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Finance Spotlight Drucker & Scaccetti
Drucker & Scaccetti
Drucker &
Scaccetti, a Philadelphiaheadquartered tax planning and consulting firm, also known as The Tax Warriors®, provides a wide range of tax and financial consulting services specifically tailored to the needs and requirements of complex highnet-worth individuals and companies.
Among its staff of nearly 100, the firm employs 10 people “grown” in Northeast Pennsylvania. The firm also has a Scranton office and clients and community relationships throughout this region. “The Tax Warriors protect your assets and chart your path to strong, sustainable growth with strategic business and personal financial consulting,” said Geoff Mesko, the partner in charge of the Drucker & Scaccetti Scranton office, who also hails from the family that owns Mesko Glass Company, located in downtown Scranton. Though Geoff grew up in the family business, he carved out his own career path and became a much-sought-after tax and family business consultant. “There are a number of factors driving a frenetic pace of private equity deals,” Mesko said. “Private equity is an alternative form of private financing, away from the public markets in which funds and investors buy into companies in pursuit of profit. The factors driving the frenzied activity include historically low interest rates and record fundraising for private equity funds,” Mesko said. “On the sell side, factors include uncertainty with rising capital gain tax rates before the end of 2021, the continued disruption of various industries along with the need for technology and innovation investments and record-breaking valuations. Anecdotally, there is more competition in the race to purchase private companies in various industries
as there are fewer private companies available to acquire.
To preserve and increase family wealth, companies should have a strong tax advisor on their teams to develop and implement
tax strategies,” Mesko said. “This is a different role from preparing tax returns and ensuring compliance with ever-increasing tax rules and regulations. It’s important that your tax advisor has the depth of people and strength "The Tax Warriors in numbers for proper planprotect your assets ning and responsiveness.” and chart your path to Drucker & Scaccetti has prostrong, sustainable fessionals that focus in differgrowth with strategic ent areas of tax law, such as business and personal mergers and acquisitions, financial consulting." wealth transfer, international (inbound and outbound), real estate, and state and local tax, while also having many experienced professionals with a broad base of tax and business experience to add value for clients. “Our depth allows us to proactively plan
for our clients and implement various tax strategies that mesh with their business and family wealth goals. Our approach is one of active listening to clearly understand the goals of the private business owner. With a clear understanding of the family goals and operations of the business, we can apply our tax knowledge to strategically increase the chances of better outcomes for our clients. In the context of an exit [sale of business], it’s important to maximize capital gain income versus ordinary income. For multi-state companies to optimize how a sale of a business will be taxed in various state jurisdictions, consider income exclusions contained within
the IRS code and tax-deferral mechanisms.
We also play a key role in understanding and modeling deal terms on an after-tax basis to ensure sellers have a good understanding of aftertax cash flow. In addition, we support our clients with working capital aspects of a deal including properly defining working capital targets and measurement of working capital after the close of a deal. We are well positioned to provide ideas that add value and bring comfort to very complex transactions.” Businesses that experienced losses during the pandemic can be assisted by the firm with cash flow modeling for the future, which allows them to properly understand and plan for cash flow. “We assist our clients with keeping good books and records as the basis for all planning and decisions and informing them about various government programs at the federal and state level that can offer aid, including grants and favorable loan programs. We also assist clients with lender negotiations. There are various tax credits that can help with cash flow–for example, employer retention tax credits and deferral of payroll taxes. There are also varied tax strategies that can be deployed, including accounting method changes to optimize taxable income, utilization of net operating losses, research and development tax credits, and a plethora of other strategies that may increase cash flow.” The firm employs many strategies and techniques to assist businesses. One commonly cited statistic that family businesses are not known for surviving after the second generation is qualified by Mesko: “We think it is important to note that average family businesses survive far longer than typical companies do. Recent studies find that on average public companies for the last 60-years lasted around 15-years. We think that family businesses will continue to be a dominant force in the economy because of their longterm mentality – this allows them to remain nimble with inevitable change. Most family businesses are very prudent with the amount of debt they assume. It’s important that family businesses continue to be innovative, adapt to change, and continually invest in process and technology to maintain their edge.” Mesko says family businesses can become insular and innovation must be a core value along with a willingness to try new ideas. “We’ve seen families employ a business advisory board made up of outsiders that allow for the free flow of communication of ideas to bring a different perspective to the board room.” Mesko noted that family value systems must be communicated regularly and con-
stantly reinforced to deflect the emotions and entitlement that can be rife in family businesses. “All families have different tactics for achieving this, including, but not limited to, family retreats, Sunday dinners, business meetings with their advisor teams, proper documentation of wishes and guardrails for future trustees. It is most important to address the communication of the values and expectations instead of wishful thinking. We actively communicate and even offer educational support and workshops for clients on this topic.” Succession planning is a task that should be considered daily and requires constant attention for anyone in management or executive levels of leadership. The rapid pace of change requires all levels of leadership to retool and learn new skills. Executive succession should be part of a well-developed strategic plan that may include internal and external communication strategies for key stakeholders. “If it hasn’t happened, one should consider what would happen if they disappeared tomorrow. Who will be able to step in and execute all their daily tasks and managementlevel activities? We’ve assisted our clients with both sudden succession plans and longerterm leadership succession plans. The sudden succession plan is akin to a binder filled with contact information, passwords, intellectual property and immediate response plans for the first 90-days. Longerterm plans can include the identification of possible successors and their skill sets, strengths, and possible derailers and how those traits align with the needs of the business.
