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ConfidentialRevised as of June, 2008
Client: _________________________Agent: _________________________Date: _________________________
Business & Executive SolutionsFact Finder
Securities, investment advisory and financial planning services offered through qualified registered representatives of MML Investors Services, Inc., Member SIPC, 8 Cadillac Drive, Suite 150, Brentwood, TN 37027 (615) 309-6300. CRN201011-113754
Business Data
Business Name:__________________________________________________________________________
Address: _________________________________________________________________________________________
Business Organization:
Corporation Partnership Sole Proprietorship
Limited Liability Company Sub-Chapter S Professional
Date Established / Incorporated: _______________________
Started by Present Owners Ownership acquired by ______________________________________
How Taxed? C Corp. Partnership
Tax Exempt Profit Making Fiscal Year End ____________
Tax Basis: Cash Basis Accrual
Type of Business: Manufacturing Service Wholesale Retail Other
Describe Product or Service: ________________________________________________________________________
Employees:
Owner Employees
#_________Stockholders
#_________Partners
Other Officers –Key People
OtherSalaried
Non-Union Union TOTAL
Attorney: _____________________ Accountant: _______________Principal Bank: ________________
Business Plans
How is business? _________________________________________________________________________
Do you plan to stay in business? Yes No If No, Why? ________________________________
What do you want to accomplish with the business for:
Yourself?________________________________________________________________________
Your Family?_____________________________________________________________________
Your Employees?__________________________________________________________________
What are your plans for the next 5 – 10 years? Where do you want to be?
In the event of your: What would happen to your business? What would you want to happen?DeathDisabilityRetirement
Do you feel the control and value of your business should be retained for family members? Yes No
Have you made provision for the payment of your estate taxes and settlement costs? Yes No
Could the business survive if you took a two year vacation? Yes No
If you were to sell the business, do you have a price and a potential buyer at that price? Yes No
Price$_____________
Business Ownership & IncomePrincipal Owners Age Ownership % Title Annual
SalaryBonus Tax
Bracket %Key Employee Life Insurance
Could additional salaries or bonus be paid to owner employees? Yes No
Has any owner guaranteed or assumed personal liability for personal debts? Yes No
Name of owner Loan balance
$
$
$
Any ownership changes contemplated? Yes No
If so, what kind? ____________________________________________________________________
Key Employees: Non-OwnersName Age Title Annual
SalaryPotential Owner Yes No
Today Future
Key EmployeeLife Insurance
Would death or disability of any key employee:
Affect sales? No Yes Name:_______________________________________________________ Affect profit? No Yes Name:_______________________________________________________ Affect credit? No Yes Name:_______________________________________________________
What is being done to retain the services of key employees?
Business Financial Data
Approximate business net worth: $ ________________________
If a corporation, number of outstanding shares: Common __________________ Preferred __________________
Annual before tax earnings: Current year $ ________________ Past 5-year average $ ___________________
Value of Business
What is your estimate of today’s fair-market-value of the business $____________ Your interest $____________
Date your interest acquired:____________
Is that value used for Estate Tax calculations? Yes No
Does this estimate include an allowance for goodwill? Yes No
If you were to sell now, would it be that figure? Yes No
Is this the value you would want your family to receive? Yes No
Do you feel the business will increase in value over the next few years Yes No
Realistic annual compound growth rate? _________% Current Annual before tax earnings?________
Business Disposition Objectives Continue …Sell … Liquidate …
Continuation:Should the business be continued by your family after your death? Yes No
Who would you want to take over your interest?
Name Date of BirthOwnership %
Today FutureRelationship Position in
Bus. Occupation if not in Business
Who should have ownership if control had to be assumed?
Now_____________ Later______________ When_____
Has this been provided for? Yes No How? Will Agreement Trust
Would management help be needed during this change? Yes No Provided by:_____________
Would cash be available to support this ownership transfer? Yes No
Sale of the Business:Would the business be sold after your death? Yes No
Who would purchase your interest?
The Business Business Associates Employees
Family Member Outsiders
Is there a binding agreement? Yes No
Effective Date: ______________________________
What Type?
