Succession and Exit Planning: A Holistic Approach January 16, 2019 - - PowerPoint PPT Presentation

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Succession and Exit Planning: A Holistic Approach January 16, 2019 - - PowerPoint PPT Presentation

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Succession and Exit Planning: A Holistic Approach January 16, 2019 Webinar starts at 12 PM CT Brian Gensch Todd Richardson Daniel White Vice President, Vice President, Consultant, Presented by Wealth Management Corporate Finance

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Succession and Exit Planning:

A Holistic Approach

January 16, 2019 Webinar starts at 12 PM CT Presented by

Brian Gensch Vice President, Wealth Management Daniel White Consultant, Organizational Development Todd Richardson Vice President, Corporate Finance

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Administration

If you need CPE or HR credit, please participate in all polling questions throughout the presentation.

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Administration

A recording of today’s webinar will be emailed for your reference or to share with others.

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Administration

For best quality, call in by phone instead of using your computer speakers.

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Administration

To ask questions during the presentation, use the questions box on the right side of your screen.

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Administration

Please provide your feedback at the end of today’s presentation.

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Administration

BRIAN GENSCH

VICE PRESIDENT WEALTH MANAGEMENT

  • Certified Financial Planner™ Practitioner
  • Master’s in Family Financial Planning
  • More than 10 years of experience in open-

market investments and planning Focus on private wealth management and leads the comprehensive wealth plan service

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Administration

TODD RICHARDSON

VICE PRESIDENT CORPORATE FINANCE

Certified Public Accountant 25 years of private industry experience with a background in real estate, retail, hospitality and manufacturing Expertise in strategic planning, financial modeling and retail mergers and acquisitions

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Administration

DANIEL WHITE

CONSULTANT ORGANIZATIONAL DEVELOPMENT & FAMILY BUSINESS

Expertise in strategic planning, leadership development, family business consulting and employee engagement Experience teaching masters-level courses in

  • rganizational development
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Today’s objectives

1) Identify the key areas to consider in succession and exit planning. 2) Understand a holistic view of succession and exit planning. 3) Learn the process for a successful business transition.

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Polling question #1

Please answer for continuing education credit

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Succession planning truths

  • All closely held businesses must transition ownership
  • Ownership transition and management transition must

both be addressed

  • Only 40% of owners have a business succession plan

in place*

  • 47% of business owners who do not have a

succession plan believe it is necessary

* Nationwide Small Business Owner Study conducted by Harris Poll, February 7, 2017

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Keys to a successful exit

Personal readiness Business readiness Marketability Family readiness

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What success looks like

  • Maximized business value
  • Set up for future success
  • Secured financial future
  • Purpose for the future
  • Healthy relationships
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BRIAN GENSCH

VICE PRESIDENT WEALTH MANAGEMENT

  • Certified Financial Planner™ Practitioner
  • Master’s in Family Financial Planning
  • More than 10 years of experience in open-

market investments and planning Focus on private wealth management and leads the comprehensive wealth plan service

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Brian’s impact

Personal readiness Business readiness Marketability Family readiness

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Hypothetical illustration

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Personal readiness & family readiness

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Creating a financial pathway

  • Entering distribution phase
  • Maneuvering through taxes
  • Understanding plan risks
  • Defining what legacy to leave
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Entering distribution phase

Financial transaction details

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Entering distribution phase

Importance of value received

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Entering distribution phase

Philanthropic desires

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Creating a financial pathway

  • Entering distribution phase
  • Maneuvering through taxes
  • Understanding plan risks
  • Defining what legacy to leave
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Maneuvering through taxes

Projecting out tax payments

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Maneuvering through taxes

Asset relocation planning

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Creating a financial pathway

  • Entering distribution phase
  • Maneuvering through taxes
  • Understanding plan risks
  • Defining what legacy to leave
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Understanding plan risks

Market returns

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Understanding plan risks

Company health

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Creating a financial pathway

  • Entering distribution phase
  • Maneuvering through taxes
  • Understanding plan risks
  • Defining what legacy to leave
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Defining what legacy to leave

Business-related children vs. non-business related children

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Defining what legacy to leave

