1. Outline of Business Transition Planning for High Net Worth Business Owners (> $ 10 MM in Enterprise Value)
Presented by:
Sean M. Foran, B.A., LL.B.
Managing Director,
Business Transition Planning
CIBC Private Wealth Management.
CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning
9/13/2018

2. Source: Taguiri and Davis (1996)
Outline of Business Transition Planning for High Net Worth Business (« HNW ») Owners
Business Transition Planning (« BTP ») strategy for the HNW Business owner (over $10 MM in equity) is to offer them a structured process for a more rational approach to their succession planning. The internal opportunity is to build deeper relationships with business owners with a view to uncovering borrowing, investment management and insurance planning opportunities. Target client age 55 + with business sales greater than $ 10MM annually.
Are we dealing with a family business …
Or Simply a Private Company in Transition ?
Business
Source: Taguiri and Davis (1996)
Business
Shareholders
CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning
9/13/2018

3. Outline of Business Transition Planning for High Net Worth Business Owners
Parallel Planning Process with Business Owners and family members to deal with
Management Transition
Ownership Transition
working through how, with whom, when and what transition will take place.
Understand and develop the strategic potential for the business
Ensure family or owners understand investment / re-investment decision for Business Continuity.
Understand competitive position of business
Understand SWOT Analysis
Understand where to compete
Understand how to compete
CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning

4. Outline of Business Transition Planning for High Net Worth Business Owners
The needs of the business will drive the criteria for successor owners and managers.
Establish Training and Development plan for the successor manager.
Consider Valuation of business and Value driving activities.
Normalize earnings
Operationalize Goodwill
Strip out redundant assets
Diversify supplier, customer base
Consider and develop Retirement and Financial plan for the owners using Wealth Advisors.
CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning

5. Determine Exit Strategy and Tax and Estate Planning.
Outline of Business Transition Planning for High Net Worth Business Owners
Determine Exit Strategy and Tax and Estate Planning.
Deal with other succession issues:
Selecting and installing successor
Communication to Stakeholders
Co-management during transition
Maintaining employee loyalty during transition e.g. profit sharing
Exit from the company
Other pursuits
Travel
Philanthropy
CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning

6. Outline of Business Transition Planning for High Net Worth Business Owners
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CONFIDENTIAL |Sean M. Foran - Managing Director, Business Transition Planning
9/13/2018