Generating Sales in the Business Market

For financial professional information only. Not for distribution to the public. More than 28 million small businesses % of U.S. firms have fewer than 500 employees 2 19% of family business participants have not completed any planning other than writing a will – and only 36% have an exit plan. 3 At any given time, 40% of businesses are wrestling with transfer of ownership and control. 4 Over the next 20 years, $4.8 trillion of net worth will be transferred. 4 Small Business Means BIG Business For more than 60 years, The Principal has focused on serving the needs, challenges and opportunities faced by business owners and executives. 1. U.S. Small Business Administration Office of Advocacy, Frequently Asked Questions, March SBA office of advocacy: 3. Family Firm Institute: 4. Family Firm Institute, 2009

For financial professional information only. Not for distribution to the public. Need for Business Planning Create a market for the business when an owner exits Ensure retirement income is in place Minimize discord among owners Prevent unwanted transfers Fix the value of the business interest for estate tax purposes Provide the family with liquidity to maintain their standard of living Knowing the value of the business, along with a properly structured buy-sell plan, and proper funding/protection can help:

For financial professional information only. Not for distribution to the public. Business Owner & Executive Solutions

For financial professional information only. Not for distribution to the public. Our purpose: Experienced sales support Personalized consulting Our people: Attorneys CPAs, MBAs BOES Wholesalers Case design specialists BOES: Your Team, Your Resources Over 200 years experience Credentials employed: JD*, CPA*, CLU, ChFC, CFP ®, MBA Expertise in: –Executive benefits –Exit/succession strategies –Estate planning –Financing options/ product fit *JD is an educational degree and holder does not provide legal services on behalf of the companies of the Principal Financial Group ®. *CPA does not provide tax or accounting services on behalf of the companies of the Principal Financial Group ®. Advanced Solutions

For financial professional information only. Not for distribution to the public. Approaching business owners made easy Informal business valuation Review of major provisions of the buy-sell/funding Start discussions with tax and legal advisors Identify issues and confirm the agreement meets current objectives Open Cases with Business Planning Services Business planning services opens the door to planning opportunities! Start with the Business Planning Services Fact Finder to uncover needs. Then use the Business Priorities Checklist to help prioritize needs.

For financial professional information only. Not for distribution to the public. Converting Profits to Wealth

For financial professional information only. Not for distribution to the public. Business Planning Services Fact Finder

For financial professional information only. Not for distribution to the public. Funding of Buy-Sell Informal Business Valuations Generate sales with buy-sell reviews Identify and fund unmet financial needs Key Person Protect against the loss of a shareholder and safeguard their most valuable employees Easy-to-use calculator helps determine how much life insurance your clients need on their most valued employees Includes quick quote for 10-, 15-, 20- and 30-year term insurance NQ Supplemental Retirement Use our online calculator and implement solutions to fill the retirement income gap Top Sales Opportunities Targeted Approaches

For financial professional information only. Not for distribution to the public. Buy-Sell Review or Implement a Business Continuation Plan Request a complimentary buy-sell review Implement a business continuation plan

For financial professional information only. Not for distribution to the public. When was the last time you had your Buy-Sell reviewed? Have you confirmed what your business is worth? Does your buy-sell agreement refer to a purchase price? Has that price been reviewed recently? Is a successor named? (Would you want to be partners with your former partner’s widow?) Are all possible “triggers” included? Is a “mandatory buy-out” required upon death and/or disability? Is “disability” defined and consistent between your agreements and any insurance contracts? Buy-Sell Review: Key Questions

For financial professional information only. Not for distribution to the public. Buy-Sell Review Services DeathDisability Bankruptcy/ Insolvency Divorce Termination of Employment (voluntary and involuntary Retirement Common triggering events: Accomplish an orderly transfer of a business interest The Principal offers complimentary buy-sell reviews, sample agreements and a continuation proposal outlining how to get an agreement implemented

For financial professional information only. Not for distribution to the public. Most business owners we talk to tell us their business IS their retirement.. TOP THREE TRANSITION EVENTS Percentages of business owner agreements that cover the top three transition events and those that include them as mandatory triggers* *Source: Review of 720 buy-sell reviews by the Principal Financial Group®, January 1, 2011, – July 31, % 70% 62% 35% DEATH DISABILITY RETIREMENT 12% 23% Mandatory buy-out events But many aren’t sure they’ve taken THE NECESSARY STEPS to make that a reality?

For financial professional information only. Not for distribution to the public. Exceptional service tailored to your business – Dedicated staff – Program-level reporting – List billing – Online access – Ongoing support Business Market Administration Leave the Details to Us

For financial professional information only. Not for distribution to the public. The BOES Platform BeforeDuringAfter Broker sales ideas Client marketing materials Priorities checklist Complimentary informal business valuation Complimentary buy- sell review Access to Advanced Solutions staff for technical support Point of sale assistance More than 30 unique plan designs Customized proposals showing multiple financing options Products and underwriting for the business market (including GI/SI on all permanent products) Business Markets Administration - comprehensive plan- level services Annual employee and employer reporting Online access Economic benefit & 101j reporting Over 30 plan types, 10,000 plans on the books, serving more than 25,000 participants Service Before, During and After the Sale

For financial professional information only. Not for distribution to the public. Prime Candidates Manufacturing companies Construction companies Professional service-related companies –Law Firms –Dental Firms –Accounting Firms IT companies Three years profitability S Corps, C Corps, LLC’s, PC’s, Partnerships Refer to “Generate Sales with Informal Business Valuations & Buy-Sell Reviews (BB10350)”

For financial professional information only. Not for distribution to the public. Getting Started Contact Dunhill Marketing: