Orbit Succession & Estate Planning

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Looking for a business consultant who tackles your implementation, not watches from the sidelines? Introducing a new profit stream into your business: A pro active Business Advisory Consultancy, specializing in Succession and Estate Planning (ensuring your clients receive the advice they need and… see the light). No will No succession plan (for themselves or their business) No clue? Do you know what % of your clients have:

Transcript of Orbit Succession & Estate Planning

Page 1: Orbit  Succession & Estate Planning

Looking for a business consultant who tackles your implementation,not watches from the sidelines?

Introducing a new profit stream into your business:A pro active Business Advisory Consultancy,

specializing in Succession and Estate

Planning (ensuring your clients receive

the advice they need and… see the light).

No will

No succession plan

(for themselves or their business)

No clue?

Do you know what % of your clients

have:

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Succession planning applies the day you think about commencing a business and continues throughout its life..

In 2020, the baby boomers generation (those born between 1946 and 1964) will be aged between 56 and 74

years of age with the weighting heavily towards the older end of the scale. The outcome will most likely be that

by 2020 a significant number of baby boomers will have or will

be in the process of transferring ownership of their business.

In Australia, the estimated value of these businesses is around

$3.5 trillion. The next 7-10 years represents a period of opportunity and risk.

Opportunity will lie in:

• movingaheadofthebottleneckthatmayariseifmanybusinessestrytoexitatthesametime;• planningandactinginyoursuccessionnow,and• looking foropportunities toacquire,mergeor formallianceswithotherbusinesseswithastrategyofeither

growingtoexitorgrowingtostayandimprovecompetitiveness.

Risk lies in complacencyandinaction,resultingineithermissingopportunitiesorsimplybeingleftbehind.

Succession is a sleeping giant that is about to awake

and one which many business owners do not even

recognise will impact them directly.

Providing

Succession Planning for your professional clients

open the door to a huge opportunity

with no distraction from your billable hours

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it’s time to take

succession planning out

of your too hard basket

andrecogniseit’svalue

to your firm.

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What Is Succession All About?

Whenyoumentiontheword‘succession’thecommonreactionistothinkof‘retirement’.WhetheritistheCEOofapubliccompanyorintheprivatecompanyarena,theconnectionisimmediateandusuallywithoutexception.

Forprivatecompanies,successionconnectswiththefounderand/orownerretiringandsellingouttoathirdpartyorpassingovercontroltoafamilymember.Whilstthesecommonlyheldviewsofsuccessionmightnotbeincorrect,theydonotaccuratelyreflectwhatshouldbetherealfocusofsuccessionplanningforprivatecompanies.

The eventual retirement of a founder and/or owner may well be an outcome of a succession process

but it is certainly not its purpose. Succession is the process of ensuring the continuity of a business

beyond its current management. This is achieved through identifying and understanding the capital

value drivers of the business, the elements that allow it to compete effectively in its markets, and

growing and investing in those drivers.

Afocusoncapitalvaluedriversallowsnotonlyforeffectivesuccession,butalsosupportsandallowsacompoundingofthebusiness’capitalvalueoveritslife.

Wethinkofsuccessionplanningasaprocessofevolution–BusinessEvolution.Enablingthecompoundingofwealthfromgenerationtogenerationwhileensuring familyunity, individualgrowthandasenseofcontribution, this is theessenceofsuccessionplanning,thisisBusinessEvolution.

Which of your clients need a succession plan?

Successionplanning isakeyconcern foranyonewhohas founded,ownsorhasanequity interest inbusinessestrading under a private company structure or public company where they continue to hold a significant controlling interest.

Yourwealth ismaterially impactedby your ability to realise and /or transfer that interest to a thirdparty or familymembers.Ifyouownaminorshareholdinginapubliclylistedcompanyrealisingortransferringitsvalueisrelativelyeasy,howeverwithprivatelyownedbusinessesorasignificantcontrollinginterestinlistedcompanies,realisingandtransferringvalueisaverydifferentprocess.

Succession planning starts the day you commence your business

and continues until the business no longer exists or you release your interest.

Succession planning is important for family businesses, small businesses,mediumand large businesses, closelyheld businesses, privately owned businesses and a significant controlling interest in publicly listed businesses. Howeveryoudescribeyourbusiness,successionisfundamentalindeterminingthe‘capitalvalue,worth,marketprice’ofyourbusiness,andthereforeyourandyourfamily’swealth.

Issues Faced by SME’S

SomeoftheissuesfacedbySMEownersisthey….

