The Seven Step Exit Planning Process™

Step Six - Business Continuity

Exit Planning Professional Role

Suggest continuity plans appropriate for accomplishing owner’s objectives.
Facilitate efforts of other advisors with regard to Valuation, Buy-Sell Agreement design and Funding.
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

Prepare legal business and estate planning documents.
Prepare Stay Bonus Agreement.
Assist owner in positioning business to operate independently if owners is unable to remain involved.

OPPORTUNITY:
• Prepare business continuity documents. (Fee generally between $3,000 and $7,500).
• Implementation of documents and agreements if a death or disability occurs.

CPA/Valuation Expert Role

Perform or review valuation.
Evaluate or interpret valuation provision in legal documents.
Analyze anticipated cash need of business should owner die.

OPPORTUNITY:
• Provide fixed fee valuation services.
• Provide financial advice in planning for various contingencies.
• Maintain business as a client, following a business continuity event.

Financial/Insurance Advisor Role

Review continuity arrangements in light of Financial Needs Analysis.
To sole owner, explain need for continuity and Stay Bonus Plan.
If there is a co-owner, discuss need for business continuity planning.
Coordinate continuity planning with estate planning.

OPPORTUNITY:
• Provide funding in case of owner's and co-owner’s death or disability.
• Participate in design and funding of Buy-Sell arrangements.
• Provide funding mechanism Stay Bonus Agreement.
• Fund business capital needs for various contingencies.

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