The Three Pillars of an Exit Plan – A Post-Pandemic Tune-Up

The Three Pillars of an Exit Plan – A Post-Pandemic Tune-Up

Published on Aug. 25, 2021

The United States appears to have decisively turned the corner on the Covid-19 pandemic, following a year mired by uncertainty and change. The U.S. jobs market is heating up, households are armed with savings, and U.S. corporations delivered better-than-expected earnings in Q1 2021.

Investors, businesses, and consumers are focused on the future, and that’s great news.

Over the past few months, I have been talking to family, friends, colleagues, and clients in funeral service about lessons they have learned in the past year. I’m curious how folks think the future will look different. Interestingly, just about everyone gives a different answer about the future of work, life, and daily interactions. To me, the variety of responses is the clearest indication that the uncertainties of the past year have given way to uncertainties about the future.

To me, there is no better way to counter uncertainty than by making a thoughtful, detailed, and ultimately written plan. For many funeral service and cemetery professionals, this may mean taking a look at your business, its value, and your personal financial goals to ensure you have a clear vision for what you want the future to look like. In other words, now is the time to give your financial plan and your exit plan a post-pandemic tune up. I’ll focus on what you need to know for your exit plan here.

The Three Pillars of an Exit Plan

The three pillars of an exit plan are really three sets of questions that funeral service and cemetery business owners need to ask themselves.

Question 1: In order to leave or sell your business, how much would you need to receive in equity and/or after-tax proceeds?

Within the context of the pandemic and the past year, a key data point for all business owners is figuring out how much your business valuation changed. Did the pandemic cause it to increase or decrease? Do you think pandemic-driven forces – like changes to real estate prices, the jobs market, technology’s effect on how businesses offer services, and the changing wants and needs of client families  – bode well for the future of your business or work against it?

Answering these questions will not only give business owners a sense of what their business is worth today, it can also begin to address key questions about how the business’s valuation could change in the years ahead.

Another critical issue to think about here is what could happen to the value of your business if tax rates move higher. While we are not tax experts and we urge you to speak to your tax advisor about these issues, here is a hypothetical example to consider:

  • Scenario 1: Business owner sells his business in 2021 for $1,500,000. Using 20% federal capital gains rates, the owner receives $1,200,000 net of taxes.
  • Scenario 2: Business owner sells his business in 2023 for $1,500,000. By then, capital gains rates have increased to match ordinary income rates (39.6%) for those who earn more than $1,000,000. In this scenario, the owner receives $906,000 net of taxes.

The $300,000 difference between the two scenarios is not a small sum, which is precisely why these types of issues should be front-and-center in exit planning today.  

Question #2: When do you want to leave or sell your business?

The decision whether to sell now versus later can be dictated by tax expectations, as demonstrated above. But owners also need to consider the conditions throughout the profession and personal circumstances.

In the funeral service and cemetery profession, an owner may want to strongly consider selling during a period of heightened consolidation, attractively-priced deals, and low cost of capital (for example). The macroeconomic environment also plays a role – if the economy is in growth mode and expanding, there may be more years left in the cycle to accumulate additional value.

On the personal side, many owners need to weigh factors like lifestyle needs, desire to retire versus to work, family life, and/or desire to pursue philanthropic pursuits. At the end of the day, what the business owner wants for themselves personally needs to play a decisive role in how an exit plan is shaped.

Question #3: Who are the possible successors or acquirers of the business?

In all likelihood, the pandemic revealed new information about prospective successors or buyers for the business. Maybe the key employees you had in mind to take over the business struggled to meet the challenges posed by the pandemic. On the flip side, maybe you were surprised by how a family member or a third party stepped up over the past year, shifting your thinking completely about who is best suited to take over the business.

At the end of the day, finding and training a successor is almost certainly a multiyear process, requiring a lot of attention and energy. Owners should consider whether the pandemic made it more – or less – clear who is qualified to lead the business into the future.  

The last point to make is that exit planning is a dynamic, methodical, ongoing process – it is not a single event! Owners should not expect to make an exit plan once and never revisit it. Over time, financial situations change, timelines change, personal needs change, taxes change, and the economics of funeral service changes. The pandemic, of course, was a catalyst for change – which to me means owners and investors need to respond by tuning up your financial and exit plan now.