We work with entrepreneurs, corporate executives and financially independent individuals, offering tax consulting, planning and return preparation capabilities necessary to help them successfully navigate their complex personal financial landscapes. Our individual clients come from a variety of industries and backgrounds,” Mesko said.
Drucker & Scaccetti supports various charitable and educational endeavors in Northeast Pennsylvania and is passionate about giving back to our communities. Learn more at www.taxwarriors.com. H
Building Legacies by Sharing Our Passion, Knowledge and Curiosity.
For more than 30 years, Drucker & Scaccetti has offered a varied suite of services focused on familyowned, entrepreneurially driven businesses and their owners who need tax planning solutions to sustain and grow complex and diverse holdings. Our services include:
Sophisticated and Dynamic Strategic Tax Planning Business Transition Trust & Estate Wealth Transfer Private Equity, Hedge Fund, Multiple K1s Real Estate Investments Tax Preparation for Enterprises, Families and Exempt Organizations
Call on us for all your strategic tax planning needs. Let us help you build your family legacy.
321 Spruce Street • Suite 701 • Scranton, PA • 267.765.0226 • taxwarriors.com
Maria Lawler and
Kathleen Timlin, copresidents of the Saint Joseph’s Center Auxiliary, announced the decision to hold the 21st Annual Dennis Crafferty Memorial Auction as an online
event. “The response to the online event was so positive last year that it seemed like the right choice for 2021,” said Lawler. Timlin added, “we could proceed with our planning without interruption due to the pandemic.” The Auction will be available at stjosephscenter.org from November 12-20, 2021. You can also access details about a cash raffle and other support opportunities on the website. “Over the years, the annual Auction has grown to become one of the most popular fall social events planned by the Auxiliary. Last year was no exception as friends, near and far, participated in auction bidding. The Auction is held in memory of long-time volunteer Dennis Crafferty whose commitment still blesses our ministry,” said
Sister Maryalice Jacquinot,
Saint Joseph’s Center President/CEO. The Auction also traditionally includes Center Wishes featuring needed items for the enjoyment of residents and clients. “The response to the Center Wishes has been overwhelming and provides us with extra resources to purchase musical instruments, furniture, therapy equipment as well as everyday items that help to beautify the living areas and bring an added kindness to someone’s life,” said Jacquinot. H
Pocono Mountain Arts Council
The Holiday Fine
Arts and Crafts Show, sponsored by the Pocono Mountain Arts Council, will take place at Kalahari Resort on November 27 and 28 from 10 a.m. to 5 p.m. each day, dependent on
the weather. After a short hiatus, this much loved show is back with a impressive selection of fine artists and crafters. Visitors will find everything from oils to watercolors and pastels as well as fiber arts and jewelry. The Raffle returns in grand style with many wonderful donations by our artists. Find works by many artists, including but not limited to:
Myra Trampaltzky • Aurthur Shivers • Lisa Newheart • Randy Wilkerson • Bill Underwood • Barbara Kirkland • Laura Lippay • Carol Kagel • Lenni Gritz • Nolda Falbo • Mariann B Oswald • Alice Prall • Karen Avery • John James • Pamela Eden • Sharon Santiso • Lucille Norellam • Milan Melicharek • Joan O'Farrow • Tracy Gross • Stephanie Jackson H
Treasure
Hu U u N u Tu I u N u G
PLAINS ANTIQUES AND HOME FURNISHINGS Plains Antiques and Home Furnishings is the largest Antique Mall in the Wilkes-Barre, Scranton area, featuring 50 vendors with high quality items. Antique to Retro, including Furniture, Glassware, Lighting, Jewelry, Pottery, Artwork, Quality Collectables and more. Follow us on Facebook and Instagram! 29 East Carey Street, Wilkes-Barre, PA 18705. 570-270-3107 • www.plainsantiques.com
Koziar’s Christmas Village
Nestled on a farm in Berks, arriving at Koziar’s is a little like coming to the North Pole. Millions of Christmas lights welcome visitors from
