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Partner and president of RKL Wealth Management focuses on “the meaning behind the money”

LVB: In November, RKL launched RKL Private Wealth. Why did the firm decide to do this and how does it fit in with RKL’s other offerings? 

Peer: At RKL, we’re always exploring ways to better serve our clients’ needs by bringing together the best of our capabilities and expertise. RKL Private Wealth is the latest example. We know there’s a lot of complexity that comes along with significant wealth, so we designed this enhanced service model to help high-net-worth individuals and families navigate it all. 

LVB: What kind of services does RKL Private Wealth offer? 

Peer: RKL Private Wealth encompasses many of the services we offer to clients, with integrated planning, coordination and execution. This personal financial and legacy planning approach leverages RKL’s expertise in investment management, business succession, tax compliance and planning, estate and trust services and more. 

LVB: How can having this division bolster RKL’s ability to serve its clients? 

Peer: Businesses succeed in large part due to a talented team of experts working together to implement strategy and achieve goals. We think that owners and their families should manage their personal financial matters in a similar fashion. Our specialized advisors work in concert to manage all the details, keep our clients on track and protect their upward trajectory of wealth. 

LVB: What are your goals for serving your Private Wealth clients? 

Peer: Though we’re dealing with dollars, we’re focused on the meaning behind the money. We start each Private Wealth relationship with big-picture questions about needs, objectives and motivations. This allows us to make values-based decisions and develop a customized wealth strategy that gives our clients greater clarity, confidence and peace of mind. 

RKL tackles private wealth

Laurie Peer
Laurie Peer –

LVB: In November, RKL launched RKL Private Wealth. Why did the firm decide to do this and how does it fit in with RKL’s other offerings? 

Peer: At RKL, we’re always exploring ways to better serve our clients’ needs by bringing together the best of our capabilities and expertise. RKL Private Wealth is the latest example. We know there’s a lot of complexity that comes along with significant wealth, so we designed this enhanced service model to help high-net-worth individuals and families navigate it all. 

LVB: What kind of services does RKL Private Wealth offer? 

Peer: RKL Private Wealth encompasses many of the services we offer to clients, with integrated planning, coordination and execution. This personal financial and legacy planning approach leverages RKL’s expertise in investment management, business succession, tax compliance and planning, estate and trust services and more. 

LVB: How can having this division bolster RKL’s ability to serve its clients? 

Peer: Businesses succeed in large part due to a talented team of experts working together to implement strategy and achieve goals. We think that owners and their families should manage their personal financial matters in a similar fashion. Our specialized advisors work in concert to manage all the details, keep our clients on track and protect their upward trajectory of wealth. 

LVB: What are your goals for serving your Private Wealth clients? 

Peer: Though we’re dealing with dollars, we’re focused on the meaning behind the money. We start each Private Wealth relationship with big-picture questions about needs, objectives and motivations. This allows us to make values-based decisions and develop a customized wealth strategy that gives our clients greater clarity, confidence and peace of mind. 

RKL triples size of Allentown office in first year

RKL Lehigh Valley Managing Partner Michael Stoudt (second from right) cuts the ribbon at the firm’s expanded Allentown office, joined by (left to right), Frank Facchiano of the Greater Lehigh Valley Chamber of Commerce, Allentown City Councilman Daryl Hendricks, RKL Tax Service Line Leader and Partner Wendy Lance and a staff representative from Congresswoman Wild’s office.

Lancaster-based CPA and advisor firm, RKL, is continuing its expansion in the Lehigh Valley. 

One year since the launch of its Allentown location, the firm said it has more than tripled its office space and added new areas of specialized expertise to its local team of advisors.  

The firm said it sought to expand into the Lehigh Valley because of the demand it saw for its accounting, financial management, technology and workforce solutions among companies and organizations in the area. 

“We opened our office in Allentown to be closer to many valued clients, but we always knew there was unlimited potential to serve the regional business community,” said RKL CEO Ed Monborne. “We’re proud that our growth in the Lehigh Valley allows us to help even more organizations reach the next level.” 

This summer, RKL expanded its space in the Butz Corporate Center from 2,600 to 8,400 square feet.  

The added office provides more space for client meetings and team collaboration, and better accommodates RKL’s growing team in the region.  

