If you own a successful closely held business and have a family, it is critical to take the time necessary to consider establishing a new plan. This plan transitions your wealth to your heirs while minimizing costs, enhancing open communication that results in greater family harmony during life and beyond while maximizing business profitability. It makes sense, and sounds easy, yet it is not.
As a Wealth Transfer Specialist since 1969 I have helped hundreds of families and businesses create their unique transition plan. I offer a proven business and estate planning process that addresses the needs of the business owner(s) while engaging all family members. The successful transition of your business to the next generation involves establishing greater family harmony, minimizing cost, and maximizing business profitability.
FBR System Wealth Transfer Planning – Overview PresentatoinChristopher Robbins
Our team has created a fundamentally different approach to family wealth transfer. We involve the business owner and his/her entire family through establishing open communication. We clarify all member’s goals and desires. Shifting the focus to the entire family, our process makes business issues easier to understand, manage, and implement while strengthening the quality of family life.
Introduction to FBR System Wealth Transfer Planning for Business SuccessionChristopher Robbins
As a Wealth Transfer Specialist since 1969 I have helped hundreds of families and businesses create their unique transition plan. I offer a proven business and estate planning process that addresses the needs of the business owner(s) while engaging all family members. The successful transition of your business to the next generation involves establishing greater family harmony, minimizing cost, and maximizing business profitability.
FBR System Educational Presentation for Wealth Transfer & Business Succession Christopher Robbins
As co-author with tom Reischl, Karl has written two books. Becoming a wealth transfer specialist helps financial, tax and legal advisors working with family owned businesses establish new wealth transfer planning skills. Planning a family & business legacy, is a guide to transferring family business wealth. This book assists family members with closely-held businesses to move beyond traditional wealth transfer planning.
Wealth Transfer for Business Succession and Estate Planning by FBR SystemChristopher Robbins
If you own a successful closely held business and have a family, it is critical to take the time necessary to consider establishing a new plan. This plan transitions your wealth to your heirs while minimizing costs, enhancing open communication that results in greater family harmony during life and beyond while maximizing business profitability. It makes sense, and sounds easy, yet it is not.
- Challenges to proposal writing
- What do funders look for?
- 10 questions every proposal should answer
- How to get to submitting successful proposals
In this webinar, we look at our turnaround experience helping financially distressed NGOs over the past 10 years. Hear about past and current case studies (with permission of our clients) and learn about the top three factors that make a turnaround successful.
As a Wealth Transfer Specialist since 1969 I have helped hundreds of families and businesses create their unique transition plan. I offer a proven business and estate planning process that addresses the needs of the business owner(s) while engaging all family members. The successful transition of your business to the next generation involves establishing greater family harmony, minimizing cost, and maximizing business profitability.
FBR System Wealth Transfer Planning – Overview PresentatoinChristopher Robbins
Our team has created a fundamentally different approach to family wealth transfer. We involve the business owner and his/her entire family through establishing open communication. We clarify all member’s goals and desires. Shifting the focus to the entire family, our process makes business issues easier to understand, manage, and implement while strengthening the quality of family life.
Introduction to FBR System Wealth Transfer Planning for Business SuccessionChristopher Robbins
As a Wealth Transfer Specialist since 1969 I have helped hundreds of families and businesses create their unique transition plan. I offer a proven business and estate planning process that addresses the needs of the business owner(s) while engaging all family members. The successful transition of your business to the next generation involves establishing greater family harmony, minimizing cost, and maximizing business profitability.
FBR System Educational Presentation for Wealth Transfer & Business Succession Christopher Robbins
As co-author with tom Reischl, Karl has written two books. Becoming a wealth transfer specialist helps financial, tax and legal advisors working with family owned businesses establish new wealth transfer planning skills. Planning a family & business legacy, is a guide to transferring family business wealth. This book assists family members with closely-held businesses to move beyond traditional wealth transfer planning.
