1. © 2014 Exit Planning Institute www.exit-planning-institute.org The Exit Planning Process Overview of The Exit Planning Process Assessing transition Readiness Basics of Business Valuation Introduction to Value Enhancement Financial Planning for Business Owners Exit Options Analysis Implementation – Next Steps Instructor: Chris Snider, CEPA President & CEO Exit Planning Institute Aspire Plus USA (216) 392-4801 csnider@aspiremanagementinc.com

2. © 2014 Exit Planning Institute www.exit-planning-institute.org Exit planning is the conscious effort to maximize enterprise value while enabling the conversion of that ownership into personal financial freedom and peace of mind.

3. © 2014 Exit Planning Institute www.exit-planning-institute.org Maximizes the value of the business Ensures you are personally and financially prepared Ensures you have planned for the third act of your life

4. © 2014 Exit Planning Institute www.exit-planning-institute.org An Exit Plan addresses all of the… Business Personal Legal Financial, and Tax issues involved in operating a privately owned business

5. © 2014 Exit Planning Institute www.exit-planning-institute.org Exit Planning Institute’s State of Owner Readiness Survey 2013 2/3rds are not familiar with all exit options 78% have no formal transition team; 83% have no written transition plan; 49% have done no planning at all Less than 7% have a formal life after plan 40% have no plans in place to cover illness, death or forced exit 1/2 feel ownership transition plans require the company to remain profitable for plans to be properly executed, yet 86% have not taken on a strategic review or a value enhancement project 56% felt they had a good idea of what their business is worth yet only 18% have had a formal valuation in the last two years.

6. © 2014 Exit Planning Institute www.exit-planning-institute.org Death Disability Divorce Distress Disagreement

7. © 2014 Exit Planning Institute www.exit-planning-institute.org Owners are leaving $ on the table because they are focused on income generation; not focusing on enterprise value Income does not automatically translate to value Most businesses are not salable and do not make it through the second generation

8. © 2014 Exit Planning Institute www.exit-planning-institute.org  “Age Wave”  First boomers turned 65 in 2011; 10,000 turn 65 everyday; the youngest are now 50.  Own 63% of the private businesses in U.S.  80-90% of their wealth is tied up in their businesses  EPI recent survey confirms: 75% plan to transition over the next 10 years; 48% in the next 5 years  Represents a transfer of 4,500,000 businesses and over $10 trillion of wealth

9. © 2014 Exit Planning Institute www.exit-planning-institute.org

10. © 2014 Exit Planning Institute www.exit-planning-institute.org  Third Act  Goals and Objectives  Personal Purpose  Lifestyle  S.T.E.P.

11. © 2014 Exit Planning Institute www.exit-planning-institute.org  Focuses on Value Acceleration vs. Income Growth  Starts with an Assessment and Valuation – i.e. Current State  Roadmap and Benefits: Personal & Business  Deliver in 90 Day Sprints  De-Risk First  Accountability and Re-Calibrate Every 90 Days  Grow or Exit? Delay the Decision  Time and Money?

12. © 2014 Exit Planning Institute www.exit-planning-institute.org StepMin. Period 1. Prepare exit plan6 months – 1 year 2. Build value and complete tax planning1 year or more 3. Investment banking/sales process1 year 4. Transition process1 year or more Total Time3.5 years or more