inknowvision may 2014 buy-sell problem solver ppt

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InKnowVision, LLC \

InKnowVision

The Buy-Sell Problem Solver

A Turnkey Solution for Professionals Who Serve Business Owners

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Are you finding: • Hard to differentiate • Competition harder to develop new business • Business owners are very hard to engage • Comprehensive planning scares clients • Need to systematically increase revenues fast





1. Prospect Already Has One • You have to wait until the incumbent dies, or until client is disappointed • You have to be there when it happens

2. Prospect Doesn’t Need One Until Something Happens • You have to be there when it happens • They already have a Guy

3. Prospect Can Do It Themselves, Until It Gets Too Complex • They rarely know when that is • You have to be there when it happens

4. They Can Use You Right Now • Whatever’s in place now, probably needs improvement & updating • Opportunity is there, but it doesn’t occur to them that they need you • You have to be there when it does

5. There Are Many Professionals Who Do What You Do • There’s a lot of competition

6. The Most Desirable Prospects Get Approached All the Time • By all kinds of Advisors and Vendors • From all sides





There is another proven strategy: A story is told that sometime in the 13th century, an army tried to conquer a fortified city for 10 years with no success. During the final battle, the attackers retreated in their ships and sailed away. One man was left abandoned, sitting on the base of a huge statue they had built to appease their gods.





Their reality: • The business owns them • If they lost their stake in the business, they’d lose

everything • Upset about paying too much in taxes • Their wealth is locked up inside of business • Worried about how to motivate key EE’s without

giving away the business • They get bombarded with sales approaches daily • Too focused on growing their business to meet with

you





• 12M baby boomers own businesses • 70% expected to change hands between 2020-2025 • With non-boomers, 14M owners need help getting

themselves and their $ out of the business in next decade

• 69% of small biz owners expect that their company value will be a source of retirement income*

*July 2010 Gallup pole of 604 small business owners with annual revenue<$20M Robert Avery of Cornell University, 2006





Of current business owners: • 40% plan to exit in the next 5 years • 80% plan to exit within the next 15 years • Eventually they all leave

UBS Financial Services, Inc., 9/16/2010





• All eggs in 1 basket… but blind to the risk • Business is best investment… until it isn’t • OK with personal piggy bank approach… but not your

suggestions • Frustrated with illiquidity… but don’t want to diversify • Letting you in to help is difficult at best





• Lead with your core services • At least you’re getting some business • Industry thinks this is normal • Delayed gratification financial caretaker model

• Stay close He finally executes You (finally) get paid





• Not everybody gets a liquidity event • The “lucky few” who do, believe that now that they’ve

arrived, it is a good time to upgrade their advisors





• Only 20-25% of businesses for sale actually sell* • 90% of those don’t get anywhere near what they

wanted/needed • Shut the doors and walk away • The “boots first” exit

*Jan 2007, The Complete Guide to Business Brokerage by Tom West

USB Financial Services, Inc., 9/16/2010





• Only 30% successfully transition to the next

generation • 72% of private business owners have no continuity

plans • 47% have no estate plans • 55% of CEO’s retiring next year have NOT chosen a

successor

USB Financial Services, Inc., 9/16/2010





• Even if your clients are blessed to have a liquidity

event • Really good chance they won’t get what they were

hoping for

But that’s NOT the worst part…





• Once they get in the big leagues, the game changes • They’ll feel bad, but… • Big paydays attract the big dogs to the beauty pageant • No longer about relationship…how good do you look

on paper






A Turnkey Solution For Professionals Who Serve Private Business Owners

A process to protect the business owner’s most valuable financial asset…

Their stake in the business!





