1. 1 Exit Strategies For Business Owners

2. 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. 3 Overview àThe Importance Of An Exit Strategy àImproving Your Succession Plan àMaking Your Your Exit Strategy Fit Into Your Retirement And Estate Plans àWorking With Your Entire Team Of Tax, Legal And Other Professional Advisors

4. 4 What Is An Exit Strategy? àA Review Of Your Succession And Retirement Plans àIdentifies Problems Before They Arise àCoordinates Your Succession And Retirement Plans Into Your Overall Estate Plan The Importance Of An Exit Strategy

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

6. 6 Your Exit Strategy Needs To Be Reviewed àIdentify Your Retirement Goals & Objectives àEvaluate Succession Planning Options àCoordinate Your Personal & Business Planning Needs The Importance Of An Exit Strategy

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

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

9. 9 The Four Sources Of Retirement Income àSocial Security àPension & Nonqualified Plans àPersonal Savings àWork Improving Your Retirement Plan

10. 10 Business Retirement Strategies For Owners àPension Plans àNonqualified Plans àPersonal Savings àBusiness Sales Or Liquidation Proceeds Improving Your Retirement Plan

11. 11 Succession Planning Checklist 4Understand Your Options 4Review Your Plan 4Work With Your Successor 4Utilize Your Team Of Advisors Improving Your Succession Plan

12. 12 Business Options àSale àGift àLiquidation Improving Your Succession Plan

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

14. 14 The Planned Sale àProtects The Value Of The Business Investment àAvailable If There Is A Willing Buyer Or Successor àProvides Benefit To Both Parties Improving Your Succession Plan

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

16. 16 Liquidation Planning àNot All Succession Plans Will Be Successful àLiquidation May Occur During Life Or At Death àLiquidation Typically Means A Substantial Loss Of Business Values àPrudent Planning Should Prepare For The Contingency Of A Business Liquidation Improving Your Succession Plan

17. 17 Liquidation Examples 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. Improving Your Succession Plan

18. 18 Estate Planning àComplements Your Retirement & Succession Planning àHelps You Achieve Your Personal, Family, & Charitable Giving Objectives àMakes Your Exit Strategy Successful Your Overall Estate Plan

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

20. 20 This Presentation Made Possible By