Binding on Purchaser
Purchaser has Option
Purchaser first right of refusal
What is the purchase and sale price? $______________________
How is it determined?
Specified Amount Book Value Appraisal
Formula Other ______________
Is goodwill included? Yes No
How is purchase price to be paid?
Lump Sum Installments of $____________over____________
Where will cash come from?
Business Income Sinking Fund Personal Assets
Loan Life Insurance
Life Insurance Funding:
Full Value Partial value of $ _______________with balance paid over_________________ years.
If there is NO agreement, could a buyer be found? Yes No
Who? ______________________________
What price would you sell for today? $________________
Could a buyer be found at that figure? Yes No
Benefit Plans for Owners & Employees
1. Group Insurance
Life Yes No (If No, any interest? ________)
Carrier:_____________________________________________
Insurance schedule: Emp Class Amount # of Emp’s covered, etc.
Medical Yes No (If No, any interest? ________)
Carrier:_____________________________________________
Obtain particulars of coverage, anniversary date, etc.
2. Employee Payroll Deduction Plans
Life Yes No (If No, any interest? ________)
Carrier:_____________________________________________
Insurance schedule:____________________________________
Employer Contribution? Yes $ ___________ No
Disability Yes No (If No, any interest? ________)
Carrier:_____________________________________________
Monthly income benefit $________
Waiting Period: ____________ Benefit Period:_____________
Employer Contribution? Yes $ ___________ No
3. Qualified Plans
Do you currently have any qualified retirement / savings plans in effect? Yes No
_ If No, why not adopted? ______________________________________________________________
_ If Yes, type of plan:
Pension – Defined Benefit Profit Sharing Cafeteria
Pension – Defined Contribution____ 401(k) Employee Stock Ownership Plan
SEP IRA Other ____________________
_Plan year-end: ________________________ Administrator:___________________________
_Type of funding:_______________________ Date established: __________ Trustee? ______
_Contribution formula: __________________ # participants: _____________________________
Thought Provoking Questions
If you die or become permanently disabled, what should (or what do you want to) happen to your business interest?
If the business is going to be sold or liquidated:
- At what price?
- Who will purchase the business?
A competitor?
Other business owners?
A key person?
A stranger?
How long will it take for the family to sell?
What will happen to your child(ren) working at the business?
What will happen to key employees?
What will happen to minority business owners?
Is it likely that legal proceedings will be filed by your beneficiaries or the surviving business owners in order to obtain control of the business?
Will the business be sold in time to pay estate taxes when due?
Which estate assets will be sold to pay estate tax attributable to the business?
Do you realize that the Internal Revenue Service may take a position that the business is worth more than you believe?
If one of your co-shareholders dies, would you be willing to accept his or her heirs into the business as active participants? Are they capable or experienced enough to carry their load as employee-manager? Would you be able to get along with them?
Would you be willing to live with his or her heirs as inactive participants? Will they want more dividends than you are willing to pay? Will they need more income from the business than it can produce without them contributing to the earnings? Will they be cooperative and support your methods and ideas of how the business should be run?
If your co-shareholder’s heirs (or their guardians if they are minors) gain control of the business, what happens to your position as an employee?
Thought Provoking Questions
Would you be willing to work with an outsider who purchases the stock of a deceased co-shareholder from their heirs? Can he or she work effectively with you and you with them? Will that person be an asset or a detriment to the business?
Would you consider selling out to the heirs of a deceased co-shareholder? Could they afford to buy you out? What will you do after you sell yourself out of a job?
Would you want to buy out the heirs of a deceased shareholder? What impact will that cash drain have on both you and the corporation?
If you plan on someone buying you out, can they afford to do so without draining the cash flow of the corporation? If the business cannot afford to continue paying the note to you, how will you derive retirement income? If you predecease your spouse and the business cannot afford to continue paying, how will they maintain their lifestyle?
What do you currently have in place to protect your employee’s financially in the event of an illness or injury?
Knowing that employee retention is huge in today’s market, what value added programs do you offer to your employee’s to separate yourself from the competition?
If you could expand or enhance your compensation package at minimal cost and help build better loyalty with your employee’s what would that be worth to your bottom line?