honeycutt, smith - exit planning
TRANSCRIPT
Exit Your Business in Style
Paul E. Honeycutt and Ronald F. Smith of Honeycutt, Smith & Associates
Honeycutt, Smith & Associates6310 Greenwich Drive
Suite 220San Diego, CA 92122-5902
PhoneSan Diego: (858) 200-0900Las Vegas: (702) 892-9911
Websitewww.honeycuttsmith.com
We help our business owner clients plan for the single, most critically important financial event of their lives – the transition out of their business.
Why Exit Planning?
Business Owners | Exit Planning Basics
Without exception, every owner leaves his or her company. Whether you do it in style depends on the specific exit planning actions you take before you leave.
If you see ownership change in your future, we can help you plan towards a successful business exit.
80% of business owners sell their business to retire.
50-75% of a business owner’s Net Worth is typically in their business assets.
Business owners usually have one chance to transfer their largest asset.
The value of your business will determine not only the quality of your life once you leave your company but how long you will have to stay in the business before you can leave.
Exit Planning helps business owners set, sort through, and pursue their exit objectives.
It enables owners to leave their companies when they want, to the successors they want, and with the amount of cash they need.
Exit Planning is a customized process of setting goals and deciding how best to achieve them.
Whether your successor will be your children, a key employee or an outside buyer, Exit Planning strives to help you maximize your financial return and minimize your tax liability when you transfer your business. If you die or become disabled before you retire, Exit Planning will help the business survive your departure—enabling your family to receive its full value.
The Seven Step Exit Planning ProcessTM
Step 1 – Identify Exit Objectives
Do you know your exact retirement goals and what it will take—in cash—to reach them?
The Seven Step Exit Planning ProcessTM
Step 2 – Quantify Business and Personal Financial Resources
Do you know how much your business is worth today, in cash?
The Seven Step Exit Planning ProcessTM
Step 3 – Maximize and Protect Business Value
Do you know the best way to maximize the income stream generated by your ownership interest?
The Seven Step Exit Planning ProcessTM
Step 4 – Ownership Transfer to Third Parties
Do you know how to sell your business to a third party and pay the least possible taxes?
The Seven Step Exit Planning ProcessTM
Step 5 – Ownership Transfer to Insiders
Do you know how to transfer your business to family members, co-owners, or employees while paying the least possible taxes and enjoying maximum financial security?
The Seven Step Exit Planning ProcessTM
Step 6 – Business Continuity
Do you have a continuity plan for your business if the unexpected happens to you?
The Seven Step Exit Planning ProcessTM
Step 7 – Personal Wealth and Estate Planning
Do you have a plan to secure financial independence for your family if the unexpected happens to you?
The Value To You
By completing our Value Driver brochure we will assemble information about your goals and how you currently measure and grow value. We’ll review your answers to determine: 1) if there is a gap between current business value and the value you will need to exit and 2) identify ways for you to close that gap. You will then have the tools you need to measure growth in value and to understand and determine what actions you can take to increase value.
A Successful Exit Requires Planning “...71% of small and mid-sized enterprise
owners plan to exit their businesses within the next ten years, strongly highlighting the growing importance of enhancing business value. However, the challenge is that few organizations genuinely understand what actions they must take to achieve this goal...”
-Deloitte & Touche LLP
FIVE STAR Wealth Managers
Financial advisors Paul Honeycutt and Ron Smith of Honeycutt, Smith & Associates have been named 2010, 2011, 2012, 2013, 2014, and 2015* FIVE STAR Wealth ManagersSM by San Diego Magazine.
San Diego Magazine partnered with Crescendo Business Services and surveyed over 68,000 high-net-worth households within the San Diego area to find wealth managers who scored the highest in overall client satisfaction.
*2011 and prior: Based on 9 criteria including; customer service, integrity, knowledge/expertise, communication, value for fee charged and overall satisfaction. 2012-2015: Based on 10 objective eligibility and evaluation criteria including: minimum of 5 years as an active credentialed financial professional, favorable regulatory and complaint history, fulfillment of firm’s internal review, accepts new clients, client retention rates, client assets administered, number of client households, education and professional designations. The award is not indicative of the wealth managers’ future performance. For more information please visit www.fivestarprofessional.com.
Paul E. Honeycutt, CFP® Practitioner, and Ronald F. Smith, CLU, ChFC are Registered Representatives and Investment Adviser Representatives with/and offering securities and advisory services through Commonwealth Financial Network, member FINRA/SIPC, a Registered Investment Adviser, CA Insurance License No. 0728831, 0688599. Financial Planning offered through H.S. Financial, Inc. in the States of CA and NV.
Contact Us
Honeycutt, Smith & Associates6310 Greenwich Drive Suite 220
San Diego, CA 92122-5902
PhoneSan Diego: (858) 200-0900Las Vegas: (702) 892-9911
Email [email protected] www.honeycuttsmith.com