Wealth Transfer for Business Succession and Estate Planning by FBR SystemChristopher Robbins
If you own a successful closely held business and have a family, it is critical to take the time necessary to consider establishing a new plan. This plan transitions your wealth to your heirs while minimizing costs, enhancing open communication that results in greater family harmony during life and beyond while maximizing business profitability. It makes sense, and sounds easy, yet it is not.
- Challenges to proposal writing
- What do funders look for?
- 10 questions every proposal should answer
- How to get to submitting successful proposals
In this webinar, we look at our turnaround experience helping financially distressed NGOs over the past 10 years. Hear about past and current case studies (with permission of our clients) and learn about the top three factors that make a turnaround successful.
You talked—and we listened! Last year, participants at the 2014 National Associate of Corporate Directors (NACD) Board Leadership Conference identified a list of the most uncomfortable topics for board directors. These key topics led to an article entitled Boardroom Black Holes and Taboos, an eye-opening collection of places that directors fear to tread. But is avoiding these topics really the best way to govern your board?
http://www.conferenceboard.ca/e-library/abstract.aspx?did=7075
The operating context for boards and the companies they serve is increasingly complex. Highly effective boards can't allow themselves to ignore difficult topics, or let the status quo get in the way of effective governance. Directors must also have the grace and discretion to address some topics in a way that will not risk poisoning the dynamic and discussions at the board table.
Join the article’s author Gary W. Patterson, as he summarizes the key findings and explores the areas where boards have the most difficulty. Gary explores the key black holes and taboos facing boards today, and provides suggestions for how directors can overcome some of the most challenging discussions. Attendees will receive tangible take-aways to help Chairs, Directors and senior executives that work with the board identify potential areas of concern, and how to best approach these areas so that your team is ready to tackle any issue, no matter how uncomfortable.
Webinar Highlights
In this 60 minute recorded webinar, Gary examines:
•The original 20 black holes and taboos suggested by NACD participants,
•Further analysis on the most prevalent issues,
•The need to prioritize and address common issues raised, and
•How this external process can support your boardroom desire for good governance impact and outcomes.
http://www.conferenceboard.ca/e-library/abstract.aspx?did=7075
About Gary
Gary W. Patterson, the FiscalDoctor®, helps find million-dollar blind spots: before they find you—to build sustainable profitable growth. He has worked with the Fortune 500 and methodically helped two companies reach the coveted INC 500 list. He was the global IT and supply chain re-engineering project head for HH Robertson (UK), selected a premiere site by JD Edwards. Gary is a Stanford MBA/KPMG Big 4 CPA; author of four books in the areas of business growth, strategy and risk; and recognized thought leader by “Financial Times” ExecSense presentations service.
The original article is also available to download at http://www.fiscaldoctor.com/?p=1678
Metaphoric Silos — since each employee, division or department interacts primarily within their specific “grain” silo rather than with other groups across the organization — need to be broken down to increase productivity and profitability. Mark Johnson of B2B CFO collaborates with Mary Henry of HR on Demand to produce the PowerPoint and lecture.
Change drivers
1. Disruption in the operating environment
2. Localisation & power shift to global south is a priority
3. Businesses push into sustainability
4. Grant funding is inconsistent and insufficient
5. Poverty is on the rise, again
State of Small Business – Growth and Success ReportIntuit Inc.
In an effort to better understand how small businesses approach growth and how those views impact their operations and planning, Intuit QuickBooks released the “State of Small Business – Growth and Success” report.
Check out the results to learn more!
Working for yourself shouldn’t mean the odds of success are stacked against you. QuickBooks is committed to small business success with a comprehensive set of business tools that do the hard work for you – leveraging the latest in AI and emerging technologies to create a platform that evens the odds for small business owners.
Learn about the most common questions that every proposal should answer to be successful. Our funding team uses these questions to ensure that every proposal we prepare with our NGO partners maximizes its chances for shortlisting and, ultimately, a funding award. This webinar will also offer an opportunity to discuss your proposal with members of our team.
A GOOD PARTNERSHIP SCHEME STARTS WITH IDENTIFYING THE RIGHT PARTNERS
Does the proposed partnership benefit both?
