Roughly 80% of a typical owner’s net worth sits inside the business — and so does a set of insurance decisions that rarely gets examined until diligence forces the issue. Stale buy-sell funding, entity-owned policies exposed by Connelly v. United States, term coverage that expires before the exit window, and key people with no reason to stay through a transition are all de-risking problems. They are not product problems.
This session maps life insurance onto the three gates. In Discover, we cover what to inventory and the findings that most often surface. In Prepare, we work through buy-sell design after Connelly, key person protection, and the executive benefit structures — bonus arrangements, SERPs, and split-dollar — that hold Human capital in place through the sprints. In Decide, we address estate liquidity, non-business heir equalization, and what happens to existing policies at close.
Attendees leave with a one-page insurance de-risking checklist for any owner engagement
Learning Objectives:
- Identify the life insurance and buy-sell findings that most commonly surface during the Discover gate and explain where each one creates transferable-value or liquidity risk.
- Evaluate buy-sell funding designs in light of Connelly v. United States - cross-purchase, insurance LLC, insured-controlled cross-purchase, and endorsement split-dollar, including transfer-for-value exposure when restructuring existing policies.
- Compare executive benefit structures (executive bonus, restricted executive bonus, non-qualified deferred compensation/SERP, and loan regime or endorsement split- dollar) as tools for retaining Human capital through the Prepare gate and through diligence.
- Apply a personal-side liquidity checklist at the Decide gate covering estate tax exposure, equalization for non-business heirs, and disposition of business-owned policies at close.
- Determine when an independent, fiduciary insurance review belongs in the owner’s Prioritized Action Plan — and what structurally qualifies someone to perform one.
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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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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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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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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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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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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Private Business Owners
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Members of Family Business Boards
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Business Consultants
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Professional Advisors
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Business Owners
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Other Business Professionals
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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.