Read the full article

Source: Published in Memento Mori magazine

Nicki Price Adams is the Face of Wealth Management in American Funeral Director

Published on Jul. 16 2021

July 2021: Nicki Price Adams is the Face of Wealth Management in American Funeral Director

Read the Full Article Here

SELECTED The Bulletin: “Understanding Your Retirement Needs is Key to Effective Succession Planning”

Published on Jan. 5, 2021

January 2021: Corie Gabriel and Nicki Price Adams Featured in Selected Independent Funeral Home’s The Bulletin Article “Roosevelt Investments: Understanding Your Retirement Needs is Key to Effective Succession Planning”

Corie Gabriel is Director and Nicki Price Adams is Marketing Manager of the Private Client Group at SELECTED Preferred Partner Roosevelt Investments. They recently spoke to the bulletin about the services they offer and their support of SELECTED’s Funeral Home + Cemetery Management Community.

Read the Full Article Here

After a Challenging Year, It’s Time to Prepare for 2021

Published on Dec. 8, 2020

After a Challenging Year, It’s Time to Prepare for 2021

2020 has been a difficult year for many families, particularly those directly affected by the pandemic. The U.S. presidential election also weighed heavily on many, no matter the outcome. At the end of the day, just about every American is ready to turn the page and get positioned for a fresh start to the new year.

For investors, that means now is a good time to start making preparations, and Roosevelt Investments has five suggestions for getting ahead.

Read the Full Article Here

December 2020 Memento Mori: “Stop Procrastinating and Start Focusing on Your Exit Strategy” by Tim Hermann

Published on Dec. 3, 2020

December 2020 Memento Mori: “Stop Procrastinating and Start Focusing on Your Exit Strategy” by Tim Hermann

Read the Full Article Here

November 2020: Nicki Price Adams’ Interview in Funeral Director Daily’s “Get to Know Them” Feature

Published on Nov. 18, 2020

November 2020: Nicki Price Adams’ Interview in Funeral Director Daily’s “Get to Know Them” Feature

Not long after I started writing Funeral Director Daily I received some public relations material from a company out of New York City called Roosevelt Investments. The material came from Nicki Price Adams requesting that I include the material in Funeral Director Daily as she thought it might be relevant to those in the death care profession who read us daily. I looked at the information, took a look at the Roosevelt Investment website and determined that she was right on spot. We have published her requested information at times, which has included free webinars, and I am happy when she continues to give us information that our readership may find valuable.

Read the Full Article Here

Update on Financial Markets – Investing Into Year End and Initial Thoughts on 2021

Published on Oct. 15, 2020

October 15, 2020: Update on Financial Markets – Investing Into Year End and Initial Thoughts on 2021

Jason Benowitz, CFA, Senior Portfolio Manager and Sean Sokolowski, Investment Counselor, sit down to discuss Roosevelt Investments’ thoughts on:

  • Update: financial markets
  • COVID-19: lockdown, reopening, and second wave risk
  • U.S. Election: the run up and the aftermath
  • Fed Policy: from crisis management to recovery support

September 2020 The Bulletin: “If the Tax Code Changes, Will You be Prepared?” by Corie Gabriel

Published on Aug. 19, 2020

September 2020 Corie Gabriel’s Article in The Bulletin: “If the Tax Code Changes, Will You be Prepared?”

Source: The Bulletin, a publication of Selected Independent Funeral Homes

Read the Full Article Here

The 2020 Retirees’ Dilemma: Low Yields, Low Income

Published on Aug. 19, 2020

The 2020 Retirees’ Dilemma: Low Yields, Low Income

We live in a world of rock-bottom interest rates.

During and after the 2008 Global Financial Crisis, central banks around the world lowered interest rates to the zero bound, in an effort to get the economy moving again. In the decade that followed, the global economy grew, but not at a pace that allowed central banks to push interest rates materially higher. Going into 2020, interest rates were still relatively low compared to the needs of many retirees to generate meaningful, low-risk income.

Then Covid-19 happened.