In the past several months, three team members have transferred to Allentown from other RKL offices, including Zachary Galloway small business services manager; Jeremy Schultz, small business senior associate and· James Ruffin, Assurance and Advisory manager 

These recent additions have grown RKL’s Allentown office staff to 14 professionals and created a local base of expertise in IT risk assessment, SOC reporting and employee benefit plan audits.  

Additionally, Eric Williams, an existing Allentown team member, recently took on a new role as a wealth analyst, serving the financial and legacy planning needs of high-net-worth individuals and their families. 

RKL launches RKL Private Wealth

From left: Nicholas Boyer, partner, chief investment officer and senior vice president; Laurie Peer, partner and president and Brandon Adams, senior portfolio manager will lead RKL Private Wealth. PHOTO/SUBMITTED –

RKL LLP, which has offices in Lancaster and the Lehigh Valley, has launched a new group of services aimed at people with significant wealth. 

The services include financial planning, tax, investment and advisory services, which are tailored to families and individuals with more sophisticated wealth management needs.  

Known as RKL Private Wealth, the services are a unified approach to personal financial and legacy planning that leverages the firm’s expertise in investment management, business succession, tax compliance and planning, estate and trust services and more. 

“There’s a lot of complexity that comes along with significant wealth, so we designed RKL Private Wealth to help individuals and families navigate all of it,” said RKL CEO Ed Monborne. “Together, we guide clients through decisions and planning today to achieve their unique aspirations tomorrow.” 

RKL Private Wealth offers a continuum of services to create and grow wealth, prepare assets for transfer and prepare recipients to receive the assets.  

The firm said the services are united around the client’s vision and values, with RKL’s wealth advisors, portfolio managers, investment analysts, business strategists, estate planners and tax professionals designing a comprehensive plan to turn life and legacy plans into reality. 

 

New subsidiary focused on growth and opportunity introduced by RKL

Brynn Schafer and Amanda Miller, both client service managers with RKL Virtual, sit with Gretchen Naso, RKL Virtual president. PHOTO/PROVIDED
Brynn Schafer and Amanda Miller, both client service managers with RKL Virtual, sit with Gretchen Naso, RKL Virtual president. PHOTO/PROVIDED –

A new subsidiary allowing business leaders to focus on optimizing and managing the accounting, finance, and workforce functions of organizations nationwide has been introduced by Lancaster-based RKL LLP.

Built from the CPA and advisory’s firm lineup of outsourced services, RKL Virtual Management Solutions LLC (RKL Virtual) will serve as a platform for continued growth.

“With RKL Virtual Management Solutions, we’re transforming the conventional outsourcing model into an opportunity to leverage talent, processes and technology to help organizations work smarter, perform better and achieve goals,” RKL CEO Ed Monborne said. “It’s an exciting time at RKL as we once again expand the notion of what’s possible for our team and our clients.”

Outsourced accounting, financial management, and human resources are offered by RKL Virtual, which combines credentialed advisors with best-in-class technology to elevate day-to-day management of core business functions into opportunities for streamlined operations, better insights, and accelerated growth.

“Over the past few years, owners and executives realized that what got them to this point won’t get them to the next level, which generated explosive demand for our outsourced back-office services,” Bethany Novis, managing partner of RKL Virtual Management Solutions, said. “RKL Virtual gives us a scalable platform to address this desire for forward-looking support.”

Novis is a member of a nearly all-female leadership team leading RKL Virtual. Novis focuses on building a strong growth foundation for RKL Virtual.

The team includes:

Gretchen Naso, president of RKL Virtual. Naso leads operations and manages strategic goals and growth targets.

Stephane Smith, managing director of workforce strategies. Smith leads the delivery and development of human resources and compensation services.

Ryan Moore, partner and managing director of finance and operations. Moore leads the delivery and development of outsourced accounting and financial management services.

RKL LLP is an advisory firm with offices located in Reading, Allentown, York, Chambersburg, Mechanicsburg, and Exton.

Pandemic-related tax changes means many haven’t seen returns

It may be more than halfway through 2022, but accountants are steal dealing with the 2021 tax return season thanks to pandemic related changes and backlogs with the Internal Revenue Service. 

