Exit State of Owner Readiness Survey Question Title * 1. What is your current age? Under 40 40 to 52 53 to 71 Over 70 Question Title * 2. What is your gender? Male Female Prefer not to answer Question Title * 3. What is the range of your company's annual revenue? Below $5 million $5M to $25M $25M to $50M $50M to $100M Over $100M Question Title * 4. How was your business started? From scratch Received from family Purchased from family Purchased from third party Other (please specify) Question Title * 5. What is the ownership structure of your company? Family owned (100%) Family owned with outside ownership (family controlled) Family owned with outside ownership (outside ownership controlled) Outside ownership (9199%) Public company - not privately held Employee Stock Ownership Plan (ESOP) Question Title * 6. If family owned, how long has your company been owned by the family? One/first generation Two/second generation Third or more generation Don't know Question Title * 7. What industry are you in? (Select one) Retail Wholesale trade or distribution Energy Business/Professional services Technology/Communications Utilities Transportation Construction Manufacturing Healthcare Education Real Estate Insurance/Financial services Other (please specify) Question Title * 8. How is your business organized? Limited Liability Corporation S-Corporation C-Corporation Family Limited Partnership ESOP Other (please specify) Question Title * 9. In what region is your company located? Wisconsin Minnesota Iowa Illinois East Coast South Rocky Mountain Region West Coast Other (please specify) Question Title * 10. When are you planning to transition the ownership of the company? One to two years Three to five years Six to ten years No plans to transition Question Title * 11. Have you completed any formal education related to transitioning a business Yes No Question Title * 12. Are you familiar with all your transition options? Yes No Question Title * 13. How much do you agree with the following statement? Having a transition strategy is important for my future as well as the future of my business? (Select one) Strongly agree Agree Somewhat agree Disagree Unsure Question Title * 14. Have you sought outside advice regarding your transition plan? Yes No Question Title * 15. Have you established a formal transition advisory team? Yes No My Board of Advisors acts as my transition advisory team Question Title * 16. Please check all advisor types that are on your transition team. Corporate Attorney Estate Attorney Mergers & Acquisitions (M&A)/Securities Attorney Certified Public Accountant (CPA) Wealth or Financial Advisor Exit Planning/Value Growth Advisor Insurance Professional M&A Advisor/Investment Banker Spouse Other family (non-spouse) Banker/Leander Other (please specify) Question Title * 17. Who do you see as your must trusted advisor (select one)? Banker Accountant Attorney Financial Advisor Insurance Professional Another business owner or peer group Spouse Other family member (non-spouse) Other (please specify) Question Title * 18. Do you have outside (non-owner/non-family) board members on your Board? Yes No We do not have a board of advisors or directors Question Title * 19. Which statement best describes your pos-transition plan for what you will do after you transition your business ownership? I have a written, formal plan of what I will do next I have a good, informal plan of what I will do next I have some ideas, but not a formal plan at this time I have not really thought about what I will do after I transition my business ownership Question Title * 20. If you have a personal transition plan indicated in the previous questions, please check all that your plan encompasses (select all that apply) Written goals & objectives Written action plan Personal readiness assessment for transition Personal risk assessment Documented and updated Personal Financial Plan Written tax minimization plan Written estate plan Written and updated WIll Question Title * 21. What do you plan to do post-transition (Select all that apply)? Philanthropy, civic or community work Retire Semi-retire Buy another business Invest in another business/serve on a board of another business Consultant No plans on what to do next Other (please specify) Question Title * 22. On the following scale, please rate how "ready" you consider yourself personally to transition away from your business and do something else (1 = not ready at all; 6 = completely ready) 1 2 3 4 5 6 1 2 3 4 5 6 Question Title * 23. How comfortable are you that your managerial team will be successful with the new ownership? Very comfortable Some concerns Uncomfortable at present time Have no thought about it Question Title * 24. What best describes the level of family awareness of the managerial and ownership transition plans? Aware of both the managerial and ownership transition plans Aware of managerial only Aware of ownership only Not aware of either managerial and ownership transition plans I do not have a transition plan Question Title * 25. How often do you have formal family meetings with regards to the business? Multiple times per year Once a year Less than once a year Never Question Title * 26. If managerial plans include key positions being filled by family members, how would you assess their level of readiness for this responsibility? All family members filling key positions are ready Some family members filling key positions are ready No family members filling key positions are ready Family members will not fill key positions going forward Question Title * 27. If managerial plans include key positions being filled by family members, which of the following best describes measures being taken to train these family members for their positions (excluding college training)? Formal training within the company only Formal training outside the company only Formal training inside and outside the company No formal training; only on-the-job N/A - We are not a family business Question Title * 28. If there are multiple owners/partners in your business, do you have a written buy-sell agreement and has it been updated in the last three years? Yes. It is