Read the Full Article Here

July 2020 Memento Mori: “Maximizing Income in a Perpetual Care Fund” by Adam Sheer

Published on Jul. 27, 2020

July 2020 Adam Sheer’s Article in Memento Mori: “Maximizing Income in a Perpetual Care Fund”

Read the Full Article Here

July 2020 American Funeral Director: “Asking the Right Questions Amid the COVID-19 Pandemic” by Corie Gabriel

Published on Jul. 8, 2020

July 2020 American Funeral Director: “Asking the Right Questions Amid the COVID-19 Pandemic” by Corie Gabriel

Read the Full Article Here

July 2020: Nicki Price Adams is the Face of Wealth Management in American Funeral Director

Published on Jul. 8 2020

July 2020: Nicki Price Adams is the Face of Wealth Management in American Funeral Director

Read the Full Article Here

Vicki Fillet Appeared in a Panel Discussion on TheStreet.com Webinar: Wealth Planning Strategies For Turbulent Markets

Published on Apr. 22, 2020

April 22, 2020: Vicki Fillet Appeared in a Panel Discussion on TheStreet.com Webinar: Wealth Planning Strategies For Turbulent Markets

Watch Here

Update on the COVID-19 Pandemic & Financial Markets

Published on Apr. 22, 2020

Update on the COVID-19 Pandemic & Financial Markets

On April 22, 2020, Jason Benowitz, CFA, Senior Portfolio Manager, discussed updates on the financial markets, the widespread effects of the COVID-19 pandemic, and answered questions live.

Watch Here

The Director: “How Much Do You Really Need” by Vicki Fillet

Published on Feb. 24, 2020

February 2020 The Director: “How Much Do You Really Need” by Vicki Fillet

Source: The Director, a publication of the National Funeral Directors Association

Read the Full Article Here

The Director: “The SECURE Act – A Retirement Solution?” by Richard Konrad

Published on Dec. 1, 2019

November 2019 Richard Konrad’s Article in The Director: “The SECURE Act – A Retirement Solution?”

Source: The Director, a publication of the National Funeral Directors Association

Read the Full Article Here

The Director: “When It Comes To Succession, We All Have Succession Issues” by Steven Wasserman

Published on Nov. 13, 2019

January 2019 The Director: “When It Comes To Succession, We All Have Succession Issues” by Steven Wasserman

Source: The Director, a publication of the National Funeral Directors Association

Read the Full Article Here

September 2019 The Bulletin: “IRAs and Retirement: What You Need to Know” by Victoria Fillet

Published on Sep. 12, 2019

September 2019 The Bulletin: “IRAs and Retirement: What You Need to Know” by Victoria Fillet

Source: The Bulletin, a publication of Selected Independent Funeral Homes

Read the Full Article Here

July 2019 Memorial Business Journal: “The SECURE Act: A Retirement Solution?” by Richard Konrad

Published on Jul. 29, 2019

July 2019 Memorial Business Journal: “The SECURE Act: A Retirement Solution?” by Richard Konrad

Source: Memorial Business Journal, a publication of the National Funeral Directors Association

Read the Full Article Here

August 20, 2018 Press Release: Steven Wasserman and Nicki Price Adams Join Roosevelt Investments

Published on Jul. 22, 2019

August 20, 2018 Press Release: Steven Wasserman and Nicki Price Adams Join Roosevelt Investments

Read the Press Release Here

Roosevelt Investments Donates $60,000 to the ICCFA Educational Foundation

Published on Jul. 9, 2019

Roosevelt Investments Donates $60,000 to the ICCFA Educational Foundation

Source: July 2019 ICCFA Magazine

Read the Full Article Here

March 22 2019: Adam Sheer’s Interview on Funeral Nation TV

Published on Mar. 22, 2019

March 22 2019: Adam Sheer’s Interview on Funeral Nation TV

Check out Adam’s interview regarding our collaboration with The Foresight Companies, LLC. serving the funeral services and cemetery professions. The interview on Foresight Roosevelt Wealth Management takes place between timestamp 7:30 and 18.

Watch Here

March 19, 2019 Press Release: Roosevelt Investments Announces Dynamic New Collaboration with The Foresight Companies

Published on Mar. 19, 2019

March 19, 2019 Press Release: Roosevelt Investments Announces Dynamic New Collaboration with The Foresight Companies

Read the Press Release Here

October 10, 2018 Press Release: Roosevelt Investments Acquires Value Architects Asset Management and Blueprint Financial Planning

Published on Oct. 10, 2018

October 10, 2018 Press Release: Roosevelt Investments Acquires Value Architects Asset Management and Blueprint Financial Planning

Read the Press Release Here
Roosevelt Investments