Access vs. amount

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Creating a financial pathway

  • Entering distribution phase
  • Maneuvering through taxes
  • Understanding plan risks
  • Defining what legacy to leave
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Polling question #2

Please answer for continuing education credit

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Defining your purpose

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Sugar rush at retirement

  • Happiness
  • Wellbeing
  • Life satisfaction
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Sugar crash of retirement

  • Happiness
  • Wellbeing
  • Life satisfaction
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The value of actively doing

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The value of actively doing

Redefining your

  • Purpose
  • Meaning
  • Identity
  • Healthiness
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TODD RICHARDSON

VICE PRESIDENT CORPORATE FINANCE

Certified Public Accountant 25 years of private industry experience with a background in real estate, retail, hospitality and manufacturing Expertise in strategic planning, financial modeling and retail mergers and acquisitions

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Todd’s impact

Personal readiness Business readiness Marketability Family readiness

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Business readiness

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Business readiness – overview

  • The reason for selling
  • The value of the business
  • The timeline for a potential sale
  • r transition
  • “Getting your ducks in a row”
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Why do you want to sell your business?

  • Need for liquidity
  • Health issues
  • Transition to next generation
  • Other
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What is your business worth?

  • Business valuation services
  • Proceed with caution
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Polling question #3

Please answer for continuing education credit

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How long will you wait?

“Never leave till tomorrow that which you can do today.”

  • Benjamin Franklin
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Are your ducks in a row?

  • What story do your financial

statements tell?

  • Should you consider an audit?
  • Capture the hidden value in your

business

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Marketability

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Marketability

  • Financial performance
  • Size and concentration of sales
  • SWOT
  • Location
  • Buyer options and availability
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Can you show the buyer the money?

  • How predictable are your business
  • perations?
  • How transferrable is the legacy

knowledge?

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Sales mix and customer concentration

  • How diversified are your product
  • fferings?
  • How diversified is your customer

base?

  • Does your business have exposure

to more than one industry?

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Do you know your SWOT?

What are your company’s:

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
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Location, location, location!

  • Ability to market products
  • Supplier availability
  • Employees
  • Total cost of operations
  • Taxes
  • Regulations
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What are your options?

  • Strategic buyers
  • Management
  • Minority ownership
  • Family
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DANIEL WHITE

CONSULTANT ORGANIZATIONAL DEVELOPMENT & FAMILY BUSINESS

Expertise in strategic planning, leadership development, family business consulting and employee engagement Experience teaching masters-level courses in

  • rganizational development
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Daniel’s impact

Personal readiness Business readiness Marketability Family readiness

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Personal readiness

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Personal plan for the future

Learning to “let go”

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Business readiness

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Strong leadership team

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Strategic plan

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Governance

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Family readiness

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Polling question #4

Please answer for continuing education credit

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Miscommunication

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Family meetings

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Family governance

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Family succession planning

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Summary

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Holistic view

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Keys to a successful exit

Personal readiness Business readiness Marketability Family readiness

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Succession guide

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What success looks like for Suzy

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Useful resources

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Free online assessment

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Process document

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Next steps

  • Define personal wealth goals
  • Determine business financial health
  • Business valuation
  • Figure out management succession
  • Plan for the future – personal & business
  • Address family issues
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Polling question #5

Please answer for continuing education credit

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Thank you for attending

Check out our other webinars! AGHUniversity.com Questions NOT related to today’s content? taylor.bott@aghlc.com

DANIEL WHITE

CONSULTANT, ORGANIZATIONAL DEVELOPMENT & FAMILY BUSINESS

Daniel.White@aghlc.com 316.291.4017

linkedin.com/in/danielwilliamwhite twitter.com/dw_white

TODD RICHARDSON

VICE PRESIDENT, CORPORATE FINANCE

Todd.Richardson@aghlc.com 316.291.4041

linkedin.com/in/todd-richardson- 20b0134b

BRIAN GENSCH

VICE PRESIDENT, WEALTH MANAGEMENT

Brian.Gensch@aghwealth.com

316.291.4006

linkedin.com/in/briangenschcfp