them on.

For more information:

Greg Shagalovich CPA, CA
Senior Manager, Transaction Advisory

Lavanya Sarathchandran
Marketing and Communications Manager
Phone: 416-798-6929
LSarathchandran@segalgcse.com   

Lavanya Sarathchandran
Marketing and Communications Manager
Segal GCSE LLP
Phone: 416-798-6929
LSarathchandran@segalllp.com   

All In The Family – Passing The Cottage To The Next Generation

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As parents age, they may think about transferring assets and family heirlooms to their children. Often, one such heirloom is the family cottage. Summer vacations at the family cottage are among the most memorable and cherished of times, holding deep sentimental value for parents.

Not surprisingly, many parents want the family cottage to stay in the family for future generations. It’s important to understand the issues surrounding the transition of such an asset to the next generation. This article highlights issues to consider, including income tax implications and options available.

Let’s use an example for the typical issues parents must consider in transitioning the family cottage. Mary, 68, and John, 65, are married with two adult children. Mary and John own a family home and a cottage, which was purchased 22 years ago. Recently retired, they are considering options to keep the cottage in the family, ensuring their legacy lives on.

FAMILY CONVERSATION

First, Mary and John need to have a conversation with their children to determine what is in everyone’s best interests. Are the children interested in keeping the cottage? Will they be able to pay the costs to maintain the cottage? What if only one child is interested in the cottage but cannot afford the costs? What if both children want to share the cottage? How can Mary and John ensure the enjoyment and costs are evenly divided between the children? How can conflicts be resolved?

Mary and John must have an open discussion with their children, expressing their desire to keep the cottage in the family as their legacy. At the same time, Mary and John need to listen to their children’s wishes regarding the cottage. The costs and responsibilities associated with cottage ownership must be discussed, especially if the parents will not be financially contributing to cottage upkeep.

Assuming Mary, John and their children all agree the cottage should remain in the family, several options are available to transition the cottage to the children, each with its own tax implications and other considerations.

CLICK HERE to read the full article and to learn more!

For more information:

Lavanya Sarathchandran
Marketing and Communications Manager
Phone: 416-798-6929
LSarathchandran@segalllp.com   

Lavanya Sarathchandran
Marketing and Communications Manager
Segal GCSE LLP
Phone: 416-798-6929
LSarathchandran@segalllp.com   

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