The Seven Step Exit Planning Process™

Step Five - Ownership Transfers to Insiders

Exit Planning Professional Role

• Develop strategies to transition ownership based on owner objectives.
• Coordinate Advisor Team members in developing and finalizing recommendations needed to achieve owner objectives in area of Maximizing and protecting Business Value.
• Organize and facilitate Advisor Team meetings and discussions with owner regarding strategies recommended and decisions to be made.

OPPORTUNITY:
• Earn fee for leading and coordinating the process.
• Identify strategies that will be implemented by the Exit Planning Professional based on
  practice area.

Attorney Role

• Analyze legal issues related to proposed transactions (state law, federal law, tax law, compliance with existing documents).
• Draft summaries of proposed agreements.
• Draft and implement agreements and other documents implementing transfer(s).
• Draft documents providing incentives to key employees not receiving ownership.

OPPORTUNITY:
• Generate revenue from creation of documents that implement one or more ownership
  transfers. (Generally fees not less than $5,000 and up to $25,000).
• Generate fees on a flat or hourly fee basis for document drafting, implementation and
  follow-up.

CPA/Valuation Expert Role

• Provide cash flow forecasting and modeling to illustrate and evaluate transaction structure.
• Analyze tax ramifications of sale to insiders.
• Propose tax savings or cash flow timing strategies.

OPPORTUNITY:
• Ongoing consulting fee income and continuation of business representation through
  ownership transition.
• Continued representation of business after the successor owner takes control.
• Collect fees for tax planning and structuring.
• Charge flat or hourly fees for cash flow forecasting and modeling.

Financial/Insurance Advisor Role

• Completion or update of the owner’s Financial Needs Analysis to determine whether total
  after-tax value will be sufficient to meet objectives.
• Evaluate and recommend funding strategies.

OPPORTUNITY:
• Collect fees for Financial Needs Analysis.
• Provide key person insurance to buyer.
• Provide seller insurance funding in event of seller's or buyer's death.
• Life insurance on life of buyer to ensure purchase price (value) is received by seller.
• Life insurance on life of seller to provide security to family and fund balance of buyout.
• Invest client funds outside of business.
• Qualified plan implementation.

To learn more about Setting an Owner's Exit Objectives, click here to attend a pre-recorded or live tour.