The Seven Step Exit Planning Process™

Step Three - Maximizing and Protecting Business Value

Exit Planning Professional Role

Suggest tools and techniques appropriate for accomplishing owner’s 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.
Communicate the owner’s objectives to Advisor Team members.
Present preliminary plan with recommendations.

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

Conduct Annual Planning Meeting with all Advisory Team members present.
Periodically review entity status (C versus S).
Identify tools to protect business value during periods of growing or flat performance.
Analyze federal and state law implications of proposed strategies.
Draft legal documents necessary to implement recommended strategies.

OPPORTUNITY:
• Meet with client, typically 3-15 hours.
• Draft summaries of recommended documents, as well as final documents. Fees typically
range from $5,000 to $50,000.

CPA/Valuation Expert Role

Perform tax planning necessary to manage and/or minimize tax consequences to owner resulting from conversion to “S” status.
Analyze conversion to "S" status, if applicable.
Evaluate creation of multiple entities, if appropriate.
Analyze finances to measure success from recommended techniques.

OPPORTUNITY:
• Provide ongoing tax and financial management advisory services for fixed or hourly fee.
• Provide cash flow forecasting and financial impact analysis for recommended tax savings or
employee compensation strategies.
• Ongoing annual tax planning work.

Financial/Insurance Advisor Role

Recommend insurance to protect against loss of business value.
Educate owner about key employee retention/motivation techniques.

OPPORTUNITY:
• Fund Key Person Insurance through Non-Qualified Deferred Compensation plan.
• Design and implement retirement plan.
• Fund Non-Qualified Employee benefits.
• Fund Non-Qualified Deferred Compensation.
• Key person life insurance.
• Retirement plan administration and investment.
• Ongoing annual planning work.
• Long Term Care insurance.

Consultant Role

Identify and enhance the key Value Drivers.
Guide owner toward issues of operational efficiency.
Assess skill levels of employees.

OPPORTUNITY:
• Create and implement a business plan (Generally $5,000 to $25,000 in fees).
• Ongoing consulting projects.

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