Exit Planning Doubleheader
in the Virtual Learning Center
Presenters: Kalli Matsuhashi, MA, LP and Dyanne Ross-Hanson CLU, CFP® ChFC CEPA
This session will address the psychological barriers that arise when business owners are preparing to exit, whether through a sale of the business or a transition to the next generation. Advisors will be encouraged to consider these barriers from the viewpoint of their business-owner clients as well as their own position as a business owner. Issues of transitioning to the next generation and how to effectively manage conflict will also be discussed.Learning Objectives
By the end of the session, attendees will:
- Understand the emotional issues that make owner exits so challenging
- Identify the next generation issues to be faced when the business stays in the family
- Learn two processes for effectively managing conflict
HR 2: Exit Planning - A Guide to the Process
Transitioning a business is generally the most significant financial event in a business owner’s life, and the reality is that less than one in four has developed a purposeful plan. While there are numerous reasons cited, one prominent one is that owners simply don’t know where to start. This program will help educate owners (and their advisors) on a proven process to develop a written Exit Plan and highlight common mistakes to avoid.
The 7 Step Process™ to be discussed will include:
- Identifying Exit Objectives: Departure date, desired successors, and required income need.
- Identify Business & Personal Financial Resources: Professional business valuation is it necessary? Enterprise or discounted value, which is appropriate?
- Maximize & Protect Business Value: Focus on (EBITDA), key employee incentive and retention, among other value drivers.
- Ownership Transfer to Third Parties: Pre-sale planning and pricing, key management retention, the competitive auctioning process.
- Ownership Transfer to Insiders: Two issues are taxes and insiders generally have no money. How to develop a plan that minimizes income tax to buyers, maximize income to seller.
- Business Continuity: Buy Sell Agreements; The most important business document you will sign. Stay Bonus; what is it?
- Personal Wealth & Estate Planning: Coordinating your Exit Plan with your Estate Plan.
By the end of the session, attendees will:
- Discover a Seven Step Process™ needed to design a comprehensive Exit/Transition Plan.
- Identify the advantages of an experienced Advisory Team when executing an Exit/Transition Plan.
- Explore issues surrounding valuation, tax minimization, value enhancement, challenges facing “internal” and “external” transitions, importance of having a “back-up” plan, and legacy/estate planning techniques.
Kalli Matsuhashi, MA, LP
Owner, Executive Confidante
Kalli Matsuhashi is the owner of Executive Confidante. She is an executive coach and serves as a family business advisor to family and closely-held businesses.As an advisor to family businesses, Kalli helps companies address issues related to family dynamics, in particular the conflict that tends to arise at times of transition. She uses her training and experience as a psychologist to guide and coach family members through their disagreements and conflicting needs. Kalli also has a background in management consulting and organizational development, and can support the development of effective structures and processes to support family business development.In her role as an executive coach, Kalli specializes in helping organizations address the behaviors of abrasive leaders - leaders or managers that have demonstrated a pattern of bullying behavior with their coworkers. She also provides conflict coaching, coaching with individuals and teams to help them resolve interpersonal and departmental conflicts at work.
Dyanne Ross-Hanson CLU, CFP®, ChFC, CEPA
President, Exit Planning Strategies, LLC
Dyanne Ross-Hanson CLU, CFP®, ChFC, CEPA has nearly 30 years of experience as an Independent Financial Consultant. She specializes in helping owners of closely held businesses plan for their inevitable departure from the business. The firm’s mission is to act as advocates on behalf of our business owner clients and their families who require highly specialized and comprehensive financial advisory services. Herr focus is to help clients achieve maximum value and minimize risk to their assets specifically as it relates to the sale or transfer of their businesses.