Documenting the Data – The Discover Stage Rick Katz Director, Business Markets Development AIG Advanced Markets AIG In order to solve the client’s problems, issues and goals, the planner must accumulate data and qualitative information. While the science of this task is important, the real connection and clues to the solutions comes from an engaging data gathering session. Asking the right questions and documenting accurate qualitative and quantitative information will assist the adviser in creating and presenting a workable, optimistic and attractive plan of action. Everybody wins. Module 2.2 FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

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Opening It doesn’t matter what you are trying to accomplish. It’s all a matter of discipline. - Wilma Rudolph In preparation for battle, I have always found that plans are useless, but planning is indispensable. - Dwight D. Eisenhower Successful people ask better questions, and as a result, they get better answers. - Tony Robbins Wilma Rudolph, the iconic Olympic champion said, “It doesn’t matter what you are trying to accomplish. It’s all a matter of discipline.” Success for a business is no different. President, then General Dwight Eisenhower said, “In preparation for battle, I have always found that plans are useless, but planning is indispensable.” Finally Tony Robbins said, “Successful people ask better questions, and as a result, they get better answers.” We craft plans that assist our clients in living the life they picture. There is an art and science to it. The science part is data gathering so we can quantify the issues and solutions. This process also provides insight as to the why, motivations and inspirations of the client. We must listen carefully as we ask numbers questions as well as values based questions. In this module, you will learn about the resources available to you to collect the data and pointers as to how the experience should unfold. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Accumulating the Data 3 Resources for Documenting the Information A Personal Fact Finder Accumulate data about the owner’s personal life and family Business Supplemental Questionnaire Learn about the business structure, players, numbers Values Based Targeted Questions Ask specific drill-down questions about top priorities from the 7 Topics There are 3 specific resources available for documenting the information. A Personal Fact Finder, which is used to accumulate data about the owner’s personal life and family. A Business Supplemental Questionnaire, for learning about the business structure, players, numbers and more. Finally, a list of values based targeted questions, which ask specific drill-down questions about each of the top priorities from the 7 Topics for Business Owners. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values A personal fact finder will describe the owner’s family, wealth, personal goals and achievements so far. The Advanced Planning Questionnaire is available on the Advanced Markets website. Review the questions prior to your meeting Highlight the necessary questions Pay special attention to the questions in the back When interviewing, ask clarifying questions First, let’s take a look at the personal data collection. It is used to describe the owner’s family, wealth, personal goals and achievements so far. The questionnaire is available on the AIG advanced markets website at www.aig.com/advancedmarkets. It is important that you review the questions in advance. It is probably not necessary to accumulate all the information presented in the questionnaire. Highlight the questions you will ask. This will make the process more effective and shorten it for the client. You will also sound more professional and less scripted and disconnected. To prove to your client that you are also engaged in the process, ask clarifying questions to be sure you understand their answers. It also reinforces the dialogue. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values Here is a quick glance at the personal fact finder form. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values A Business fact finder will describe the business itself. What kind of entity, exit plans, finances and future plans The Business Supplemental Questionnaire is available on the Advanced Markets website. Review the questions prior to your meeting Highlight the necessary questions Pay special attention to the questions in the back When interviewing, ask clarifying questions That was the personal factfinder, now, let’s take a look at the business data collection. It is used to describe the business itself. What kind of entity are they? Who are the owners? Do they have an exit plan? Finances, future plans. Once again, the questionnaire is available on the AIG advanced markets website at www.aig.com/advancedmarkets. Don’t forget, It is important that you review the questions in advance. Highlight only the questions you need and will ask. Stay engaged in the process too by ask clarifying questions to be sure you understand their answers. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values Here is a small section of the business supplemental fact finder. The form is attached to this module. Check it out and become familiar with the form. You want this interview to be natural and not sounding scripted. You don’t have to ask all of the questions. After all you probably know some of the answers already. