If you have one conversation per month with a business owner and submit the valuation information. If your follow up skills and closing skills are just equal to the national average, you will create an additional $50,000 of revenue this year.

1. Business Owner and
Executive Solutions
Kelly M. Bennett, CLU, ChFC, CLF
Regional Vice President – BOES
Principal Financial Group
Become a Pro at Opening Business Cases…and Triple Your Closing Ratio

2. General business market facts
Market Sizing:
• 5.7 million business owners with employees in the U.S.1
• 25% are affluent of which 12% are super affluent2
• 84% of business owners say they know they need to do
succession and/or retirement planning
1 U.S. Census Bureau, 2007 Survey of Business Owners
2 LIMRA Small Business Owner: 2009 study
For producer and advisor information and education only. Not for use in sales situations.

3. Closely-held business market facts
• Family-controlled companies account for 78% of the
nation’s job creation, 60% of its employment, and over
50% of its gross domestic product.
• By 2030 (now 15 years), $4.8 trillion of net worth will be
transferred and $10.4 trillion by 2040.1
• The U.S. Small Business Administration estimates that
at any given time, 40% of businesses are facing the
issue of transfer of ownership and control.
1 Family Firm Institute, 2009

4. Family business market facts
• Succession Planning
– Only 36% of family businesses survive to second generation
and 19% of those to the third generation.1
– Nearly half (47%) of the firms surveyed (of 1,600 companies)
don’t have a succession plan in place.1
• Wealth Transfer
– Only 61% of respondents think they have sufficient resources to
divide assets fairly among family members.1
• Business Protection
– 62% haven’t made provisions for dealing with a shareholder or key
employee who gets seriously sick or dies.1
1 PwC Family Business Survey 2010/2011

5. Needs for Owners and Executives
• Retirement funds – Do I have enough?
• Healthcare – How will I pay for it when I retire?
• Survivor needs –What if I die too soon?
• Will I have financial security in today’s economy?
• Specific business owner issues:
– When can I exit my business?
– Will my kids be able to take over?
– Will it sell for what it’s worth?
– How can I avoid huge taxes?
– Can it survive without me?

6. The challenge
• Business owners are top clients
• Business solutions may not be your specialty
• How can you provide the resources and solutions
without totally disrupting your current business? (stay
tuned…and I will show you the easiest way to open business
cases that you have ever seen!)
For producer and advisor information and education only. Not for use in sales situations.

7. The opportunity
• Meet clients’ needs
• Deepen relationships
• Sales opportunities
10% vs 10x
For producer and advisor information and education only. Not for use in sales situations.

8. Service before, during and after the sale
Before During After
• Broker Sales Ideas
• Client Marketing
Materials
• Priorities Checklist
• Complimentary
Informal Business
Valuation
• Complimentary
Buy-Sell Review
• Access to
Advanced
Solutions staff for
technical support
• Point of sale assistance
• More than 30 unique plan
designs
• Customized proposals
showing multiple
financing options
• Products and underwriting
for the business market
(including GI/SI on all
permanent products)
• Business Markets
Administration -
comprehensive plan-
level services
• Annual employee and
employer reporting
• Online access
• Economic benefit &
101j reporting
• Over 30 plan types,
12,000 plans on the
books, serving more
than 36,000
participants
For producer and advisor information and education only. Not for use in sales situations.

9. Need for Business Planning
Knowing the value of the business, along with a properly
structured buy-sell plan, and proper funding/protection can
help:
• Create a market for the business when an owner exits
• Ensure retirement income is in place
• Minimize discord among owners
• Prevent unwanted transfers
• Fix the value of the business interest for estate tax
purposes (formal valuations)
• Provide the family with liquidity to maintain their standard
of living
For producer and advisor information and education only. Not for use in sales situations.

10. Opening Business Cases
The Business Planning
Fact Finder (RFP)
Business Valuations
Buy-Sell Reviews
Business Continuation Proposals
Business Priorities
For producer and advisor information and education only. Not for use in sales situations.

11. Why use our
Business Planning Services?
• A way to open a case with a Business Owner
• Potential Outputs
– An Informal Business Valuation
– A Review of Major Provisions of the Buy-Sell/Funding
– A Business Continuation Proposal
• A Starting Point for discussions with tax and legal advisors
– To identify issues or
– Confirm the agreement meets current objectives
• Opens door to other planning opportunities (as may also be
uncovered by the Business Priorities Checklist)

12. Business Planning Fact-Finder
For producer and advisor information and education only. Not for use in sales situations.

