Transcript
Hi everybody, I want to talk to you about World Class due diligence. How our community of over 200 independent CPA firms family offices, law firms, specialty firms, best in class peer reviewed, how our community is able to work together independently to create 10 times the results that the traditional due diligence from CPA firms law firms family offices accomplishes.
So how do we create 10 times the quality of due diligence in 10 times less time, with 10 times less risk? So we're going to talk quickly go through the 10 pillars of revolutionary due diligence and the enemy of revolutionary due diligence is good due diligence. So we don't want to be trapped in good due diligence because good due diligence can lead to disastrous results. We want world class revolutionary due diligence. So let's talk about how we accomplish revolutionary due diligence.
Number One Pillar is independent feedback versus groupthink feedback, right? We want independent elite CPAs, looking at sophisticated tax planning strategies, introducing their favorite resources, their favorite strategies to the community, the community independently vets out those strategies independently. That's out the players know strategies versus a group. What is a group? A group is a large law firm, a large CPA firm with lots of attorneys, lots of CPAs working for one company, right? What does that mean? There's going to be groupthink in there right. Why because W2 employees do you want do not want to upset the applecart and if the head partner recommends a strategy or thinks a strategy is good or thinks a strategy is bad, and one of the low level medium level CPAs is a W2 employee has a question about it wants to challenge it. They might be scared to challenge it because it's part of a group think a corporate structure. So independence This is very, very important versus group think.
Number Two Pillar. Do we want feedback from everyone what they think about sophisticated tax planning strategies? No. Some people are not qualified to provide that feedback, right? Our country was built as a republic, not a full democracy. We don't need mob rules specifically with sophisticated tax planning. So who do we want to provide this feedback? We want highly qualified, experienced, elite, CPA, tax professionals, elite tax attorneys with a lot of experience in tax, elite family office leaders who have a lot of experience dealing with the IRS dealing with tax, they're the ones we want their feedback, we want them to look at the strategy provide that independent feedback and make sure that that feedback is coming from experienced world class or high level tax professional.
Number Three Pillar. We want to look at the specialists' experience. Which attorney is bringing this situation to the fold. Which specialist is bringing this situation to the fold? Let's look at their background. Are they truly best in class? Does their community look at them as best in class, let's look at their experience. Before we take their word as gospel. Of course, we're not going to take their word as gospel, but the specialist experience is very, very important. And we look at that as a third pillar of revolutionary due diligence.
The Fourth Pillar of revolutionary to create revolutionary due diligence is a comparative analysis of benefit versus cost. And what I'm saying is, how does this structure the benefits versus cost compared to other structures, other possible solutions, and then of course, how they fit in that specific fat Pat fact pattern of that client of that family of the business owners dealing with that specific tax situation. Let's do a comparative analysis.
The Fifth Pillar is a comparative analysis of the risk versus reward. There's so many things that go into risk, audit risk Tax Court risk. The reward obviously, the rewards are simple to calculate, but we want to calculate the risk versus reward and then compare them to the risk reward of every other possible strategy that's going to fit into this particular fact pattern.
The Sixth Pillar. What's the IRS position on this current structure or similar structures that the IRS has has seen in the past? What is their position? What is their guidance? What does our community see into that? Let's look at that with everyone's perspective. Let's put all that into the hub and stir it up and see what comes up.
The Seventh Pillar, the gut feel we want to test the gut feel of our most experienced elite CPAs elite family office leaders, elite tax attorneys elite specialist, who just have built up so much experience that their gut when they look at a new strategy or strategy they've ever seen before their gut talks to them. We want to know what that gut is saying. Because that that gut is probably smarter than then a lot of people's brains are working, we want what we want to see what that gut feel is we want to share that gut feel with the rest of the community and see what what our guts are telling us about this particular strategy, fitting into this particular fact pattern. forensic analysis of the presentation in the feedback, so we want to do a forensic analysis on not just the presentation of the specialist, but we want to analyze that that presentation. We're also going to analyze the the feedback coming from our tax attorneys and our CPAs.
The Eighth Pillar. Sometimes what we like to do when we have a new strategy or strategy people haven't seen before, we like to create a Zoom Room, put the specialist in there, allow him to present, pick a few of our elite CPAs and tax attorneys, put them in that Zoom Room and let them fight it out. And record that session and then share With the rest of our community, because what we want to do there is we want to analyze the presentation of the specialist bringing the solution to the table. We also want to do a forensic analysis of the feedback of our attorneys of our CPAs. Looking at that, because we want to get rid of all the egos we want to get rid of, because if there's an attorney who doesn't like a strategy than another attorney is bring the table maybe, maybe that feedback is based on the fact that that attorney doesn't want our community to shift gears and do more business with this new strategy with this new law firm than than the current one. So forensic analysis is really, really important when analyzing feedback and analyzing the quality of the original presentation. Curiosity, the ninth pillar and this might be the most important one.
The Ninth Pillar of revolutionary due diligence is the curiosity of the due diligence project participants. Look, we're talking about suffering. sophisticated seasoned professionals with a lot of experience and what tends to happen with people who are really, really the best at what they do is they get confident, and then they relax. And then their curiosity comes down and they think they know it all. We're not interested in people who think they know it all. We're interested in people who are at the top of their professions, who still maintain curiosity, who still believe there's a lot more to learn. And of course, when we realized nobody knows how many pages are in the tax code, the tax was constantly changing. And tax turns are not allowed to solicit and legally market their unique tax planning strategies to the open marketplace. How is it possible for anyone to know everything? It's impossible and so, curiosity is one of the critical pieces that every member in our community has to have a little bit of curiosity at the very, very least, and hopefully a lot more than that, in order to continue searching to continue. No turning over rocks to find different strategies. Can you introduce new strategies to the VFO hub, and to be curious enough to explore a new strategy that they've never seen before, and provide their honest feedback so that we as a community can continue winning
The Tenth Pillar of revolutionary due diligence is herd risk. We don't want to be doing strategies that are way ahead of the herd and way behind the herd. Because you know, we want to be right in the middle of the pack. Because if you're too out in front, you might get eaten. If you're the last Gazelle crossing the wilderness. You know, those hungry lions might get you so we don't want to be the last we don't want to be the first we want to be in the middle of the pack. And so we want to eliminate that herd race so
So today, I want to cover those 10 pillars of revolutionary due diligence in order to create the best possible results in order to 10 X, the quality of your due diligence to quality due diligence results, specifically when focused on sophisticated tax planning, which which creates, which we can create as a community. In 10, in 10 times less time, and with 10 times less risk. So those are the 10 pillars of revolutionary due diligence from the due diligence project. Thank you so much. Have a great day.