Helps owners • Protect their largest asset from creditors and lawsuits • Reduce taxes on business interest transfers and

current income • Understand and leverage the financial value of their

business under a variety of circumstances • Make sure the money is there when they need it





Helps advisors • Get more referrals • Engage more business owner clients • Predictably increase revenues • Create more value and follow-on work





2-part system that creates leverage 1. 4-part analysis & deliverable 2. Turnkey client engagement system





• The Legal Audit

To protect the business from creditors and lawsuits

• The Tax Minimizer To reduce taxes on business interest transfers and current

income

• The Value Identifier To understand and leverage the financial value of the

business

• The Funding Review To make sure the money is there when they need it





• Client Engagement Brochure • Client Focused Process Diagram • Drip marketing content • Case Studies • A Sample Review • Data Gathering Forms

All Tools Can Be Co-Branded





Let’s explore each section…





1. The Legal Audit • 32-point legal review of buy-sell agreement • ID’s critical issues typically missing from traditional

agreements • Detailed analysis of how to fix problems ID’d • Proactively avoids the “ticking time bomb” problem





“As a business and trust and estates attorney with a number of years in practice, I have reviewed and redrafted many buy sell agreements. I have also been exposed to other buy sell review products in the marketplace. In my experience, the Buy Sell Problem Solver is a superior approach because it systematically identifies critical issues that are missing from most traditional agreements, while providing a level of detail and analysis on how to address these issues that is unmatched in the market. Not properly addressing these issues now, before there is a problem, could lead to potentially disastrous results for your business owner clients. I’m so impressed with their framework that I’m using it to enhance the buy sell agreements that I draft for my clients moving forward.” Jessica Wojtowicz Attorney





2. The Tax Minimizer • ID’s tax problems for the business • ID’s tax problems for the owners • Provides creative solutions to reduce taxes now and in

the future





3. The Value Identifier • ID’s an accurate range of values for planning purposes • Highlights areas where future planning can be greatly

improved • Provides opportunity for integrating personal and

business planning based on value and owner goals





4. The Funding Review • Is strategy missing? • Out of date? • Able to survive real world stress tests? • Will the money end up where the owner intended?





Business Value $5M

Annual Free Cash $600,000

Growth of Free Cash 2%

Number of Partners 2

Partner 1 Ownership 50%

Partner 2 Ownership 50%

Buyout Price $2.5M

Installment Sale (Years) 5

Interest Non-specified in Buy Sell

Decrease Free Cash (Stress Test) 20%





-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1 2 3 4 5

Pre-Tax Cost After-Tax Cost

Tax Impact To Cover Buyout





(50,000)

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1 2 3 4 5

Cash Before Buy-out Cash After Buy-out Cash After Buy-out - Reduced Cash flow 20%

Cash Available for Surviving Owner





1. Buy-Sell Value Costs Owner $15M 2. Buyout Proceeds Withheld From Heirs 3. Buy-Sell Agreement Creates Tax Hit – For No Reason 4. Surviving Owner Forced to Overpay to Keep Business 5. Buyout Triggers Loan Acceleration 6. The Golden Goose Leaves and Takes The Eggs






A Turnkey Solution For Professionals Who Serve Private Business Owners

A process to protect the business owner’s most valuable financial asset…

Their stake in the business!





2-part System that creates leverage 1. 4-part analysis & deliverable 2. Turnkey client engagement system





• The Legal Audit

To protect the business from creditors and lawsuits

• The Tax Minimizer To reduce taxes on business interest transfers and current

income

• The Value Identifier To understand and leverage the financial value of the

business

• The Funding Review To make sure the money is there when they need it





We want to help you get more business, but we need your help!

1. Give us feedback from the field to improve offer/tools 2. Share what your clients/prospects have to say 3. Commit to 1 “test” engagement





• No charge to be part of program (at this time) • Significant discounts to our fees (for now) • Zero risk (for you and your clients) • Personal support in using tools to engage clients





• Flat fee of $2500 per client engagement (loss leader)

4-part analysis Turnkey/Co-branded marketing system

• Zero risk money back guarantee No fine print, no questions asked If not 100% satisfied, we’ll refund the $2500

• 50/50 split of insurance commission (if any)





If you want to be part of our test group: 1. Email Greg Maddox at [email protected] 2. Complete our short agreement & schedule strategy

session with Greg • Greg will send you our short agreement for signature • Email signed agreement back to Greg

3. Receive sample materials & complete strategy session with Greg

• Review materials • Answer questions • Co-Develop engagement strategy that works for you




mailto:[email protected]

(630) 596-5090

715 Enterprise Drive

Oak Brook, IL 60523

All Content Copyright © 2014

www.InKnowVision.com

@InKnowVision

InKnowVision, LLC

InKnowVision

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For more information contact Greg Maddox

[email protected] 847.269.4624

Thank You!




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