Exit Strategies For Business Owners

1. Exit Strategies For Business Owners

2. Special Note - The purpose of this presentation is to provide you with a general overview of retirement, succession and estate planning strategies. Clients should always consult their tax and legal advisors for specific guidance concerning their own situations.

3. Overview • The Importance Of An Exit Strategy • Improving Your Succession Plan • Making Your Your Exit Strategy Fit Into Your Retirement And Estate Plans • Working With Your Entire Team Of Tax, Legal And Other Professional Advisors

4. What Is An Exit Strategy? • A Review Of Your Succession And Retirement Plans • Identifies Problems Before They Arise • Coordinates Your Succession And Retirement Plans Into Your Overall Estate Plan The Importance Of An Exit Strategy

5. Situation: Bob Jones and Jan Smith are equal owners Of J&S Industries Issues: How Can The Owners Prepare For Retirement? What Type of Succession Plans Are Appropriate? How Do These Plans Fit Into Their Estate Plans? Example The Importance Of An Exit Strategy

6. Your Exit Strategy Needs To Be Reviewed • Identify Your Retirement Goals & Objectives • Evaluate Succession Planning Options • Coordinate Your Personal & Business Planning Needs The Importance Of An Exit Strategy

7. Tips and Strategies • Identify & Prioritize Your Personal & Business Objectives • Solve Your Most Important Problem First • Develop A Succession Plan For Every Business You Own The Importance Of An Exit Strategy

8. Retirement Planning • Do You Plan To Retire? • How Much Do You Need To Retire Comfortably? • How Does Your Business Fit Into Your Overall Estate Plans? • Do You Have A “Retirement Savings Gap”? Improving Your Retirement Plan

9. The Four Sources Of Retirement Income • Social Security • Pension & Nonqualified Plans • Personal Savings • Work Improving Your Retirement Plan

10. Business Retirement Strategies For Owners • Pension Plans • Nonqualified Plans • Personal Savings • Business Sales Or Liquidation Proceeds Improving Your Retirement Plan

11. Succession Planning Checklist • Understand Your Options • Review Your Plan • Work With Your Successor • Utilize Your Team Of Advisors Improving Your Succession Plan

12. Business Options • Sale • Gift • Liquidation Improving Your Succession Plan

13. Situation: Tom Smith “plans” to sell his business when he retires. Issues: Who is this “buyer”? Will the “buyer” offer a “fair price”? Will the purchase price be paid in cash? What happens to Tom’s retirement plans if the payments stop? What happens if Tom dies, becomes disabled, or wants to retire early? Forced Sale Or Planned Sale Improving Your Succession Plan

14. The Planned Sale • Protects The Value Of The Business Investment • Available If There Is A Willing Buyer Or Successor • Provides Benefit To Both Parties Improving Your Succession Plan

15. Gift Planning • Some Owners Plan To Give Away Their Business During Life Or At Death • Family Members Must Be Willing & Capable Of Running The Business • Requires A Careful Analysis Of Retirement, Estate Planning, & Family Income Needs • Gift Plans Must Be Reviewed On A Periodic Basis Improving Your Succession Plan

16. Liquidation Planning • Not All Succession Plans Will Be Successful • Liquidation May Occur During Life Or At Death • Liquidation Typically Means A Substantial Loss Of Business Values • Prudent Planning Should Prepare For The Contingency Of A Business Liquidation Improving Your Succession Plan

17. Example One: The Successor Quits Before The Retirement Sale. The Owner Liquidates The Business. Example Two: The Owner Transfers His Business At Death To His Adult Children. The Adult Children Can Not Run The Business Successfully. Liquidation Examples Improving Your Succession Plan

18. Estate Planning • Complements Your Retirement & Succession Planning • Helps You Achieve Your Personal, Family, & Charitable Giving Objectives • Makes Your Exit Strategy Successful Your Overall Estate Plan

19. Summary • Your Exit Strategy Is Important • It’s Based Upon The Strength Of Your Succession & Retirement Plans • It Must Fit Into Your Overall Estate Plans • These Plans Must Be Designed With The Input Of Your Entire Team Of Tax, Legal and Professional Advisors

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