Wealth Transfer for Business Succession & Estate Planning

1. FBR System Advisor Presentation
The following
proprietary
information is
the property of
FBR System
and may not be
used or copied
by any
unlicensed user.

2. Goals and Objectives
Topics Covered
Review Current Transaction approach
Introduce proven process model
Company overview
Background of the FBR System
 How the FBR System differentiates from the
traditional transactional approach
FBR system benefits and opportunities
Next Steps

3. Company Overview
 Founded by Karl Bareither in 1969
 Redefined the traditional transaction approach to
both succession & estate planning that includes
the whole family as the client
 Introduced a fee-based process consulting
service to the industry by becoming a trained
Wealth Transfer Specialist (WTS)
 Developed the FBR System Model, software &
proven sales tools
Result:
Over 40 years
helping family
businesses
successfully
transition
wealth to the
next
generation.

4. Current Transaction Model
Presentation
Close
Understand Needs
Develop Relationship
40%
30%
20%
10%
Supports Advisor’s Agenda

5. Presentation
Close
Understand
Needs
Develop
Relationships 40%
30%
20%
10%
The FBR Transformation
Build relationships with all family members
Supports Clients’ Objectives

6. What is the FBR System?
The Family Business
Renewal (FBR) System is a
process that considers the
whole family as the client and
guides family businesses
through succession planning
& estate planning, using the
FBR Model that includes a
holistic solution.

7. Why was the FBR System Developed?
$4.28 billion of
family wealth is
transferred yearly, yet
70% of the businesses
do not survive the
transfer successfully.

8. Benefits to
the family
and the
business.
Makes Both Dollars and Sense!
Through this unique succession planning
process, FBR System has effectively saved
families “millions” of dollars while
maintaining family harmony and successfully
transferring business wealth to the next
generation by treating the entire family as a
client and moving beyond a transactional
approach to a relational process.

9. Benefits Both the Family and the Business
The FBR System process helps to:
Minimize taxes
Enhance open family communication by eliminating
secrecy
Maximize business profitability
Impact both the business and the entire family during
life and death
Establish greater success in transferring wealth from
one generation to another by including all family
members

10. There are times that the traditional model may
be more effective; the following are some
examples:
When the estate consists mostly of liquid
assets
No heirs interested in maintaining the
business
Business Owner unwilling to engage heirs
When to use Transactional vs Fee For Service

11. Client Decides Approach
Transactional
1. Work with Business Owner only
2. Receive commissions on products sold
Fee for service
1. Consults individually with all family
members
2. Charge a consulting fee for services
provided
3. Receive increased commissions on
products sold
Both
methods
can
benefit
from
using the
FBR
Model

12. Which Approach Best Meets The Needs of Your Client’s
Transactional
approach
Service
Consulting Fee
Engage the entire family No Yes
Meet individually with family members No Yes
Involve all advisors Optional Yes
Facilitate a family retreat No Yes
Integrate input from family members into recommendation No Yes
Receive a fee for value added service No Yes
Primary agenda is to sell a life product Yes No
Receive a commission on products sold Yes Yes
Transactional Approach VS Service Approach

13. Finding Business Owners
Third Party Sponsorship:
 Trade Associations
 Banks
 Credit Unions
Standard Prospecting Includes:
Natural markets
Referrals
Centers of influence
Personal observation

14. This successful and
proprietary model
consists of:
 Three phases
 Nine steps
Results in benefits!
Overview – FBR System Model
1
2
3
4
5
67
8
9
Your
Wealth
Transfer
Plan

15. FBR System Model Phases
PHASE I
Examine
the current
plan
 Interview process
 Determine Objectives
 Analyze current plan
1
2
3

16. FBR System Model Phases
PHASE II
Develop a
new plan 4
5
6
4. Determine
transfer options
5. Seek advisors
input
6. Develop new plan

17. The FBR System Software
FBR System has a proprietary software
This software system features:
 Tools to organize facts, figures, and members of
the whole family by incorporating FBR System’s
Fact Finder Worksheet
 The incorporation of the newest tax laws
 The ability to customize reports to reflect
company’s brand
 A user-friendly interface providing a variety of
options for family businesses to plan for a
successful present and future

18. FBR System Model Phases
Phase III
Present
and
implement
new plan
7
8
9
7. Present new plan
at family retreat
8. Present liquidity
options
9. Implement and
monitor agreed to
plan

19. Phase II
Develop
New
Plan
Phase III
Present &
Implement Plan
The FBR System Model
1
2
3
4
5
67
8
9
Phase I
Examine
Current Plan
Your
Wealth
Transfer
Plan

20. Benefits to the Sponsoring Organization
 By implementing the FBR System it properly
aligns you in the family owned business
market. It also benefits your company by:
 Making you stand apart from the competition
 Providing a turn-key marketing program for
advisors
 Generating new consulting planning fee
revenue
 Increasing new life insurance product sales
Benefits of
the FBR
System

21. Fee For Service Model
The FBR System is a Fee for
Service Model.
Fee Agreement is Based on:
Complexity of Business
Family Objectives
Number of Family Members
Size of the Business
Number of Businesses
Scope of Engagement

22. Production Comparison Per Case
Today:
Estimated
Current Life
Premium
FBR SYSTEM Estimated Revenue
Life premium on
a wealth transfer
case
(Example only)
Consulting Fees
(Includes all
Three Phases)
Annual
Premium
Total FBR System
Compensation
Opportunity
Low Range
$7,500 $15,000 $15,000 $30,000
Mid Range
$15,000 $30,000 $30,000 $60,000
High Range
$30,000 $60,000 $60,000 $120,000
Fee is Paid following
each completed phase.
Limited warranty
applies.

23. Benefits to Advisors
The FBR System provides advisors a
proven turn-key process and proprietary
model to:
Position & differentiate WTS within the
marketplace
Provide a new revenue source with
consulting planning fee income
Increase life product sales
Favorably position you as a third party
sponsor
Benefits of
the FBR
System

24. FBR System Consulting Fee
If you complete ten business owner wealth transfer
cases per year (at the lower fee range) you can assume
an estimated total revenue of $300,000.
Breakdown - Example:
Fee 10 cases X $15,000 = $150,000; assume equal life
insurance product sales at $150,000 premium;
Total Fee Plus Life Premium = $300,000 Revenue
Note: We are displaying the most conservative fee option; ranges are high, medium, or low.
There is potential to move beyond what is being projected by moving into the higher fee
range. The FBR System model gives you that opportunity.
Example

25. FBR System Opportunities
The FBR
System is
a Turn
Key
Marketing
System
• Advisor/Broker becomes a
licensed Wealth Transfer
Specialist
• Licensed user pays a monthly fee
(with a minimum of one year
commitment; renewable annually
thereafter)
• Broker is required to attend
training program either on-line or
in person
WTS

26. FBR System Commitment
To deliver:
A quality turn-key FBR System
Effective training to develop Wealth Transfer Specialists
Web-based software accessible 24/7
Ongoing consulting and coaching
Webinars to address the needs, questions and concerns of WTS
Marketing materials
Study Guides
Presentations and supporting scripts
Fact Finder
Fee Agreement
Joint work opportunities

27. Contact us to learn
how you can
become an
effective Wealth
Transfer Specialist.
Moving Forward Together

28. FBR System
www.fbrsystem.com
805.595.2089
Karl Bareither
Founder, CLU, Wealth Transfer Specialist
karl@fbrsystem.com
Contact Us