May 28, 2008

Add exit planning to your arsenal

This week's tip comes to us from John M. Leonetti, managing director of Pinnacle Equity Solutions, a Boston-based training and consulting firm that specializes in exit planning strategies for boomer business owners.

"According to a 2002 NFO WorldGroup study, the number of retiring business owners is expected to grow from 50,000 per year in 2001 to 750,000 per year by 2009. This suggests that a massive wealth transfer has begun, in which pro-active advisors can position themselves to participate. Many of these business owners are already clients or prospects.

Imagine the valuable service an advisor can provide - and additional fees one can earn - by practicing business exit strategy planning. Clients prefer to work with more than one financial advisor during their 'accumulation phase'. But during the 'distribution' - or 'exit' - phase, that client needs one trusted advisor to devise an 'income replacement' strategy, one of many steps toward a successful business exit. So, this trusted relationship hinges on the ability of an advisor to help the client reach all of their financial goals. Why wait for a savvy competitor to lure a client away with a comprehensive set of exit strategy solutions? Take action by combing your list of clients for private businesses owners."

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