• Spendtoomuchtimeworkinginthebusiness,notonit• Struggletoattract,retainandmotivatestaff

• Recordnumbersareexpectingtoretire,floodingthemarket• Generationalsuccessorsarenotinterested

• Notpreparedorplanningforsuccessionorretirement• Unawareoftheirbusinessvaluegapandunder-ornotinsured

Source: Bendigo Bank pilot program, December 2008

Thesurveyalsofoundthat:

• 75%ofSMEssurveyeddon’thaveadetailedplanforthefuture• 61%consider“now”asthemostimportanttimeforplanning

•86%don’thaveasuccessionplan• 41%don’tknowtheirbusiness’worth

•71%don’thaveanestateplan• 88%wouldliketodevelopaplanforthefuture

SMEsneedmore–andbetteradvice

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Identifying why your clients need help

Therealityisthatpeople,despitetheirbestefforts,createmessandcomplexityacrossthevariouspartsoftheirlives.Manyattempttoignorethismess,perhapsignoranttothefactthatatsomepoint,eithertheyorsomebodyelsewillhavetomakesenseofitall.

Unfortunately, thishabitualprocrastinationbypeopleand/or their advisers toooften leads to significant emotionaltrauma,financiallossandrelationshipdislocation.

Professional advisershave, for generations, recognised thedownside topoormanagement andplanningby theirclients across a diverse range of areas from business and succession planning to estate and financial planning(amongst others).

Yet thecomplexityof the issues, thediversityofeachperson’ssituation,and thebreadthofskillsandknowledgeneededtoaddresstheissueshasmeantthatmostpeople-andtheiradvisers-putthesecriticalplanningactivitiesintothe‘toohard’basket.

Untilnow.

WelcometoreG3n,acloud-basedsolution(designedbyadvisersforadvisers)thatthrivesonturningthecomplexintotheunderstandable.reG3nenablesreactive,transactionaladviserstogenuinelydeliverperpetuallife-changingvaluetotheirclients,aswellastheirclient’sfamiliesandcommunities.

reG3nmovesadvisersfromthereactivevaluefringetohigh-quality,recurringstrategicengagements.

OrbitutilizesreG3nasthesystemtodeliveritsBusinessSuccessionProgramsolutionstoaccountingfirms.Orbitwilldevelopbespoke,customizedsolutionsforyourpracticetomeetthespecificneedsofyourclientsandtherebyprovideaverypowerfulandimpactfulservicetoassistyourclients.

Streamlining implementation & data storage (with reg3n)

Cleanly capturing information

Toooften,aclient’sinformationendsupasacollectionofscribbledortypednotes,out-of-datedocuments,fact-findsandmultiplespreadsheets.Findingaparticularpieceof information issomethingakintoatreasurehuntwhere‘x’marksanentiresectionofdocuments.Inaddition,theinformationcollectedcanvarywidelyfromadvisertoadviser,dependingontheirexperienceandworkingstyle.

reG3nchanges this. Itprovidesaneasilyaccessibleand logical structure tocaptureaclient’s informationso thateverythingisinoneplace-yourdigitalorganiserandfilingcabinetforallclientinformationcollectedduringtheplanningprocess.

reG3nstoreseverythingfromanorganisation’sbackgroundinformation,oranowner’sfinancialobjectives,tospecificinformationonthesaleortransferofallorpartofanorganisation.Itprovidestheadviserwithaframeworkforcollectinginformationandallowsthemtofindthatinformationagainquicklyandeasily.

Simply storing large volumes of information

Aftercollectinginformationfromaclient,itcanbeoverwhelmingtobeconfrontedwithalargefileofinformationtosortthroughandpiecetogether.Withcrucialinformationscatteredacrossmultipledocuments,itcanbeaheadachetoassembleeverythingandseethebigpicture.

reG3ncombinesstructurewithflexibilitytoarrangethismassofinformationintothreecoreareas:organisation,peopleand actions.

The‘organisation’and‘people’areasformthebasisoftheinformationcollectionprocess.Alessexperiencedadvisercanusethequestionsasaguidewhenrequestinginformationfromclients,whileamoreexperiencedadvisermaysimplyusethemtostoretheinformationtheyreceive.

The ‘action’ area uses the client’s information and assists the adviser with standard planning activities, such asanalysingbusinessperformance,performingbusinessappraisals(andvaluations,ifsuitablyqualified),andfacilitatingthe sale or transfer of a business.

It’ssimpleenoughthatanotheradvisercantakeoveraclient’sfile,andseeallcrucialinformationataglanceonthedashboard.