Is the partnership aligned with both partners strategies?
Do both partners have complimentary concerns, target areas or key programme users?
Do any of the exiting programmes match with each other?
TIP: Design the philanthropic partner profile to your programme / organisation with all key characteristics involved (Beliefs, values, passions, connecting life experiences, causes priority)
BETTER FUNDING MODELS THROUGH & BEYOND THE COVID-19 CRISISMzN International
Joint MzN and CONCORD Seminar:
Funding is not the No.1 priority.
Delivering your mandate is!
Funding should be mandate driven – not the other way around!
Funds-flow dictate de-facto strategy.
We therefore need to strategise your funds flow!
This is difficult at any time, but especially
during this crisis. But we can use crises to get
funding right in the “NEW NORMAL”!
Digitization acceleration why it matter for institutional funding and grants...MzN International
● In short - what do we need to build stable income streams (in a disrupted world)?
● Why digitalization?
● How do you digititalize funding?
● What does it mean to digititalize funding?
● 5 practical steps towards digitalized funding approaches
You talked—and we listened! Last year, participants at the 2014 National Associate of Corporate Directors (NACD) Board Leadership Conference identified a list of the most uncomfortable topics for board directors. These key topics led to an article entitled Boardroom Black Holes and Taboos, an eye-opening collection of places that directors fear to tread. But is avoiding these topics really the best way to govern your board?
http://www.conferenceboard.ca/e-library/abstract.aspx?did=7075
The operating context for boards and the companies they serve is increasingly complex. Highly effective boards can't allow themselves to ignore difficult topics, or let the status quo get in the way of effective governance. Directors must also have the grace and discretion to address some topics in a way that will not risk poisoning the dynamic and discussions at the board table.
Join the article’s author Gary W. Patterson, as he summarizes the key findings and explores the areas where boards have the most difficulty. Gary explores the key black holes and taboos facing boards today, and provides suggestions for how directors can overcome some of the most challenging discussions. Attendees will receive tangible take-aways to help Chairs, Directors and senior executives that work with the board identify potential areas of concern, and how to best approach these areas so that your team is ready to tackle any issue, no matter how uncomfortable.
Webinar Highlights
In this 60 minute recorded webinar, Gary examines:
•The original 20 black holes and taboos suggested by NACD participants,
•Further analysis on the most prevalent issues,
•The need to prioritize and address common issues raised, and
•How this external process can support your boardroom desire for good governance impact and outcomes.
http://www.conferenceboard.ca/e-library/abstract.aspx?did=7075
About Gary
Gary W. Patterson, the FiscalDoctor®, helps find million-dollar blind spots: before they find you—to build sustainable profitable growth. He has worked with the Fortune 500 and methodically helped two companies reach the coveted INC 500 list. He was the global IT and supply chain re-engineering project head for HH Robertson (UK), selected a premiere site by JD Edwards. Gary is a Stanford MBA/KPMG Big 4 CPA; author of four books in the areas of business growth, strategy and risk; and recognized thought leader by “Financial Times” ExecSense presentations service.
The original article is also available to download at http://www.fiscaldoctor.com/?p=1678
Metaphoric Silos — since each employee, division or department interacts primarily within their specific “grain” silo rather than with other groups across the organization — need to be broken down to increase productivity and profitability. Mark Johnson of B2B CFO collaborates with Mary Henry of HR on Demand to produce the PowerPoint and lecture.
Change drivers
1. Disruption in the operating environment
2. Localisation & power shift to global south is a priority
3. Businesses push into sustainability
4. Grant funding is inconsistent and insufficient
5. Poverty is on the rise, again
State of Small Business – Growth and Success ReportIntuit Inc.
In an effort to better understand how small businesses approach growth and how those views impact their operations and planning, Intuit QuickBooks released the “State of Small Business – Growth and Success” report.
Check out the results to learn more!
Working for yourself shouldn’t mean the odds of success are stacked against you. QuickBooks is committed to small business success with a comprehensive set of business tools that do the hard work for you – leveraging the latest in AI and emerging technologies to create a platform that evens the odds for small business owners.