the darkness. The Koziar family has entertained thousands of guests for nearly 75 holiday seasons. What began as a private Christmas display created by William H. Koziar has grown into a major destination– even earning a place as one of the Top 10 Travel Attractions in Pennsylvania by the PA Travel Council. Tour the grounds at your own pace. Paved walkways wind through hundreds of holiday displays, lighted decorations and festive scenes. Two giant outdoor train setups chug through a miniature village and farm scenes. Small buildings along the way house scenes of holiday traditions. Peek through the giant windows to get a glimpse of Santa’s Post Office, an old-fashioned bakery, a candy shop and Santa’s Toy Shop plus beautiful Nativity scenes. Warm up with hot chocolate and warm cookies or other festival food. Koziar’s Christmas Village is open daily through January 1. www.koziarschristmas-village.com H
Keeping Team Spirit Afloat: Paul Richards
Paul Richards spent almost
four decades coaching college swimming and was inducted into the Luzerne County Sports Hall of Fame.
Swimming has always been part of his life. Growing up in South Wilkes Barre, he swam in the pools of the city's YMCA and Miner Park Pool beginning at age 4. He attended E.L. Meyers High School and was on the varsity team in grades 7-12. His brothers (Tal, Gordon and Brent) and sisters (Diane and Meg) also swam at the high school.
From 1968 to 1971, his swim team won four consecutive Pennsylvania Interscholastic Athletic Association (PIAA) District II Championships. He also earned four individual PIAA district championships in the 100 butterfly, 200 freestyle and the 400 freestyle. He held school records in the 50, 100, 200 and 400 freestyle, the 100 butterfly and the 200 Individual Medley. He was named All State in the 400 freestyle. "We had a very successful swim program for many years at Meyers," he said. "I was happy to be able to contribute to the team success and to also have some individual success. Swimming was a vehicle for me to be recognized by my high school peers." After graduation, Paul continued swimming at Bloomsburg State College, where he majored in business with an econ emphasis. He became the team captain for the season of 1974-75. At the 1974 Pennsylvania State Athletic Conference (PSAC) Championships, he was a member of the 400 relay team that not only won the championship but also set a new record thereby qualifying for the National Collegiate Athletic Association Championships (NCAA).
His first time on a plane, Paul flew with his teammates to Long Beach, California to compete in the PSAC meet. He came in second place in the 100 free and third in the 50 free.
From 1982 to 1985, Paul began his coaching career at
Hartwick College in Oneonta, NY. His team earned All
American in seven events.
From 1985 to 1994, he coached students at Mary Washington College (cur-
rently Mary Washington University). He earned the title of Coach of the Year nine times. His team won many conference championships and NCAA All Americans with one national champion. For the next 26 years, he coached swimming at Dickinson College in Carlisle, PA, where nine conference championships were won. His team also won an award for excellence as well as conference individual championships and All Americans in seven events.
Aside from teaching students swimming techniques, Paul taught his students humility, respect, service, responsibility and team values. "No one wins alone," he said. "No one loses alone. We are all connected and rely on each other." Paul was also the Director of Aquatics at Dickinson College. He taught classes in the physical education department and was chair for the last four years. He was also faculty advisor to Relay for Life, for the American Cancer Society and the advisor for Scroll and Key, a leadership and service group of seven senior men selected by the previous class. He was the faculty advisor of Spectrum, the college's LGBTQ
organization on campus. Paul is now enjoying retirement with his family. He lives with his wife of 38 years, Jeanette.
Their son Paul lives in
Philadelphia. He was humbled and honored to be inducted into the Luzerne County Sports Hall of Fame. He hopes to con-
tribute to its goals and mission. "When you look at the history of inductees, it's an amazing group of very talented folks. To be included in the group is kind of surreal. My family left Wilkes Barre after the flood of 1972. I have many great memories of growing up in Wilkes Barre, and this recognition has reconnected me to my
roots!" H – Ben Freda
