CFA Next Step Client Presentation

• 1. A journey begins

2. 3. The journey continues 4.

• is asystematic, team-driven program whichguides business ownersthrough the process ofextracting themselves and their wealth from the business.

• The program focuses on

• • • • the business owner,

• • • • a complete and optimal solution,

• • • • and a team effort.

5. Overview

• Owners Goals & Objectives

• CFA NextStep Benefits To Advisor

• Challenges

• Defining Exit Planning

• A Multi-disciplinary Team

• A Systematic 5-step Process

• Business Valuation and Marketability Report

• Wealth Management Plan

• Global Concierge

• Business Exit Plan

• Positioning Strategies

• • Tax Strategies

• Exit Strategies

• • Tax Strategies

• Execution Of Business Sale Strategy

• Exit Planning Benefits

• CFA NextStep Marketing

• Fees

• Q&A

6. Owners Goals and Objectives

• Optimal Allocation of Wealth

• • Reallocation of Business Wealth

• Extraction of Business Owner

• Business Owners Goals

• • Protection of Family & Others

• • Legacy Goals

• • Lifestyle &Life-after-BusinessGoals

• • Estate Planning Goals

7. Challenges

• Restricted Credit Markets

• Boomer Retirement Era

• • 10 million US Businesses for Sale

• • 25% - 35% will sell

• Mistakes Business Owners Make

• • Unplanned, No Positioning

• • Reactive, Single Buyer

• • Un(der)-represented

• • Market-Insensitive Expectations

• • Price Focused(vs. Terms & Structure)

8. Defining Exit Planning

• Personal Strategic Direction

• Positioning Strategies

• • Optimizing the Expected Wealth Transfer

• Exit Strategies

• • Synchronizing Extraction of Owner and Wealth

9. A Multi-disciplinary Team 10. A Systematic 5-step Process 11. Business Valuation & Marketability

• Determining the Expected Wealth Transfer

• Identifying Factors with key influences on Value

• Identifying Factors with negative influence on Marketability

12. Wealth Management Plan

• Identifying and Quantifying Owners Goals

• • Protection of Family & Others

• • Legacy Goals

• • Lifestyle & Life-after-Business Goals

• • Estate Planning Goals

• Tax Strategies

• • Current and Future Cash Flow Planning

13. Wealth Management Plan(Cont.)

• Establishing Investment Strategy and Asset Allocations

• Determining the Targeted Wealth Transfer

• Family Governance

• • Most Valuable Assets Not Measured by Dollars

• • Intellectual Capital, Social Capital, Political Capital

• • Successful Generational Wealth Transfer

• • Multi-generational Wealth Education

14. Global Concierge

• Dedicated Unit within MSSB

• Completely Customizable from Mundane to Exotic

• Tickets, Travel

• Personal Security, Art & Aircraft, Multiple Residences, School Prep

15. Business Exit Plan

• ReconcilingExpectedvs. TargetedWealth Transfer

16. Positioning Strategies

• Corporate Value Enhancement

• • Corporate Structure and Governance

• • Strategic M&A

• Business Value Enhancement

• • Risk (Certainty) and Return (Growth)

• • Management

• • Market Position

• Business Marketability Enhancement

• • Transparency

• • Validation

17. Positioning Strategies(Cont.)

• Multi-Step Liquidation

• • Recapitalization

• • Options and Warrants

• • M&A, Consolidations and Roll-ups

• Tax Strategies

• • Double Tax

• • Tax Deferral

• • Tax Attributes (NOLs)

• • Capital Gains

18. Exit Strategies

• Sell

• • Competitors

• • Partners

• • Strategic Buyer

• • Financial Buyer

• • International Buyer

• • Going Public

• Recapitalize

• • Owner Liquidity

• • Business Capital Raise

19. Exit Strategies(Cont)

• Merge

• • Acquisition or Merger

• • Consolidation or Roll-up

• Transfer

• • Family

• • Management

• • Employees (including ESOPs)

• Gift

• • Charitable Remainder Trust

• Liquidate

• Hold

20. Execution Of Business Sale Strategy

• Organization

• • Team

• Action Plan

• • Positioning Strategies (including audits and studies)

• Business Marketing Documents

• Research and Outreach

• Data Exchange and Negotiations

• Letter of Intent

• Due Diligence

• Close

21. Exit Planning Benefits

• Higher Probability of Success

• • Goal Focused

• • Planned and Managed

• Optimal Result

• • Intermediation and Negotiation

• • Expedited Mission

• • Reduced Tax Burden

22. Contact George Washington Smith, Principal Corporate Finance Associates Phoenix Office 555.555.0000 [email_address]