Ruthann Woll –

Ruthann Woll, a tax partner and CPA with RKL LLP, said millions of people have still not received their rebate checks and some have not yet filed their return because of some of the reconciliations that needed to be done because of COVD relief stimulus from the federal government. 

“We’re dealing with the reconciliation of the third recovery rebate payment of $1,400, which was made in January of 2022,” she said. 

She said the new advanced child credit also needed to be reconciled on families’ tax returns. 

Stephanie Kane, senior manager in RKL’s tax services group, said the same is true for many businesses. 

Tax incentive programs due to Covid-19, such as PPP forgiveness and ERTC credits, impacted returns again this year. PPP forgiveness was tax free money, while ERTC credits actually increased taxable income for businesses. For that reason, Kane said careful planning is important for businesses filing their tax returns. 

“Certain tax rules changed for 2019 and 2020 were reinstated for 2021,” said Kane. “Excess business loss limitations and interest expense limitations had been lifted to help with cash flow for Covid-19. They are now back in place.” 

Stephanie Kane –

The need to address many of those reconciliations and tax changes caused many to file for deferment, to give them more time to work out the implications. 

Woll said the IRS had 54 million tax returns filed by the original April deadline but expects around 160 million returns to be filed by October of this year. 

Woll said those deferments have added to a number of other problems the IRS has been dealing with in handling the late and more complex returns, the IRS still hasn’t processed about 2 million returns that were expected to be refunds. 

Part of the problem, she said, is that the IRS, like many employers, is dealing with a staffing shortage. 

However, the IRS has been hiring more workers to help deal with the backlog. 

But the IRS is also facing problems with the increase in fraudulent returns that began during the pandemic, a similar problem that the Department of Labor & Industry had with unemployment compensation claims. 

“The last two years it’s been a really crazy environment to help the taxpayers through,” said Woll. 

However, Kane said things should be a little easier heading into the 2022 tax season. 

“Looking to the 2022 tax year a lot of the same things will impact our tax season coming up,” she said. “Practitioners should be working with clients on their quarterly estimates to make sure these items are being accounted for correctly and that there are no surprises for owners on these specific items. We don’t have significant tax overhaul concerns for 2022 at this point. Just making sure we are adjusting and taking into consideration the items we are aware of and their impact on taxes and cash flow.” 

RKL names new COO

Michael De Stefano is named chief operating officer for RKL PHOTO/PROVIDED –

RKL LLP named Michael De Stefano as chief operating officer. 

The CPA and advisory firm, with offices in Reading and Allentown, said De Stefano was promoted from CFO and joined the firm’s partnership April 1.  

In the new COO role, De Stefano will oversee the firm’s finance, IT, HR, administrative support and building and asset management functions from the Lancaster office, the company said. 

CEO Ed Monborne will remain focused on executing RKL’s strategic objectives and shaping the firm’s future through new service development, innovation, M&A opportunities and leadership pipeline. 

“As we continue to help our clients get future-ready, we must do the same here at RKL,” said Monborne 

“Mike is a well-respected leader at RKL whose attention to detail, pursuit of efficiency and commitment to excellence make him a perfect fit for our new COO role,” he said. 

De Stefano served RKL as an audit manager when he joined the company in 1995. He left to join a Central PA-based transportation and logistics company in 2009 as controller and eventually CFO and vice president of finance.  

De Stefano, who rejoined RKL in 2019, will continue to oversee RKL’s finance function as a COO and the firm’s current corporate controller and financial controller will assume day-to-day management of the Finance Department. 

De Stefano is a member of the American Institute of Certified Public Accountants (AICPA), the Pennsylvania Institute of Certified Public Accountants (PICPA) and Institute of Management Accountants (IMA). He holds a Bachelor of Science in Business Administration from Bloomsburg University.  

De Stefano and his family reside in Elizabethtown. 

 

Regional M&A activity on upswing

SOURCE/RKL –

Mergers and acquisitions are rebounding now that the pandemic has ebbed, according to a report just released by RKL LLP. 

The accounting and consulting firm looked at the M&A activity in the Central and Southeastern Pennsylvania region, which includes the Lehigh Valley, Berks County, Central Pennsylvania and Philadelphia regions and found that all except the Lehigh Valley have M&A activity in medium to large market companies that are at pre-pandemic levels or higher. 