Learn about the most common questions that every proposal should answer to be successful. Our funding team uses these questions to ensure that every proposal we prepare with our NGO partners maximizes its chances for shortlisting and, ultimately, a funding award. This webinar will also offer an opportunity to discuss your proposal with members of our team.
A GOOD PARTNERSHIP SCHEME STARTS WITH IDENTIFYING THE RIGHT PARTNERS
Does the proposed partnership benefit both?
Is the partnership aligned with both partners strategies?
Do both partners have complimentary concerns, target areas or key programme users?
Do any of the exiting programmes match with each other?
TIP: Design the philanthropic partner profile to your programme / organisation with all key characteristics involved (Beliefs, values, passions, connecting life experiences, causes priority)
BETTER FUNDING MODELS THROUGH & BEYOND THE COVID-19 CRISISMzN International
Joint MzN and CONCORD Seminar:
Funding is not the No.1 priority.
Delivering your mandate is!
Funding should be mandate driven – not the other way around!
Funds-flow dictate de-facto strategy.
We therefore need to strategise your funds flow!
This is difficult at any time, but especially
during this crisis. But we can use crises to get
funding right in the “NEW NORMAL”!
Digitization acceleration why it matter for institutional funding and grants...MzN International
● In short - what do we need to build stable income streams (in a disrupted world)?
● Why digitalization?
● How do you digititalize funding?
● What does it mean to digititalize funding?
● 5 practical steps towards digitalized funding approaches
(א.א. יפית דירות נופש 054-4421444)
המרינה - פסק הדין
שלום רב, מצורף פסק הדין שניתן היום על ידי כב' השופט ד"ר עודד מודריק מבית המשפט לעניינים מנהליים בת"א, בעתירות המרינה בהרצליה.
Business Succession Planning - About The Rawls GroupThe Rawls Group
Since 1973, The Rawls Group has been passionate about helping business owners achieve their succession goals. Nationally recognized, The Rawls Group specializes in addressing the issues that impact the continued success of a business legacy. By partnering with our clients and their other advisors, we work to develop a plan that will perpetuate the leadership, culture, performance, and relationships that are key to business success.
Slides used by Daniel Haines, of Crowe Clark Whitehill, at the ‘Locally trusted organisations and Big Local partnerships’ learning and networking events. The events took place on Friday 25 November and Wednesday 7 December 2016.
Family owned businesses account for between 80-90% of all businesses. In the winery industry, possibly even more. As this industry has grown rapidly in recent year, those businesses are approaching succession. Here are some strategies to employ to keep your enterprise thriving.
The field of consulting is crowded and getting more so each day. The way to win consulting assignments with companies you want to work with is by focusing on them and their needs, not yours. Here are 7 steps to winning and keeping consulting projects.
Study of Advisory Success defines what success means for advisors in today’s environment and highlights the most salient issues facing advisors. Pershing’s inaugural study found that the most successful advisors anticipate what will lead the next generation of advisors. This year’s study finds that successful advisors adapt to client communications and client expectations.
How to transform a family business: insights from the trenches Browne & Mohan
Working with many family businesses across industries, we realize they face a high rate of failure because of their inability to distinguish between family and business issues and build structures and process that protect value across generations. In this paper, we share governance process and systems that are a must for family businesses to preserve and sustain economic and social values across multiple generations.
A business Succession and Exit Planning can provide an immediate increase in business value. In addition, our Succession and Exit Plans preserve the value of the business and provides protection for the business, the owner and their family. A well developed Succession and Exit Planning allows a business owner to retain control of their company regardless of what the future may bring.
In our Succession and Exit Plans, we also explore exit strategies and create tactics to achieve a business owners exit goals. We set goals and groom a business for transfer (sale). We explore the effect of income, capital gains, estate and gift taxes, as well as addressing the particular complexities of a transfer (sale) to third parties, family members or key employees.
