Client Story: G & G TilingSeptember 4, 2019
The art of tiling is inherent in this family business, with the founder Walter Gesuato emigrating from Northern Italy over 50 years ago with his younger brother. G & G Tiling has gone from strength to strength and now includes a large team including project managers, estimators, leading hands and an amazing group of tilers.
Managing Director Mark Gesuato and his father Walter have grown the commercial/industrial tiling business substantially in the last five years, thanks to their family values, passion, drive and quality work. Since 2009, Oreon Partners has helped G & G Tiling purchase a property within a superannuation fund, put a clear succession plan in place and automate many aspects of their business operations.
Purchasing Property out of Super
Due to the considerable and rapid expansion of the business, G & G Tiling needed commercial premises to create a comfortable office space for employees and clients, as well as for warehouse storage purposes.
Thanks to a separately licensed financial planning business, Oreon Partners Financial Planning, run by Matthew Pelizzari, we were able to advise them on how to purchase this commercial property within a superannuation fund. It was a complex transaction, involving setting up a Self-Managed Superannuation Fund which considered:
- The future sale of existing assets and the possible capital gains consequences of those sales
- Contributions to super without exceeding contribution cap limits
- Transfers and rollovers from existing superannuation funds
- How best to set up limited recourse borrowing arrangements via a related party loan
- The mitigation of personal risk by organising personal insurances for the owners of the business.
Effective Succession Planning
With the founder of the business nearing retirement, G & G Tiling needed a succession plan. This covered many aspects, including:
- Valuing the business
- Securing future income
- Managing the emotional aspects of relinquishing ownership and control
- The timing of the property transition
- Minimising tax implications through transfer of ownership and small business CGT concessions, and giving ongoing flexibility with income and capital distribution via trust ownership.
Oreon Partners successfully navigated all these areas to ensure that each party was happy with the outcome and the future of both the business and its founder were secured.
Life in the Cloud
For a growing business like G & G Tiling, getting a grip on all operations is vital. In addition to implementing better accounting and cash flow systems through Xero and Futrli, the business has implemented software called Buildxact. Having this tool means they can more accurately monitor their quotes, work out what each job costs and how much profit they make from it, and eliminate waste in the business so they become more efficient and profitable.
These cloud-based programs and technologies have allowed greater visibility of key business operations, more timely information, and seamless communication with Oreon Partners, so that we can essentially operate in a virtual CFO role.
G & G Tiling is now much better prepared to continue growing their business, and we wish them continued prosperity – including success with their new website, which launches this week. You can view the new site and learn more about G & G Tiling at: www.ggtiling.com.au.