written and has been updated in the last three years There is a written buy-sell agreement but it has not been updated in the last three years We do not have a written buy-sell agreement even though there are multiple shareholders I own 100% of the business Question Title * 29. Is your buy-sell agreement funded by life insurance and/or disability policies? Yes, both life and disability insurance are in place Life insurance only Disability insurance only No, neither life or disability insurance is in place to fund a transition Question Title * 30. Do you have a documented contingency plan in place for the business that addresses the possibility of a forced transition caused by death, divorce or disability? We have a plan, but it is not written or documented We have a written plan There are no contingency plans Question Title * 31. Is your contingency plan funded by life and disability insurance? Yes, both life and disabliity insurance Life insurance only Disability insurance only No, neither life insurance or disability insurance Question Title * 32. What best describes your company transition plan? We have a plan, but it is not written We have a written plan, but it has not been communicated to management We have a written plan that has been communicated to management, but it has not been communicated to the employees We have a written plan that has been communicated to management and employees There are no contingency plans Question Title * 33. If you have a company transition plan indicated in the previous question, please check all that your plan encompasses (Select all that apply): Written goals and objectives Written action plans Business market attractiveness assessment Business readiness to transition assessment Business risk assessment Recasted financial statements Business valuation Stated value growth target or goal Strategic analysis and value enhancement plan Written transition or value growth budget Evaluation of ALL transition options Question Title * 34. What best describes how you are planning on transitioning? Internally - Transfer ownership within the family Internally - Employee Stock Ownership Plan (ESOP) Internally - Management buy-out/buy-in Internally - Sale to existing shareholders Externally - Third party strategic buyer, private equity or non-family individual Externally - Recapitalization through passive investors or other financing Externally - Orderly liquidation/simply close Not sure Other (please specify) Question Title * 35. Does your ownership transition plan require the company to remain profitable for your plan to be properly executed? Yes - It is critical for the company to be successful for the ownership transition It would be helpful for the company to be successful for the ownership transition No, the success of the ownership transition is not really affected by the future success of the business I do not have a transition plan Question Title * 36. Which of the following represents your current understanding of the value of your company? I have a good idea of what it is worth I am not sure what my business is worth I have had my business formally valued in within the past two years Question Title * 37. Have you completed, in the last two years or have currently underway, a formal pre-transition value enhancement/preliminary due diligence project to reduce risk in the business, maximize its value and position it to successfully transfer to a new owner? Yes No Question Title * 38. How foccued are you and your management team on growing the value of your business (Select all that apply) We regularly measure and formally keep track of our business valuation Key management is aware of the business value Key management has objectives and incentives that are specifically tied to value growth gains We measure and track the value of our intangible assets v. tangible assets We produce regular recasted financial statements None of the above. Growing the business value is not the primary goal of the business. Question Title * 39. On the following scale, please rate how "ready" your business is to successfully transfer to a new owner. (1 = not ready at all; 6 = completely ready) 1 2 3 4 5 6 1 2 3 4 5 6 Question Title * 40. On the following scale, please rate the strength of your personal financial position (strength of financial assets NOT including the business. (1 = weak; 6 = very strong) 1 2 3 4 5 6 1 2 3 4 5 6 Question Title * 41. Do you need the income produced by the business to support your present lifestyle? Yes, the business provides most of the income to support my present lifestyle No, my passive investments outside my business produce enough income to support my present lifestyle I am not sure Question Title * 42. Have you determined ho much you NEED (not want) to net, after taxes, from the transition of your company to fund your retirement or future goals? Yes No Question Title * 43. Do you need (not want) to harvest the value of the business to support your lifestyle post transition? Yes. I need, not want, to harvest the value of my business to support my post-transition lifestyle No. I have adequate financial resources outside of the business to support my post-transition lifestyle I am not sure Question Title * 44. Has you tax minimization plan been updated for the most recent tax law changes? Yes I have a tax minimization plan but it has not been updated I do not have a tax minimization plan Question Title * 45. Has your estate plan been updated in the past two years? Yes I have an estate plan, but it has not been reviewed and updated in the past two years I do not have an estate plan Question Title * 46. Does your estate plan provide for the sale of your business? Yes No Question Title * 47. Does your estate plan include an updated valuation of your business? Yes No Question Title * 48. How would you best describe the level to which you have incorporated the transition of your business into your personal financial and estate plan? Incorporated into both financial and estate plans Incorporated into financial plan only Incorporated into estate plan only I haven't incorporated it into either financial or estate plans Done