13. Informal Business Valuation Services
• The business is generally the owner’s most valuable
asset.
• The Principal Financial Group offers complimentary
informal business valuations
• This can help start the planning process and open
multiple sales opportunities for you

14. Business Valuation:
The Process
• Collect Documents 
• Review the Customized
Report
• Discuss and Review
Highlights and
Recommendations with:
– The Business Owner
– Tax and Legal Advisors
COLLECT from owner and
PROVIDE to BGA:
• A COMPLETE Business
Planning Fact-finder – and Key
Employee census if applicable
• Most recent three years of
FINANCIALS (tax returns or
company balance sheet)
• 5-7 day turnaround
For producer and advisor information and education only. Not for use in sales situations.

15. Valuation Output
For producer and advisor information and education only. Not for use in sales situations.

16. Business Planning Fact-Finder
For producer and advisor information and education only. Not for use in sales situations.

17. Buy-Sell Agreements
• Accomplish an orderly transfer of a business interest
• Common triggering events:
– Death
– Disability
– Bankruptcy/Insolvency
– Divorce
– Termination of Employment (voluntary and involuntary)
– Retirement
• Principal offers complimentary Sample Agreements and a
proposal for how to get one implemented

18. Business Continuation Proposal
For producer and advisor information and education only. Not for use in sales situations.

19. Business Planning Fact-Finder
For producer and advisor information and education only. Not for use in sales situations.

20. Buy-Sell Review:
The Process
• Collect Documents 
• Review the Customized
Report
• Discuss and Review
Highlights and
Recommendations with:
– The Business Owner
– Tax and Legal Advisors
COLLECT AND PROVIDE:
• COMPLETED Business
Planning Fact-finder –
including ENTITY TYPE &
OWNER/Key Employee info
• Existing AGREEMENT(s)
• Existing INSURANCE
• 15-20 day turnaround
For producer and advisor information and education only. Not for use in sales situations.

21. Reports and Proposals
For producer and advisor information and education only. Not for use in sales situations.

22. What Happens as a Result
of this Simple Process?
• OK…so my client needs a buy-sell agreement, and
maybe some term insurance to make sure it’s
funded…(yawn)
• WAIT A MINUTE…there is so much more at stake!
– “My business wasn’t worth what I thought it might be…”
• The over-valued business
• The under-valued business
For producer and advisor information and education only. Not for use in sales situations.

23. When the Owner OVER-values
the Business
• Remember that the business typically represents the
owner’s most significant retirement resource
• What needs persist if they wake up and learn their
retirement account is worth half what they thought it was
worth?
– Put more in my 401(k)?
– Add another “retirement plan”?
– How can I play catch-up, but discriminate/provide for only me/us
(owners)?
For producer and advisor information and education only. Not for use in sales situations.

24. When the Owner UNDER-values
the Business
• Will my partner or family members be short-changed?
• How do I make sure that the business STAYS worth the
amount I underestimated?
– Key people are often responsible for amounts higher than “book
value”
– I must provide them incentive to stay…at least until the time I am
ready to sell
– Are there better alternatives to cash in today’s environment?
For producer and advisor information and education only. Not for use in sales situations.

25. Case Study
For producer and advisor information and education only. Not for use in sales situations.

26. Business Planning Fact-Finder

27. Principal Financial Group
BOES Customer Summary
• Industry classification is concentrated in:
– Professional, Scientific, & Technical Services
– Construction
– Manufacturing
• The most prevalent entity type is C-Corporation
• The majority of plans are sold to companies with more than 11 years
in business
• Most companies that buy these plans have between 11-99
employees
• Sales typically fall within the $1-$5 million in annual gross revenue

28. Concept Decision Grids

29. Concept Blueprints

30. Putting it All Together…
• Valuation or Priorities Checklist indicates need in key
planning area(s)
– Business Protection (Key Person)
– Supplemental Retirement
– Business Continuation/Exit Planning
• Decision Grid for key areas can be used to arrive at the
MOST appropriate concept solution within that category
• Resulting Concept Blueprint can be used for
sale/implementation from A to Z

31. Q & A ?
For producer and advisor information and education only. Not for use in sales situations.

32. Thank you

33. Disclosures
While this communication may be used to promote or market a transaction or an idea that is
discussed in the publication, it is intended to provide general information about the subject matter
covered and is provided with the understanding that The Principal is not rendering legal, accounting,
or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal
Revenue Code. You should consult with appropriate counsel or other advisors on all matters
pertaining to legal, tax, or accounting obligations and requirements.
Insurance products from the Principal Financial Group® (The Principal®) are issued by and plan
administrative services are provided by Principal National Life Insurance Company (except in New
York) and Principal Life Insurance Company. Securities offered through Princor Financial Services
Corporation, 800/247-1737, member SIPC. Principal National, Principal Life and Princor® are
members of the Principal Financial Group, Des Moines, IA 50392.
No part of this presentation may be reproduced or used in any form or by any means, electronic or
mechanical, including photocopying or recording, or by any information storage and retrieval system,
without prior written permission from the Principal Financial Group.
Copyright ©2011 Principal Financial Services, Inc.
BB10361 I t10122901mh
For producer and advisor information and education only. Not for use in sales situations.