For more information go the the following website: www.fortunebta.com
Using Portfolio Management to Improve Business InvestmentCarolyn Reid
Structured Portfolio Management is very valuable to businesses in maximizing their Return on Investment. Portfolio Management ties investments to strategy to ensure the organization is realizing it's expected benefits and achieving it's strategy.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
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5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Wealth Transfer for Business Succession and Estate Planning
1. Karl R. Bareither, CLU
Wealth Transfer Specialist
Ph: 805-595-2089 Email: karl@fbrsystem.com
Educational Wealth Transfer Planning Presentation
2. Family & Business Objectives
The FBR System
A holistic approach to planning,
not transactional
Treats wealth as more than just
property
Recognizes the importance of
open family communication to
the planning process
Acknowledges that planning is a
journey, not a destination
4. Family Business Statistics
88% of current family business
owners believe the same family or
families will control their business in
five years, but succession statistics
undermine this belief...
•Only about 30% of family and
businesses survive into the second
generation
•12% are still viable into the third
generation
•only about 3% of all family
businesses operate into the fourth
generation or beyond1
1
Family Business Research Institute
5. The Need For More Effective Planning
Statistics reveal a disconnect
between the beliefs and reality.
This information indicates lack of
family business succession
planning.
This was confirmed by our own
survey which indicated the
importance of including all family
members.
6. Wealth Transfer Challenges
The ownership succession planning
issues that seem to be the most common
areas of contention or omission in family
business succession planning are:
1.Technical mistakes
2.Planning in a vacuum
3.Leaving the business to the surviving
spouse
4.The challenge of treating children
equitably
8. The Family and Business Renewal Model
Phase I
Examine
Current Plan
Phase II
Develop
New Plan
Phase III
Present &
Implement Plan
The FBR
System is
a proven
success
model that
has saved
business
owners
millions of
dollars
while
preserving
the family
business.
1
2
3
4
5
67
8
9
Your
Wealth
Transfer
Plan
9. Interview each person individually
Business family members and
spouses
Passive family members and
spouses
Key employees
Step 1: Individual Family Interviews
Clarify personal goals, concerns and
intentions of each family member
10. Step 2: Determine Family Objectives
Identify family and business
expectations and concerns.
11. Review existing owner and
business documents:
Financial Statements
Income Tax Statements
Life Insurance Policies
Business Agreements
Wills
Trusts
Step 3: Analyze Current Plan
12. The Wealth Transfer Specialist will:
Completion of Phase I
Understand the existing
wealth transfer plan
Understand the goals, concerns,
hopes and dreams of each
individual family member
13. How, when and to whom will
leadership of the business be
transferred?
Step 4: Examine Transfer Options
Wills
Trusts
Gift
Buy-sell agreement
Reorganization
Sale (family members or
non-family buyer)
Charitable arrangement
We examine
various tools
and techniques
to determine
which ones
should be
incorporated
into your
personal plan.
14. Meet with trusted owner
advisors, examine options,
and draw conclusions
Step 5: Seek Advisor Input
We work
collaboratively
with your
existing trusted
advisors – we
value the work
they’ve done
and the
knowledge they
have shared
with you.
15. Step 6: Develop the New Plan
Determine wealth transfer
options
Organize information
Seek to satisfy both family and
business concerns
Promote decision-making that
is both sensitive and pragmatic
16. The WTS
Completion of Phase II
Creates a written report
detailing the new plan
Determines the most viable
options for transferring the
family’s wealth
17. Step 7: Present New Plan
The Family Retreat:
Present new plan
Examine business
financial, legal and tax
issues and options
The art of
planning
and
facilitating
a family
retreat is
part of the
FBR
System
18. Consider viable options for providing needed liquidity
Sale of assets
Loan
Insurance
Sinking fund
Step 8: Consider Liquidity Options
19. Obtain agreement to
implement plan
Complete financial, tax,
and legal requirements
Monitor plan progress
Step 9: Implement and Monitor Plan
20. The Family and Business Renewal Model
Phase I
Examine
Current Plan
Phase II
Develop
New Plan
Phase III
Present &
Implement Plan
1
2
3
4
5
6
8
9 Your
Wealth
Transfer
Plan
7
The FBR
System is a
proven
process that
has been
successfully
used with
hundreds of
business
owners.