“There was really a strong rebound across the board within the region from late 2020 and throughout 2021,” said RKL Partner Ryan Hurst, who heads the firm’s Transaction Advisory Services Practice.” The Lehigh Valley had a decent year, but definitely not as strong as pre-pandemic levels.” 

According to the report, 18 businesses were acquired in the Lehigh Valley, which includes Lehigh, Northampton and Schuylkill counties. 

That’s down from the 22 acquisitions in 2019, but higher than the 11 in 2020. 

Hurst said that in the Lehigh Valley, manufacturing and distribution saw the largest number of mergers and acquisitions. 

“That’s no surprise,” he said. “Manufacturing and distribution was the largest industry in the Lehigh Valley in 2021. When there’s lots of those kinds of companies, you’ll naturally have those kinds of acquisitions.” 

All totaled, manufacturing and distribution, consumer and retail, and health care were the top three industries for mergers and acquisitions in 2021. 

M&A activity in Berks County increased above pre-pandemic levels, according to the report.  

There were 24 mergers and acquisitions in Berks County in 2021. That’s up from 19 in 2019 and 16 in 2020. 

Buyer activity was the primary driver while purchasable targets in the market held at the 2020 level. With seven acquisitions in 2021, Rentokil North America was a major contributor to Berks M&A activity.  

In the Capital region, the area surrounding Harrisburg, M&A activity surged in 2021 to well exceed pre-pandemic levels.  

Mergers and acquisitions rose to 74 in 2021, more than double the 30 in 2020 and significantly higher than the 27 in 2019. 

Ryan Hurst –

The number of Capital Region buyers was in line with 2018 and 2019 levels, while targets more than doubled.  

Financial was the strongest industry, led by insurance brokerage deals, which included nine acquisitions by Keystone Agency Partners alone. 

The Greater York region, which includes York, Adams and parts of Cumberland and Franklin counties, witnessed less contraction in 2020 compared to other markets. It also experienced a smaller rebound in 2021.  

There were 25 transactions in 2021, the same as in 2020, but higher than the 22 in 2019. 

Manufacturing and distribution remained the hot industry, with four transactions in the paper products segment and three involving food products companies. 

Activity in the Lancaster market also increased over pre-pandemic levels.  

In 2021, Lancaster buyer activity fell by half while targets more than doubled. Manufacturing and distribution was the leading industry group, which was consistent with prior years.  

Total transactions for 2021 were at 34 compared to 22 in 2020 and 31 in 2019. 

Private equity firms and sponsored companies had significant interest in the Lancaster market in 2021, said Hurst, with 12 targets in the market acquired by these buyer types. The most active acquirer was Lancaster-based PennSpring Capital. 

Transaction activity in Suburban Philadelphia in 2021 surged compared to 2020 and 2019.  

There were 374 total transactions in the market in 2021 compared to 246 in 2020 and 289 in 2019. 

The report shows this was driven by both in-market buyers and sellers. This market is home to substantially more private equity backed and publicly traded companies than other markets in the region.  

In 2021, these types of buyers accounted for 63 percent of the acquisitions by a suburban Philadelphia company. Private equity groups and publicly traded companies located in the market returned in force after a large decline in 2020. Manufacturing and distribution and services represented the two largest industry groups for this market in 2021. 

Hurst said there was an overall increase in merger and acquisition activity from private equity investors. 

In the Lehigh Valley region alone, 11 of the 18 transactions involved private equity firms. 

In fact, he said that market is so strong there are more investment dollars out there than there are attractive targets. 

“There’s a ton of capital available that we refer to as ‘dry powder,’ money that’s been committed that hasn’t been spent,” Hurst said. “They’re raising funds faster than they can spend it.” 

Looking to the future and the remainder of 2022, Hurst said he expects continued strength in mergers and acquisitions. There are, of course, a number of factors that could impact deals. 

He said geopolitical issues, such as Russia’s attack on the Ukraine, the possibility the Fed raises the interest rate, supply chain problems and inflation are all possible detractors for M&A activity, but even with those factored in the field appears to remain strong. 

 

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