FBR Advisor Presentation
- 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