Portfolio company services
Private-equity-owned companies need to move quickly in a rapidly changing business environment. Discover how you can strengthen performance, address challenges and realize greater value.
Why Wipfli?
Get the guidance and experience to improve performance and realize full value with Wipfli. We deliver strategic ideas from a wide range of perspectives, including tax optimization, performance alignment, operational excellence and workforce engagement.
Wipfli understands the unique valuation and financial reporting needs private equity faces. Our experienced team is ready to meet your timeline and industry-specific requirements with valuation services, including:
- Financial reporting, including ASC 805, ASC 718 and 409a valuations.
- Complex securities, including options and warrants, mezzanine debt, equity investments in complex equity structures and convertible notes.
- Mergers and acquisitions.
- Succession planning.
- Buy-sell agreements.
Wipfli’s tax team brings industry-specific experience and proactive guidance to help ensure that you’re minimizing your tax liability and staying in compliance. We know the tax challenges private equity faces in buying and selling portfolio companies, and we can help you with:
- Maintaining the tax compliance of various structuring options.
- State nexus reporting.
- Identifying additional filing needs.
- CPA tax services.
- Navigating complex federal, state and local tax law.
- International tax.
Wipfli can help you modernize your operations while maintaining data security compliance. From digital strategy and enterprise solutions to cybersecurity, we can help your organization implement, integrate and secure the latest innovations.
Add knowledge and experience tailored to your industry with Wipfli’s outsourced services. We take ownership of your back office, including accounting, human resources, operations and technology, so that you can focus on growth.
We provide industry-specific audit work, including support for manufacturing, healthcare, construction and real estate. And we have the capability to navigate your complex accounting needs and required time frame.
Our assurance services include:
- Accounting services
- Financial statement audits
- Single audits
- Internal audits
- SOC audits
- Other attestation services
Wipfli brings industry-specific agility and experience to your transaction. We provide you with end-to-end diligence and quality of earnings backed by technology solutions and a global network of audit, tax and financial advisory professionals so that you can maximize your return.
Wipfli’s organizational performance services can help you develop the strategy, people and operations you need to support a growing organization. Our team’s proven processes are ready to help you increase effectiveness and efficiency.
Effective risk management can help you achieve profitability and compliance. Let Wipfli support you in managing risk across your organization with support for regulatory risk and compliance, technology risk, internal controls, governance and fraud investigation.
Reach out to our team
See how we can help you navigate complex financial, operational and compliance challenges while pursuing long-term value creation.
Insights and resources
ARTICLE
2027 private equity trends: People matter more than ever
Get the industry outlook for lower middle market private equity firms in 2027, including key trends, growth opportunities and action steps for leaders to win more deals.
PODCAST
Bank on Wipfli podcast: How to reduce your tax burden when selling an RIA firm
In this episode of Bank on Wipfli, host Robert Zondag sits down with Dan Pastron and Cory Vargo, tax partners at Wipfli, to discuss how registered investment advisors can structure the sale of their firm to maximize after-tax value. Together, they explore critical tax and structuring considerations for RIA transactions, including: The impact of legal entity structure — asset vs. stock sales and why most RIA deals are treated as asset sales for tax purposes. Key tax planning considerations around rollover equity, including how to preserve tax deferral and avoid unexpected liquidity issues. Challenges related to allocating proceeds among shareholders at different career stages and how entity structure can limit or enable flexibility. The importance of early planning, state tax considerations and involving experienced advisors well before taking a firm to market. Learn more Why FP&A is essential for RIAs in a changing industry Succession planning’s role in your financial institution Succession planning of sell-side prep — or both? Listen on Apple Podcast Listen on Spotify
ARTICLE
Smart tax planning for sole proprietors and real estate investors
Every dollar you fail to plan for is a dollar you hand over unnecessarily. Whether you run a business, own rental property — or both — the difference between a reactive taxpayer and a proactive one is measured in thousands of dollars each year. Below, explore proven strategies that could potentially start saving you money immediately. Business income and expense planning For sole proprietors, here are some tax optimization actions to manage cash flow, avoid penalties and make smarter, timing-based financial decisions. Separate your business and personal finances — without exception If you are still running business transactions through personal accounts, stop. Open a dedicated business checking account and credit card ASAP. This is not just good bookkeeping — it is your first line of defense in an audit. Commingled finances invite scrutiny and undermine the credibility of every deduction you claim. Track deductible expenses in real time Most business owners wait until tax season to reconstruct their expenses. This is the wrong approach. Use accounting software — QuickBooks, Wave or FreshBooks — to categorize expenses as they occur. The deductions available to you are broad: office rent, utilities, business-related travel, meals (50% deductible), professional