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.

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

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.

Current Transaction Model

Presentation

Close

Understand Needs

Develop Relationship

40%

30%

20%

10%

Supports Advisor’s Agenda

Presentation

Close

Understand Needs

Develop Relationships 40%

30%

20%

10%

The FBR Transformation

Build relationships with all family members

Supports Clients’ Objectives

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.

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.

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.

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

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

Client Decides Approach

Transactional 1. Work with Business Owner only

2. Receive commissions on products sold

Fee for service1. 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

Which Approach Best Meets The Needs of Your Client’sTransactional 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

Finding Business Owners

Third Party Sponsorship: Trade Associations Banks Credit Unions

Standard Prospecting Includes:Natural marketsReferralsCenters of influencePersonal observation

This successful and

proprietary model

consists of:

Three phases

Nine steps

Results in benefits!

Overview – FBR System Model

12

3

4

567

8

9Your

Wealth Transfer

Plan

FBR System Model Phases

PHASE IExamine the current plan

Interview process

Determine Objectives

Analyze current plan

12

3

FBR System Model Phases

PHASE IIDevelop a new plan 4

5

6

4. Determine

transfer options

5. Seek advisors

input

6. Develop new plan

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

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

Phase IIDevelop

New Plan

Phase IIIPresent &

Implement Plan

The FBR System Model

12

3

4

5

67

8

9

Phase IExamine

Current Plan

Your Wealth

Transfer Plan

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

Fee For Service Model

The FBR System is a Fee for Service Model. Fee Agreement is Based on:Complexity of BusinessFamily ObjectivesNumber of Family MembersSize of the BusinessNumber of BusinessesScope of Engagement

Production Comparison Per CaseToday: Estimated Current Life Premium

FBR SYSTEM Estimated Revenue

Life premium on a wealth transfer case(Example only)

Consulting Fees(Includes all Three Phases)

AnnualPremium

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.

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

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

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

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

Contact us to learn how you can become an effective Wealth Transfer Specialist.

Moving Forward Together

FBR Systemwww.fbrsystem.com805.595.2089

Karl BareitherFounder, CLU, Wealth Transfer Specialistkarl@fbrsystem.com

Contact Us