In response to a collapsing share price, millions of lost customers, and rumors of the company’s sale, today Mario Costanz released a letter to the Board of Directors of H&R Block, Inc. (NYSE: HRB)
Mario Costanz, the founder and CEO of Happy Tax, the innovative franchisor that is re-inventing the industry for tax filers and tax preparation professionals alike, believes that H&R Block, currently the largest retail tax preparation company in the US, has lost its way as a company and should get back to its entrepreneurial roots. With renewed management focus,Mario Costanz believes H&R Block still has time to significantly improve financial performance, franchisee morale, product quality, and consumer satisfaction.
“Injecting new management energy and new ideas makes the most sense for H&R Block at the current time,” suggests Mr. Costanz. “Since their stock is down 30 percent year-to-date and rumors are already starting to swirl that the company is preparing to sell itself, H&R Block should explore all options, including selling the company to a private equity firm that could turn around this sinking ship.”Adds Mr. Costanz, “The tax preparation business has changed significantly since 1955 when H&R Block founders Henry and Richard Bloch invented the industry. Consumers and small businesses now have numerous tax preparation options. The traditional storefront model embraced by H&R Block is expensive and broken, and recently the company has severely underperformed Intuit (NASDAQ: INTU) and even independent providers.”
With an industry leading executive team and a disruptive business model loved by consumers and franchisees alike, Happy Tax is well positioned to offer this guidance to a company that seems to have lost its way. A copy of Mr Costanz’s letter of recommendations to H&R Block is below.
Happy Tax’s model allows for consumers and small business owners to access a network of professional CPAs by leveraging the power of superior technology in a more convenient and efficient way. Happy Tax helps its franchisees meet the needs of today’s increasingly tough regulatory requirements without the burden of preparing taxes themselves, hiring costly staff, or signing risky leases. And their customers do not have to wait in a tax office for the better part of an entire day to get their taxes done.
Marcus Slater, Marketing Director
Happy Tax Franchising
Anne Howard from AH Marketing Group