The right tools for delicate subjects (understanding your client)

Theadvisoryprocessismorethanjustanalysingnumbersanddata.It’sabouthelpingpeopleplanaheadtoachievetheirdesiredqualityoflifeorsimplifytransitionalphasesthroughtoeachperson’sultimateexit-death.

reG3ngivesadviserstoolstohelpthemaddresspotentiallydelicatesubjectswithclientsandgainabetterunderstandingof where their client wants to be. It provides customisable collateral for engaging with clients, surveys to betterunderstandtheirlongandshort-termrequirementsandgoals,aswellaswhat’simportanttothem.

reG3nprovidesadviserswithvisual (andother) tools togainabiggerpictureunderstandingof theclientand theirbusiness,sotheycandeterminewhichareasrequireimmediateactionandthosethatrequirefutureattention.

Produces informative reports

Dataismeaninglessifit’ssimplystoredawayandquicklyforgotten.reG3nensuresinformationiscurrentandperpetuallymeaningful,enablingadviserstoshareanddiscussitwiththeirclientsinarelevant,simpleformat.Itprovidesclean,easy-to-readreportsbasedontheinformationtheadviserhasstoredinthesystem.

Thereareawidevarietyofreportsthatprovideanoverviewoftheorganisation,theownersandotherrelatedparties,structures,conflictsofinterest,andactionplans.Forthoseusingthevaluationtool,reG3ncanalsoproduceeditablebusinessappraisalsandvaluationreports(ifundertakenbyasuitablyqualifiedadviser).

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Complexity, cost and procrastination are problems of the past

Asatechnicalareaofadvice,EstatePlanning(EP)canbeverycomplexandtimeconsuming.Inaddition,EPinvolvesskillsacrossabroadrangeofadvisers(whichalsoaddsaprojectmanagementfunctiontothesituation).Theseissuesalonemeanthatthereisalackofcoordination,workisdoneinefficiently,differentadvisersareworkingwithdifferentpiecesofinformationandcostsfordoingtheworkbecomeprohibitive.Addingfurthercomplicationisthefactthatpeopleareoftenuncomfortableaddressingtheirmortality,theyarescaredofthecostsandthereforeconstantlyprocrastinateindealingwiththeissues.Theendresultisthatmostclientsdon’tgettheadviceanddirectiontheyneed,theiraffairsremainoutofcontrolandadvicebusinessesfailtobenefitfromthelegitimatecommercialopportunityEPoffers.

Be the ‘Family Manager’ for your client

EPisauniqueareaofadvicethatnaturallyintersectsallrelationshipsassociatedwithaperson-fromthefamily,tothoseassociatedwiththeirbusiness/professionallife,tothoseintheircommunity.ThehighvalueopportunityforanadvicebusinessistopositionthemselvesastheFamilyManagerfortheclient.Thisisthemostvaluablerolethatcanbeundertakenwithaclientandmeanstheadvicebusinessisengagedwiththeclientatthestrategic/managementlevel.Thisnon-advicerolecanbestructuredasamonthlyorannualfeeandensuresthattheadvicebusinesssitsatthemiddleoftheclient’saffairsandstructurallyengagesthemwithalltheclient’sotheradvisersandrelationships.

The app: cutting time and costs (Estate Planning For Life)

Untilnow,fillingthisrolehasonlybeenpossibleforthosewealthyclientswiththeresourcestopayforateamofadvisersortheirownpersonalbusinessmanager.However,thankstotheEstatePlanningForLife(EPFL)app,anadvisercannowpositionthemselvesastheFamilyManagerwithalmostanyclient,bringorderandcontroltothefamily,andveryefficientlycreateawholenewEPbusinessthatdriveshighvalueandannualised(highmargin)revenue.

Benefits for your business and your clients

EPFLenablesadvicebusinessestogenuinelyconnectwiththeirclientsatamorestrategicmanagementlevel.WithEPFL,thisrelationshipisauthenticallyvaluableforboththeclientandtheadvicebusiness.Thebenefitstotheclientareobvious,providingthemwithgreatercontrol,security,confidenceandtransparencyoftheiraffairs.Inaddition,itensuresthatalltheiradvisersareworkinginunison.Fortheadvicebusiness,thebenefitsaresubstantial.EPFL:

• Repositionstheroleoftheadviser• Drivesanewand/orexpandedareaofthebusinessoffer• AllowsEPtobecomeanannuityincomestreamareaofthebusiness• Identifiessignificantadditionaltransactionaladvicework• Providesabasisfortheclienttocomebackandreviewtheirsituationeachyear(andhavetheirdocumentsfrom

the system updated)• Connectsadvicebusinesseswithalltheotherkeyrelationshipstheirclienthas(creatingnewclientrelationships)• Significantlyimprovesthevaluepropositionoftheadvicebusinessreducingthepotentiallossoftheclient

From an advisers (accountant, financial planner, lawyer, consultant) perspective, they have a professionalresponsibility (legal,ethicalandemotional) toensurethattheirclientsarepreparedforthisevent.However, inmostcases(eventhosewithlegalandcurrentdocumentsinplace),clientsandtheiradvisersarenotpreparedforaperson’sdeath.Therearesignificanttechnical,management,emotionalandcommercialreasonsforthis.