21. What are the costs and benefits?
Cost dependent upon:
scope of work
number of family members
complexity of business
Expectations
Defining Your Investment
Free initial interview
Planning fee is established
22. 1. It’s a family affair not just an owners affair
not just a transaction
not closed and secretive
not a telling one
not exclusion
not closing discussion
1. It’s a family affair
2. It’s a process
3. It’s an open agenda
4. It’s an asking format
5. It enhances family life
through inclusion
6. It’s a way to open family
dialogue
12 Principles of Family and Business Renewal
23. 7. The greatest resource
is people
7. The greatest resource
is people
not plant, equipment
and real estate
not one at the expense
of the other
not a whitewash
not excluding anyone
who may differ
not a free-for-all
or anger tirade
not a risky venture
8. It deals with both external
and internal matters
9. It ensures an examination
of all issues
10. It seeks input from
owner advisors
11. It uses an objective
planner as a facilitator
to plan a family retreat
12. It assures a money-back
guarantee if not totally
satisfied
12 Principles of Family and Business Renewal
(This slide can be customized for the individual WTS.)
Good evening, ladies and gentlemen. My name is ________________. Welcome to our presentation; Planning a Family & Business Legacy.
Let me introduce myself more fully (discuss biographical information as appropriate).
Our subject this evening is how to move beyond traditional business succession planning and secure the future of your family’s business by using a process called Family and Business Renewal.
The FBR System was developed by Karl Bareither to help family owned businesses successfully transfer their wealth.
READ SLIDE
What is your definition of wealth?
Most people identify wealth as money, property or other tangible items. In fact, wealth can include many things – including our health and the love and support of family.
(Use this opportunity to share a personal story about yourself, your family or other loved ones that will help your audience relate to you as a caring human being. Demonstrating your willingness to share personal information will help audience members become comfortable sharing their personal experiences with you as the presentation progresses.)
According recent studies 88% of current family owned business believe that the same family or families will control their business in five year, but as you can see succession statistics differ.
Does it seem strange to you that with all the attorneys, accountants and financial advisors available to business owners that so few are able to keep the business in the family beyond the first generation? Obviously, there is a failure somewhere in the planning process.
There is a need for more effective planning – research indicates that family business failures can essentially be traced to one factor: an unfortunate lack of family business succession planning.
So the question really is,
“Why are family business owners reluctant to plan for succession?”
I believe that the root cause of the failure to plan springs from the family dynamics themselves. Lack of communication, dysfunction within the family - including things like alcohol and substance abuse - paralyzes the wealth transfer planning process.
Family business owners must understand that the reason so many family businesses fail is because of family issues, not business issues!
Here’s an interesting point that many entrepreneurs don’t realize. Some of the characteristics that helped them create a successful business in the first place work against them when it come to planning for preserving the business.
For example, secrecy may be important early on in order to protect the business as it is getting started. When planning for continuation, however, openness is required so the needs of everyone involved can be taken into consideration during the planning.
Control is important initially because the entrepreneur is responsible for virtually every aspect of the start-up business. When planning for continuation, it is necessary to share control for the long term good of the business - something that might be difficult for the entrepreneur.
The entrepreneur must wield the power in the business early on in order to make progress quickly. In long-term planning, knowledge replaces power.
The entrepreneur may also be more autocratic in dealings with associates, employees and family members in order to facilitate efficiency. The planning process, however, requires collaboration.
Also, the planning process when focused on the entrepreneur alone, centers on what I like to call “matters of the head and ego.” Involving the family in the process expands the focus to include “matters of the heart and spirit.”
Here are the three phases and nine steps in Family and Business Renewal wealth transfer process.
In Phase I we determine the objectives of the individual family members as they relate to the business and examine the existing wealth transfer plan. This process consists of three stapes which we’ll examine more closely in a moment.
