Next Step 2014 presentation by Erraballi Vandita Rao from Rural Development Foundation
Next step-presentation
Transcript of Next step-presentation
![Page 1: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/1.jpg)
A journey begins…
![Page 2: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/2.jpg)
![Page 3: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/3.jpg)
The journey continues…
![Page 4: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/4.jpg)
is a systematic, team-driven program which guides
business owners through the process of extracting
themselves and their wealth from the business.
The program focuses on
• the business owner,
• a complete and optimal solution,
• and a team effort.
![Page 5: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/5.jpg)
Overview
• Owner’s 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
![Page 6: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/6.jpg)
Owner’s Goals and Objectives
• Optimal Allocation of Wealth
• Reallocation of Business Wealth
• Extraction of Business Owner
• Business Owner’s Goals
• Protection of Family & Others
• Legacy Goals
• Lifestyle & Life-after-Business Goals
• Estate Planning Goals
![Page 7: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/7.jpg)
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)
![Page 8: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/8.jpg)
Defining Exit Planning
• Personal Strategic Direction
• Positioning Strategies
• Optimizing the Expected Wealth Transfer
• Exit Strategies
• Synchronizing Extraction of Owner and Wealth
![Page 9: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/9.jpg)
A Multi-disciplinary Team
![Page 10: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/10.jpg)
A Systematic 5-step Process
![Page 11: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/11.jpg)
Business Valuation & Marketability
• Determining the Expected Wealth Transfer
• Identifying Factors with key influences on Value
• Identifying Factors with negative influence on
Marketability
![Page 12: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/12.jpg)
Wealth Management Plan
• Identifying and Quantifying Owner’s Goals
• Protection of Family & Others
• Legacy Goals
• Lifestyle & Life-after-Business Goals
• Estate Planning Goals
• Tax Strategies
• Current and Future Cash Flow Planning
![Page 13: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/13.jpg)
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
![Page 14: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/14.jpg)
Global Concierge
• Dedicated Unit within MSSB
• Completely Customizable – from Mundane to Exotic
• Tickets, Travel
• Personal Security, Art & Aircraft, Multiple
Residences, School Prep
![Page 15: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/15.jpg)
Business Exit Plan
• Reconciling Expected vs.Targeted Wealth Transfer
![Page 16: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/16.jpg)
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
![Page 17: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/17.jpg)
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
![Page 18: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/18.jpg)
Exit Strategies
• Sell
• Competitors
• Partners
• Strategic Buyer
• Financial Buyer
• International Buyer
• Going Public
• Recapitalize
• Owner Liquidity
• Business Capital Raise
![Page 19: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/19.jpg)
Exit Strategies (Cont…)
• Merge
• Acquisition or Merger
• Consolidation or Roll-up
• Transfer
• Family
• Management
• Employees (including ESOPs)
• Gift
• Charitable Remainder Trust
• Liquidate
• Hold
![Page 20: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/20.jpg)
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
![Page 21: Next step-presentation](https://reader034.fdocuments.in/reader034/viewer/2022051617/55a3aef31a28ab13468b4642/html5/thumbnails/21.jpg)
Exit Planning Benefits
• Higher Probability of Success
• Goal Focused
• Planned and Managed
• Optimal Result
• Intermediation and Negotiation
• Expedited Mission
• Reduced Tax Burden