Providing

Estate Planning for your professional clientsindividual needs

the harsh reality is that there is

no person alive today who will not die

at some point in the future. this means that

having to deal with aperson’sestate isnotonlyapossibleevent,

it is inevitable.

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Orbit has developed a bespoke consulting

solution for delivering a complete Succession consulting

solution to a select number of accounting firms.

Orbit will provide to an accounting practice:

• Systems and processestoidentifyclientneedsandproviderecommendations

• Resources to project managetherequiredactionsandbeaccountable

• A senior consultant to represent the firmasits“BusinessSuccession/EstatePlanningStrategist”

• The ability to deliver this important servicetoitsclientswhichisfarmoreholisticthantraditionaltaxrelatedwork

• The opportunity to identify ongoing future projectswithongoingrevenuepotentialforthefirm and its referral partners

• Rain making capacity to generate new workfromtheclientsofitsreferralpartnersbyactivelypromotingthisnewfound,anduniquecapacitywhichindustryresearchsaysisalmostnonexistent.

• An ability to identify client needs and facilitate a solution

• Marketingresourcestoactivelypromotethefirmandthisnew,uniqueservicetoreferralpartnerseglawfirms,banksandseekingtogeneratenewclientengagements

• Introduction of industry expertstoassistclientsinareasofestateplanning,tax,capitalraising,businesssale,finance,assetprotection,insurance,successionfunding

• OpportunitytoexplorethepotentialtoestablishaVirtualFamilyManagerservicetopositionthefirmasthetrustedadvisortoyourclientsfamilieswherebyyoucoordinateallmajorfinancialissuesasbothagatekeeperandprojectmanager.

Be proactive and valuable

Estateplanningoffersaunique,lowcostsolutiontoamassive,highimpactproblem.ByusingandfollowingtheEPFLprocess,yourclientswillengagewithyouonanemotional,practicalandcommerciallevelinawaythatdoesnotleavetheclientfeelingoverwhelmedbytechnicalinformation.Engageandconnectwithyourclientsinanewwaythathasthemseeingyourrolewithadifferentperspective.

To provide a business succession champion

The Orbit

Solution

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Orbit’s Proposal

Toenableyourfirmtoaccessthesignificantopportunitieswithinyourclientbaseandexternalrelationships,Orbitwillundertaketoprovidethefollowingservices:

• AccesstoaSeniorConsultant(MatthewBrannelly)whowillattendyourofficeseachweek• CoordinationoftheproposedBusinessAdvisoryDivisionwithinyourpracticewithspecificemphasisonEstate

Planning and Succession Planning • Establishmentofsystemsnecessarytodelivertheseservices• Marketingresourcestopromotethisnewserviceexternallytothefirm’sconnectionsegbanks,lawfirms• TheserviceswillbeprovidedbyMBrannelly,representingyourfirmasthe“SuccessionStrategist/Specialist“

Revenue Potential

Individuals:

• EstatePlanning–consultingfees$3,000• RiskInsurance-$5,000• Legal-$2,500

Businesses:

• SuccessionPlanning–consultingfees$10,000• RiskInsurance-$20,000• Legal-$10,000

NewRevenueProjections

5xindividualEstatePlansperweek

(consultingfeesof$15,000pw)

10xindividualEstatePlansperweek

Plus revenue from: risk insurance and legal and succession planning projects.

the potential opportunities and

revenue available

from succession planning & estate planning are

too strong for any firm to ignore. Theobstacleuntilnowformostfirmshasbeenthe

lack of time and resources availabletocommit.ThankstoOrbit,thesepastissuesare

no longer a limitation.

=$750Kper annum

=$1.5Mper annum

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call 0419 222 344 and get your accounting firm on target.

E [email protected] W orbitstrategies.com.au

PO Box 598, Clayfield, Q, 4011

New ReveNue thRough SucceSSioN PlaNNiNg eState PlaNNiNg