In Phase II we develop a new wealth transfer plan based on the needs of all family members and business concerns - again using three distinct steps.
In Phase III we present the new plan to the entire family in a retreat setting where issues and concerns can be resolved to everyone’s satisfaction. The process ends when a workable plan has been implemented and a process put in place to monitor its ongoing success.
The phases and steps result in three major benefits to business owners. We’ll discuss them in more detail next.
Step 1 is to develop an understanding of what each individual member of the family expects of the business. Each individual is interviewed in order to better understand what the expectations and goals of family members and key employees are so these can be taken into account when developing the new wealth transfer plan.
To do this, each family member must be interviewed in-depth. Your participant’s booklet includes a copy of an interview guide. These are the key questions asked of each individual during the confidential interviewing process.
Every family member must be interviewed - including spouses and in-laws - whether they are active in the business or not. Non-family employees who are key to the success of the business are also interviewed.
The goal is to clarify each individual’s goals, concerns and intentions with regard to the business.
The process calls for objective listening skill on the part of the interviewer so as to obtain honest input.
Step 2 is to determine the family objectives.
This is accomplished by studying the responses from the individual family member interviews and using the information to identify goals, needs and dreams of all family members. The goal is to compile an accurate profile of the expectations the various family members have for the business and its future.
Step 3 is to analyze the existing business continuation plan.
It begins by gathering any personal or business documents related to planning that has already been completed. In order to be effective as the WTS, I must fully understand how these documents work and what they accomplish. The business owner can be extremely helpful by recalling the original intent you had when these documents were created.
Remember that every business has a continuation plan. If the owners have not taken the time to develop one, the state intestacy laws will determine the business succession plan. The point to ponder is “Do you want to develop your own business continuation plan, based on thoughtful consideration, or would you rather wait and see what the state government has in mind for your business?”
After completing Phase I, I will have a thorough understanding of the goals, concerns, hopes and dreams of all the family members as they relate to the business. This understanding will assist the business owner in making more informed decisions.
I work with the business owner and other family business advisors to make certain I have a clear picture of the existing plan before proceeding with the new wealth transfer plan.
Once the family objectives have been determined and the current wealth transfer plan documented, Phase I of the process is now completed.
Step 4 in Phase II is to examine the ways in which the transfer of business ownership might be accomplished.
These are the typical transfer techniques families use:
Will and trusts - ownership of the business can be arranged using one of these legal instruments.
Gift - shares in the business interest can be gifted to other family members.
Buy-sell agreement - you can arrange for the transfer of ownership through a formal buy-sell agreement drafted by an attorney.
Reorganization - in some cases the business can be reorganized into a different structure to facilitate ownership transfer.
Sale - installment sale to provide retirement income for business owner.
Sometimes, if philanthropy is a goal, gifts to charities can be incorporated into wealth transfer planning resulting in opportunities for personal satisfaction and encouragement of philanthropy by other family members. Charitable planning can also result in substantial income and/or estate tax savings.
The various techniques must be examined at this point in order to determine which of these alternatives should be considered for the new plan.
Developing a wealth transfer plan involves a high degree of expertise. In addition to my own skill and experience in this area, I also meet with the team of trusted owner advisors to take advantage of their expertise. In addition, I want to learn the history of the current plan to understand why it was developed as it was. I will use all this information and the input from the other advisors to develop a new plan taking into account all the information gathered during the individual family member interviews.
Each member of the team has his or her responsibilities. The attorney must draft legal documents, the accountant examines the tax aspects and the financial advisor is responsible for financial objectives. I act as the quarterback of the team, if you will, coordinating meetings and keeping the planning process moving.
This is the essence of the new plan.
The options available must be determined and recommendations complied into a new plan.
The new plan must seek to satisfy all family as well as business concerns.
The goal of the planning process is to promote decision-making that is both sensitive to family members and their issues as well as pragmatic.
Your participant’s booklet includes a form that can be used to capture the overall plan design.