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values A Values Based Interview will explore the wants and desires of the business owner client regarding a specific Topic Descriptive questions are used to solicit the feelings and emotions behind the future goals Determine the client’s priorities from 7 Topics Select and ask the questions from that topic Questions are available at the back of each FF When interviewing, ask clarifying questions We have looked at the personal information fact finder and then the business form. Now, let’s take a look at the Values based questions. The purpose of a Values Based Interview is to explore the wants and desires of the business owner client regarding a specific Topic. Descriptive questions are used to solicit the feelings and emotions behind the future goals. First, you must determine the client’s priorities from 7 Topics. Then, select and ask the questions from that topic. Questions are available at the back of each FF and have been reorganized in the 7 Topics Supplemental Questionnaire. Once again, when interviewing, ask clarifying questions. 7 Topics Supplemental Questionnaire FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Personal - Business - Values Here is the 7 Topics Questionnaire   First, How to exit the business - How, when, to whom, how much. If I could show you how to exit your business when you want, on your terms and for the money you need, would you like to see that? Describe the general objectives for your business between now and retirement (e.g., grow/expand, sell, go public). If you were to die, what would be the impact on your business? How much do you care about the continued success of your business after you have departed? Why?   Next, Protection from losing key person – The company would suffer economically You mush quantify what this loss would be. Would you like to recognize how to value key people in your business and protect yourself from losing them?   Estate and personal benefits – This is Estate planning for the owner. We also want to take advantage of the fact that you are the owner and benefits may be available to you and not others. You’ve put everything into this business. Do you want to learn how to get the most out of it and protect it along the way? Next, Getting money out - What is the best way for you? W2 income?, K1, expenses? Tax strategies? Only a tax professional can answer it specifically for you. I am encouraging you to ask the question! All seven topics have corresponding questions to help you assist your client in the planning ahead process. After you have gathered this information, there are those serving you that can assist in the analysis process. You can always contact AIG’s Advanced Markets team at 855-323-6923. 7 Topics Specific Questions FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

A Discovery Meeting – Summary of experience The Discovery Meeting is to document the DISCOVERY of what the client has achieved towards their goals. There are 3 Resources for Documenting the Information A Personal Fact Finder Accumulate data about the owner’s personal life and family Business Supplemental Questionnaire Learn about the business structure, players, numbers Values Based Targeted Questions Ask specific drill-down questions about top priorities from the 7 Topics Let’s summarize the fact finding experience and the resources used for data gathering. The Discovery Meeting is to document the DISCOVERY of what the client has achieved towards their goals and what they plan on doing. There are 3 Resources for Documenting the Information A Personal Fact Finder – for accumulate data about the owner’s personal life and family A Business Supplemental Questionnaire – which is used to learn about the business structure, players, numbers and more Then, a Values Based Targeted Questions – which presents specific drill-down questions about top priorities from the 7 Topics By using these resources, you will gather concise, meaningful information that will allow you to analyze all of the data and answers and reveal a plan of action to your client. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Next Steps Since this is such a critical step in determining how to craft a meaningful, actionable and acceptable plan, it is essential that you are practiced in the art of asking these questions. Select 3 business owners you know well Preferably existing clients so you already know what they care about Ask to meet with them – get feedback on a planning approach They are already your client and you are not selling anything Have them pick a priority from the 7 Topics and take them through the 3 areas of information gathering Next module: 2.3 - Manage the 4 Turning Points Since this is such a critical step in determining how to craft a meaningful, actionable and acceptable plan, it is essential that you are practiced in the art of asking these questions. Select 3 business owners you know well, Preferably existing clients so you already know what they care about. Ask to meet with them – get feedback on a planning approach. Remind them that they are already your client and you are not selling anything. Have them pick a priority from the 7 Topics and take them through the 3 areas of information gathering. The next module is called Managing the 4 Turning points. We will discover how to make 4 potential crises into opportunities following the departure of a business owner. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Questions or Comments? AIG Advanced Markets Business Development Institute BDI@aig.com 855-323-6923 If you have any comments, questions or feedback about this module or anything else regarding the AIG Business Development Institute, please contact us by email at BDI@aig.com. Or, you can call our AIG Advanced Markets team at 855-323-6923. This is Rick Katz for AIG’s Business Development Institute. Remember, the more small business owners you help, the more successful you will be. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.