Table of Contents

• COMMITTEE REPORTS
  • MEMBERSHIP REPORT
  • SOCIAL REPORT
  • SPEAKER COORDINATOR REPORT
  • TREASURER REPORT
• LEADS
• NOTABLE MENTIONS
• BUSINESS SPOTLIGHT
• MAIN SPEAKER

Committee Reports

Membership Report
(Click here to go to the Membership page)

Dave Spiess followed up with Mike Whalen and Gus Dekavallas about their applicants.  He also opened the floor to any other potential member nominees.  Greg Stewart knows a rocking chair furniture store owner that may be interested.  Denver Johnson would like to see another dentist join the group.

Social Report
(Click here to go to the Social Event page)

No report.

Speaker Coordinator Report
(Click here to go to the Speaker Schedule)

Main Speaker

• 09/23/05     Amy Ahrensdorf
• 10/07/05     Bob Becker

Treasurer Report

We are doing OK.

Leads Report

46-29, 16-15, 17-25, 17-13, 12-44, 12-48, 18-50 (x2), 28-20, 10-13, 07-13, 07-19, 15-27, 52-38, 38-06, 47-30, 03-34, 03-13, 04-30, 14-42, 43-34, 43-15 (x2), 25-14, 25-17, 48-03, 09-42.

This week's leads focus...

• Carole Weishaar
• Fred Vandervort
• Ken "Spanky" Moskowitz

Notable Mentions

Our thoughts and prayers go out to the Booth family for their recent loss.  If any members would like information on funeral services, please contact Melissa.

Our newest member, Spanky Moskowitz, had an incredible humanitarian adventure recently.  He organized a group of pilots from Arizona to take much needed medical supplies to the areas devastated by Hurricane Katrina.  We are proud to have you as a member, Spanky!

The deadline to get updates into the MABE brochure is Monday, September 19th.

The group agreed to retire number 39 in honor of former member Bill Sharp.

Business Spotlight 

None.

Business Succession
Panelist:  James Bache, Gus Dekavallas and Mark Dreher

Our panelist discussed different aspects of business succession today.  Below is an outline of issues that were addressed.

"The Sun is Setting on Your Life: Plan Now for Your Demise"

WHAT TO DO NOW

• Discuss goals with a team of advisors

• Speak with family or other successors to ascertain their goals

• Develop and implement a plan to accomplish goals

WHAT YOUR PLAN SHOULD ADDRESS

• Financial security for your family

• Equality of distribution

• Estate tax and other transfer tax

• Other tax efficiencies

• Consider successors talent, goals and desires

IMPEDIMENTS TO SUCCESS

• Lack of flexibility of grantor/owner

• Lack of equality among beneficiaries

• Lack of an integrated plan

• Lack of attention to tax apportionment clauses

• Lack of buy-in by beneficiaries

"What will happen to your business if you're not here?"

AGENDA

• Small business in the US (Gus highlighted the statistics)

• Planning for when you are not here

• The Buy-Sell Solution

• The Value of life and disability insurance

• How it works

• Taking the next step

VALUING YOUR BUSINESS

• Appraisal

• State and Price

• Formula

The first step is determining the value of your business.  Unfortunately there is no standard formula.  Every business and industry is unique. 

ENSURE THE FUNDING FOR YOUR BUY-SELL

• Management or family can borrow the funds

• Your company can save for it

• You can arrange to buy the business interest under an installment loan

• You can acquire life and disability insurance coverage

BUY-SELL AGREEMENTS

• Who will buy-sell?

• When will they buy-sell?

• At what price will they buy-sell?
  
  You must have a legally bound contract.  A written buy-sell agreement protects everyone.

DEATH OF OWNER

• Life insurance benefits

  • provides cash needed immediately

  • prevents drain on business profits

  • helps to quickly turn a non liquid asset into a liquid asset

  • the policy death benefits can be designed to increase over time to reflect the growth of the business
     

DISABILITY OF OWNER

• Benefits of disability insurance

  • minimum impact to the bottom line

  • can be used to pay disabled owners salary or purchase his interest

  • can be used to pay overhead

TYPES OF BUY-SELL AGREEMENTS

• Redemption/Entity

• Cross Purchase

• Unilateral Purchase

As you can see from the outline above, business succession is a complicated topic with many issues to address.  It is not something once can usually do quickly.  It is good to have more than one exit strategy.  Your plan should also make things as simple as possible for your family.  As the first bulleted item suggested, gather a team of advisors to help you draft your plan.