At the conclusion of Phase II, the WTS will:
Have determined the most viable options for transferring the family’s wealth to the next generation.
Have created a written report that details all the elements of the new plan.
The responses to the three questions will guide the discussion of the old and new plans. The goal is to get everyone’s goals, expectations and concerns out in the open where they can be dealt with. As the new plan is revealed and discussed, each family member will come to understand how it addresses their individual needs or they will know the reasons why it cannot.
The presentation of the new plan includes a discussion of the financial, legal and tax issues that affect the design. This material is discussed in “layman’s” terms and only to the extent it is useful to help everyone understand why the plans has been developed in this form.
I avoid jargon and complicated technical terms.
Lack of liquidity for estate and business purposes is usually the principle need for the typical capital intensive business owner. Failing to provide for it will likely cause the plan to fail. All options for providing the liquidity needed by the plan must be considered. These usually involve insurance and/or other financial products.
Again, while these topics can be technical in nature, each is discussed in “layman’s” terms until everyone agrees that they understand how the solutions work and what are the best alternatives.
The new plan is discussed and questions answered until there is general agreement that the best possible solutions have been developed. The retreat ends with the family’s agreement to implement the plan.
Implementation includes completing all the necessary financial, tax and legal requirements.
The plan might also include other implementation aspects such as a development plan for one or more of the future owners.
Once the plan is implemented, it must be tracked and periodically reexamined to make certain it is working and remains in the best interest of everyone involved.
Here again are the three phases and nine steps in Family and Business Renewal wealth transfer process.
In Phase I we determine the objectives of the individual family members as they relate to the business and examine the existing wealth transfer plan. This process consists of three stapes which we have discussed.
In Phase II we develop a new wealth transfer plan based on the needs of all family members and business concerns - again using three distinct steps.
In Phase III we present the new plan to the entire family in a retreat setting where issues and concerns can be resolved to everyone’s satisfaction. The process ends when a workable plan has been implemented and a process put in place to monitor its ongoing success.
Most business owners want to get to the bottom line - what is this going to cost?
Well that answer, as you might guess, depends upon the scope of the plan, the number of family members involved in the interviewing and the complexity of the business.
The entire fee for this service depends upon the scope, size and complexity of the business and the planning involved.
The actual fee will be determined during a free initial interview. Assuming the Family and Business Renewal process is a feasible option for your business, you and the specialist will negotiate a fee and capture it in a formal, written agreement.
However, there may be instances when the No fee option is appropriate. For example: if it is a simple transaction with instructions to sell the business on the owners death; a small service business; a family owned business with no heirs interested in being involved in the business or the business owner doesn’t want to inform family of succession and estate planning strategy until the owners demise.
Fee is also dependent upon your expectations – for example: if you want a written report; if you want to include all family members, or if you want to involve your other advisors.
These are the 12 principles of the Family and Business Renewal process.
At its core is the recognition that wealth transfer planning is a family affair - not just an owner’s affair.
The planning is an ongoing process, not a one-time event.
The planning agenda is completely open - everyone’s opinion matters and all input is considered.
The key to achieving the open exchange of information is that the process requires asking, not telling.
It has the potential to not only protect the family’s wealth, but also enhance family life through inclusion - not exclusion.
It’s a way to open the family dialogue, benefiting both the business and family relationships - as opposed to a process that closes off discussion.
The Process underscores the value of individuals by recognizing that a business’ greatest resource is its people - not the plant, equipment and real estate.
It deals honestly with matters both internal and external to the business - but not with one at the expense of the other.
It ensures examination of all important issues without whitewashing over any of them.
It includes input from all of the owner’s advisors - including those who might differ - to assure that all viewpoints are considered and all alternatives explored
It utilizes a trained, objective person as a facilitator to plan the family retreat so it does not become a free-for-all or deteriorate into an anger tirade.
It assures a money-back guarantee if not totally satisfied with the results of the process.
We hope this conversation is the beginning of a relationship – we encourage you to make comments and ask questions. Our goal is to have ongoing discussions.