Corporate Wealth Wizardry

Description

How business creates wealth. One hour on the two sides of the coin — your corporate world and your personal world — and how wealth moves between them.

Who this is for:

This course is built for three people, and you’re probably one of them.

The founder with a profitable firm and a paycheque but no coherent picture of the wealth the firm is producing beyond the paycheque. You know what’s in your bank account. You don’t know what your firm is worth. You don’t know how the retained earnings sitting in the company should be deployed. You’ve been told you should have a HoldCo, or maybe a trust, but nobody has explained why in a way that sticks.

The buyer — the incoming owner of a firm. You’re negotiating around a number somebody calculated, and you want to understand what’s underneath it. You want to know how your salary, your retained earnings, and the firm’s goodwill all fit into a personal wealth picture, not just a P&L.

The appointed leader preparing to become an owner. You want to understand the wealth architecture of the role before you sign on for it — what it’s really worth, what the levers are, and what owners who do this well do differently.

What you’ll be able to do after one hour:

• Use the Three Wealth Streams to see every dollar your firm produces — Salary, Retained Earnings, Goodwill — as belonging to a stream with its own rules and its own tax treatment.
• Apply the Tax Cascade — Deduct, Decrease, Defer, Diversify — as a discipline for every money decision in the firm.
• Read the difference between the corporate world and the personal world the way owners who build wealth read it — as two sides of a coin with vastly different tax environments, separated by a Veil that wealth streams cross on designed terms.
• Run a first-pass valuation on your own firm. EBITDA × multiple, with a sensitivity band and a short list of what drives the multiple up or down.
• Recognize the three structures owners use — single OpCo, OpCo + HoldCo, HoldCo + Trust + Share Freeze — and know, at a high level, when each is the right fit.
• Name the conditions for the Lifetime Capital Gains Exemption and understand why the structure has to be right years before the sale for the exemption to be captured.

This is the course where the numbers from Business Finance Wizardry and Employee Financial Wizardry become wealth — the personal, tax-integrated kind. The third act.

Time commitment

The lessons in this course comprise approximately 1 hour of video. Plan for 90 minutes to two hours total the first time through, to allow for application components and reviewing supporting materials.

Assumed prior knowledge

You can take this course without having done Business Finance Wizardry and Employee Financial Wizardry, but you will get more out of it if you’ve done them first.

EBITDA, Real Gross Margin, and Loaded Labour Rate all come up here as givens. If you haven’t seen them before, keep the lexicon open while you watch. Pause the video when Jim uses a term you want to check.