Business Owner: Position Yourself as a Highly Sought Resource

Our country is on the leading edge of the greatest transfer of wealth America has ever seen. Boomer generation business owners transferring their companies to family members or others account for this tidal wave of wealth.  With that in mind, Forbes contributor Steve Parrish wrote “How to Retain Control, Even As You Exit.” It’s a must-read for the advisor who wants to work with business owners and their key employees.

Parrish’s insights will help you grasp concepts and techniques you can apply in business-owner situations – for clients or prospects – in a way that doesn’t leave you lost in the weeds.  The article helps you stay in tune and gives ideas for strategies to be a valuable resource to this lucrative group.

If you’re unsure how to approach a business owner about an exit strategy that leads to life solutions, here are conversation starters I used when I was a producer in the field:

    • “Have you established a plan to handle estate taxes?”
    • “What is your vision for the future of your business?”
    • “Does the IRS prevent you from saving enough for retirement in a tax-deferred manner?”
    • “Are you dependent on the sale of your business for retirement?”
    • “Who do you lean on for financial advice? Have you ever discussed your exit plan with them?”

Give CreativeOne a call if you’d like to discuss strategies that open up conversations about business-owner exit strategies – as well as position yourself as a highly sought resource for your business clients and their families. 800.992.2642


Steve Parrish

How to Retain Control, Event as You Exit

Steve Parrish, JD*, CLU®, ChFC®, Forbes Contributor

“It’s too early to do exit planning; I need to retain control of my business!”  It’s always a feel-good moment for me to let a business owner know that these two concepts are not mutually exclusive. There are myriad ways to begin the exit process from your business without giving up management control.  Below are some ideas to structure for an eventual departure, without having to hand over the keys to the business right now.

Share the ownership, but retain the vote

This is easier to accomplish than you might imagine. First, most standard business entities allow an individual to own a part of the business without sharing in the voting control of the business.  For example, a corporation can be recapitalized to have voting and non-voting stock. Even with an S Corp, where there can only be one class of stock, it is permissible to differentiate voting and non-voting shares. In an LLC, this can be handled by structuring the entity as “manager managed.” Finally, even in a partnership environment, the business can be structured as a limited partnership.  Only the general partner has management control of the business.

Every exit plan is different, and you can transfer the non-controlling element in the way that fits Read more >>



*While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that the author is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. *JD is an educational degree and the holder does not provide legal services on behalf of the companies of the Principal Financial Group.

© 2013 Creative Marketing International Corp.

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