development, software subscriptions, marketing and employee wages. These deductions do not happen automatically. You must document them consistently. Keep receipts, maintain a mileage log if you use a personal vehicle for business and note the business purpose for every meal or entertainment expense. Vague records do not hold up — not with the IRS and not in a well-run business. Structure your entity to minimize self-employment taxes One of the most powerful tools for small business owners is the S corporation election. By electing S corp status, you split your income between a W-2 salary and a shareholder distribution. Only the salary portion is subject to self-employment taxes (15.3%). Distributions are not. Executed correctly, this structure can save a business owner $5,000 to $20,000 or more annually in payroll taxes. The critical requirement is setting a “reasonable” salary for your role — the IRS scrutinizes artificially low compensation — so work with a qualified advisor to land in the right range. Maximize retirement contributions A Solo 401(k) or SEP-IRA is one of the most underutilized tax reduction tools available to self-employed individuals and small business owners. A Solo 401(k) allows contributions of up to $72,000 per year (2026 limits), combining both employee and employer contributions. Every dollar contributed reduces your taxable income dollar for dollar. Failing to maximize this is a double loss — you overpay taxes today while under-saving for the future. Plan quarterly estimated tax payments Business income is not withheld automatically. Missing quarterly estimated payments triggers underpayment penalties on top of your tax bill. Pay on the IRS schedule — April, June, September and January — and base your estimates on either 100% of last year’s tax liability or 90% of the current year’s projected liability, whichever is lower is the general guideline. Time your income and expenses deliberately If you are in a high-income year, accelerate deductible expenses before December 31, purchase needed equipment or make year-end charitable contributions. If next year’s income is projected to be higher, consider deferring invoices where your contracts allow. Timing is a legal and often overlooked planning lever that pays dividends for those who use it. Income and expense planning for real estate investors and landlords To maximize your real estate tax advantages, take these strategic steps to protect your assets and increase your financial flexibility. Use depreciation — and use it aggressively Depreciation is the single greatest tax advantage in real estate. The IRS allows you to deduct the cost of a residential rental property over 27.5 years and commercial property over 39 years — even as the property appreciates in market value. This creates a paper loss that offsets rental income and, in some cases, other income as well. Take this further with a cost segregation study . Rather than depreciating the entire building on a straight-line schedule, a cost segregation analysis reclassifies components — flooring, fixtures, landscaping, electrical systems — into five, seven or 15-year property categories, dramatically front-loading your deductions. On a $1 million property, a cost segregation study can generate $100,000 or more in first-year deductions. The study pays for itself many times over. Know every deductible expense you are entitled to Landlords can deduct mortgage interest, property taxes, insurance, repairs and maintenance, property management fees, professional services, advertising, travel to the property and utilities you pay on behalf of tenants. Capital improvements — a new roof, HVAC system or structural addition — must be depreciated over time, while repairs and maintenance are expensed in the year incurred. The distinction between the two is meaningful, and your records should reflect it clearly. Qualify as a real estate professional if you can The IRS restricts passive activity loss deductions for most investors. However, if you spend more than 750 hours per year on real estate activities and more than half of your total working time is dedicated to real estate, you qualify as a real estate professional . This status allows rental losses to offset ordinary income without limitation — a potentially transformational tax benefit for full-time investors or landlords whose spouse qualifies. For those who cannot meet this threshold, the $25,000 passive loss allowance phases out between $100,000 and $150,000 of adjusted gross income. Knowing where you fall in that range is essential for annual planning. Defer capital gains with a 1031 exchange When you sell an investment property, capital gains taxes can consume 20% or more of your profit. A 1031 exchange allows you to defer those taxes entirely by rolling the proceeds into a like-kind replacement property. The timelines are strict — 45 days to identify a replacement and 180 days to close — which means planning must begin before the sale, not after the closing call. Hold properties in the right legal structure Owning property in your personal name exposes you to personal liability. Consider holding each property — or a portfolio — within a Limited Liability Company (LLC). Beyond liability protection, LLCs offer flexibility in how income is reported and can simplify estate planning. Multimember LLCs taxed as partnerships allow for special allocations of income and losses among partners, creating additional planning opportunities that a properly structured entity can unlock. Read more ASC 740 explained: A short guide to the accounting standard for income tax provisions Marketplace facilitator tax: Rules, compliance requirements and considerations for businesses Gross receipts tax: What it is, how it works and how to calculate it
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Wipfli’s professionals are ready to apply our deep industry specialization and wide range of services to help you protect your investments and create greater value.
