KEY EMPLOYEE INCENTIVE PLANS THAT SUPPORT SUCCESSION AND EXIT: EQUITY, CASH, AND HYBRID STRATEGIES! JOINT MEETING WITH MIDWEST BUSINESS BROKERS & INTERMEDIARIES (MBBI) - MN
Key employees can make or break a successful succession or exit, yet many owners struggle to incentivize and retain them without creating unintended control, tax, or valuation issues. This session equips advisors and deal with professionals with a practical framework for evaluating when equity participation truly supports enterprise goals—and when cash-based or synthetic-equity alternatives may be more effective. We will compare common structures, such as minority equity grants, options, and profit interests, with “non-ownership” solutions, such as stay bonuses, performance units, phantom equity, and deferred compensation. Real-world case examples will highlight where incentive plans succeeded, where they created friction, and how to design arrangements that preserve owner flexibility while driving key-employee engagement. Participants will leave with a clear set of decision criteria, design principles, and advisor talking points to help clients implement incentives that protect value and support a smoother deal outcome.
Learning Objectives:
Attendees will:
- Learn how to apply a decision framework to determine if true equity, synthetic equity, or cash-based incentives best support retention, alignment with enterprise value, and successful succession or exit.
- Compare the structural, tax, governance, and valuation implications of key incentive/retention tools—minority equity, options/profits interests, phantom equity, performance units, stay bonuses, and deferred compensation.
- Recognize how a well-designed key-employee incentive/retention plan functions as a major enterprise value driver—reducing key-person risk, strengthening management depth, and improving outcomes for both third-party sales and internal transitions.
Event Location
Event Details
Who Should Attend?
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Attorneys
You have close relationships with clients, and can benefit from being the first advisor to introduce the idea of exit planning.
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CPAs/Accountants
Owners participating in the State of Owner Readiness research continue to indicate that you are the No. 1 "Most Trusted Advisor." You are a natural fit to lead the exit planning team and deepen your relationship (and retention) of next generation owners.
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Wealth Managers
You’re a skilled relationship person. Being entangled into your clients’ professional lives matters as you build a strategy to manage their wealth upon them harvesting it from their business. Exit planning allows you to build a deeper relationship with your client, expands your COI network, while giving you an early seat at table well before the liquidity event.
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Financial Advisors
One of the critical ‘legs of the stool’ is personal financing planning. An owner must have a strong financial plan & contingency plan post-transition to enable them to thrive in the next act of the lives personally and financially. Exit planning brings this future mindset into the present. Exit is now.
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Valuation Analysts
Valuation is both a billable engagement AND an opportunity to provide owners some perspective on how to accelerate value drivers (and deal with value killers). Use exit planning to make that valuation into a longer term value acceleration engagement.
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Investment Bankers
Only 2 of every 10 businesses that come to market actually sell. Learn how exit planning can bring attractive AND ready business to your purview.
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Strategic Consultants
One of the most critical roles in exit planning is building transferable value. Strategic consultants have the ability to expand options and drive rapid business value that affect performance today.
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Estate Planners
Exit planning is a natural fit for estate planners who want to operate more holistically with their owner clients.
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Insurance Professionals
Exit planning addresses the 5 D's. So do you. Approach the risk conversation differently with exit planning.
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Mergers & Acquisition Advisors
Proper exit planning causes less deals to fall through at the last minute. Connect with CEPAs to build your healthy deal flow network.
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Commercial Lenders
One of the best relationships a business owner makes is with their banker. How can you help your corporate clients think about the future and ensure financial continuity? Answer: exit planning.
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Family Business Advisors
More than 50% of lower middle market business owners would prefer to transition to the next generation. Help them succeed with exit planning strategies.
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Other Professional Advisors
Regardless of your unique specialty, there is seat at the exit planning table for you. Learn more at www.EarnCEPA.com.
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Private Business Owners
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Members of Family Business Boards
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Professional Advisors
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Business Consultants
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Other Business Professionals
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Business Owners
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Business Owners & Their Trusted Advisors
EXIT PLANNING IS GOOD BUSINESS STRATEGY
The Exit Planning Institute, provides Financial Advisors, Accountants, Consultants, and other advisors of business owners with the critical education to differentiate themselves and add value to their existing client relationships through a credential, conference, courses, and content. Download the CEPA brochure for more information.