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The Business Owner Planning Process

TM

Grow, Protect, and Exit to Realize the Full Value of Your Life's Work

Through our affiliation with Consolidated Planning, we've been helping business owners like you strike a harmonious balance between their business and personal planning needs. We realize that for you, everything in your financial world begins and ends with your business. Whether it's retirement planning or healthcare decisions, your situation doesn't fit the traditional planning mold. As a business owner, you have the opportunity to dictate your own financial success in a way that few others do. However, that opportunity comes at the risk of a great deal more to lose if life doesn't unfold as planned. During the course of the Financial Wellness Planning Process, we will help protect your business from loss, provide strategies to recruit, retain, and reward key employees, and most importantly guide you on when and how you can ultimately exit your business, helping to ensure that you and your family receive the full value of your life's work.

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The Business Planning Process

TM

From the early days of HiltonGarrison, we existed to serve business owners. In the 3 decades since, we have served thousands of business owners and through those collective efforts refined a planning process that is seldom matched in the industry. Our focus is on protecting your business asset, helping to grow your business, in particular through Employee Retention, and ultimately helping you to exit the business on your terms.

See Your Business on “One Page”

A

D

Review Against Next Priority

Evaluation of Planning Issues

B Evaluate & Implement

Consultative vs. Transactional

Priorities for Planning

Exit Planning Business Interruption

C Maximize Cash Flow

Key Employee Retention

Coordination Leads to Efficiency

HiltonGarrison is an Agency of The Guardian Life Insurance Company of America® (Guardian), NY, NY. Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 901 Mopac Expy., Barton Oaks Plaza IV, Suite 150, Austin, Texas 78746, 512-651-2009. PAS is an indirect, wholly-owned subsidiary of Guardian. HiltonGarrison is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2016-30789 Exp. 11/18


About The Business Planning Process Get Organized using the Business Owner’s BlueprintTM We want to bring your entire financial picture into focus. We will clarify and organize the data you gather into your Business Owner’s BlueprintTM. This provides a clear starting point to assess where your business balance sheet is at this moment in time.

Evaluate Your Planning Issues/Priorities

T Y P I C A L

P L A N N I N G

P R I O R I T E S

In order to work on your behalf, we need to understand what is most important to you. Here, we will take the time to clearly define the goals you, your family and your management team would like to achieve. We will then use your vision to guide us to the area of your Blueprint to address first.

Exit Planning: Eventually, all roads lead to Exit Planning. Therefore, every decision made around business planning should be done through the lens of Exit Planning and as the desired date approaches a more formalized Exit Planning Process will be necessary to ensure that you leave your business when you want to, to who you want to, and for the amount you want to. Business Interruptions: Continuing your business includes providing a retirement for you, legacy for your family, and for your business, if desired. Here, we plan for all continuation contingencies in order to optimize your financial future – no matter what life throws at you along the way. Key Employee Retention: A business’s most valuable assets are generally its employees. Great employees add outsized value to the bottom line, they are difficult to find – and even more difficult to keep. Furthermore in order for you to one day retire or sell your business, it must be able to function as well without you as with you. This only happens by recruiting, rewarding and retaining phenomenal people. Key employee retention planning must provide creative ways to “handcuff” employees to your business for 10, 15, 20 years so your business value is enhanced. Maximize Corporate Cash Flow: What is the highest and best use of cash flow for your business? How would your answer change if you wanted to retire tomorrow? Business owners spend most of their careers reinvesting back into their business to grow the company, forsaking their personal balance sheets along the way. We will help you examine your corporate cash flow to ensure you are building a powerful business and a powerful personal balance sheet so you can one day retire on your terms.

Evaluate & Implement After determining an area of focus, we will evaluate potential solutions, measure them and provide you with recommendations. When we have determined a course of action, we will coordinate with tax and legal experts if needed to execute the recommendations.

Review Business Owner’s BlueprintTM Against Planning Priorities Once we have addressed your top priority, we will then return to the Business Planning SnapshotTM to determine where we should focus next. This iterative process allows us to ensure we address your most pressing needs first and ensures a complete fulfillment of your plan for yourself and for your business.

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The Business Exit Planning Process

TM

Identify “The Gap”

Lock up Key Employees Minimize Taxes Identify Value Drivers

What’s the GAP?

Maximize Business Value

Inside Or Outside Sale?

Buy/Sell Agreement? Buy/Sell Funding?

What Do You Have? What Do You Want?

Lowest Defensible Value to Insider? Maximum Value to 3rd Party? Cash or Installment?

Business Continuity

Synch with Distribution Plan

Minimize Taxes Highest & Best Use of Cash Flow Legacy and Estate Plan

HiltonGarrison is an Agency of The Guardian Life Insurance Company of America® (Guardian), NY, NY. Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 901 Mopac Expy., Barton Oaks Plaza IV, Suite 150, Austin, Texas 78746, 512-651-2009. PAS is an indirect, wholly-owned subsidiary of Guardian. HiltonGarrison is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2016-30789 Exp. 11/18


About Business Owner Exit Planning For the business owner, all roads lead to Exit Planning. Eventually, you will leave your business – the question is when, to whom, for how much, and on what terms? At HG, our experience has taught us that in each unique business owner situation, there is a specific process of discovery, strategy, and implementation that can lead to the best possible result when it comes to realizing the full value of your life’s work:

What do you want?

The answer to this question is about many things – how much do you want in post-exit cash flow? When do you want to exit?

Sell for highest or lowest value?

A critical, but often overlooked, aspect of a successful exit strategy is locking up key employees who will serve as a bridge from old ownership to new. This continuity is critical for the success of both parties and can be assured by taking the proper steps to motivate key personnel to act like an owner without you actually giving up any ownership.

Do your employees act like owners?

Exit & Retirement strategies in sync?

What about your Estate Plan?

Really, this is a question about who you plan to sell the business to. If it’s an Outside party, the goal is typically to sell for the highest possible price. If it’s an Inside party, the goal is actually to sell for the lowest possible price. Either approach requires up front planning to put the right pieces in place for when the time comes.

The amount of cash flow needed in retirement creates constraints on the terms of your business exit strategy, and vice versa. Coordinating retirement distribution strategies with the exit strategy is paramount, and the sooner the better.

How will the business exit strategy impact your overall tax and estate plan? It’s critical that you are prepared in advance to deal with problems that could be created because of your success, especially when it comes to the need for liquidity and the desire to treat all family members “fairly,” given that “equally” is not always an option. 2016-30789 Exp. 11/18

HiltonGarrison_BusinessOwnerPlanning  

A review of HiltonGarrison's services catered specifically towards the financial security of business owners.