Business Planning Fact Finder

Exploring an Informal Business Valuation or Buy-Sell Review

There are many instances when the value of business assets is needed, such as for funding buy-sell agreements, retirement planning and estate planning purposes. Whether you need to create a market for the sale of your business, understand how to distribute money to fund your retirement or provide your business tax protection in the event of your death, creating a solid financial plan for your business is important. Note: When ranking items below, use 1 to indicate most important and 5 to indicate least important. General Do you know what you could sell your business for today? ___________ Estimated Value Have you had your business valued within the last two years? Buy Sell Have you identified who will buy your business and for how much? Do you have a buy-sell agreement? Is that buy-sell agreement based on a stated business value and has that value been reviewed in the last year? ________ N/A Do you want to set up a buy-sell arrangement for your business? Key Person Do you have key people that contribute to the profitability of your business? Would your business be financially harmed if you lost a key person to the competition, death or disability? Retirement Does your business represent a substantial part of your planned retirement income? As part of your retirement plan, are you planning on deriving more than the book value out of your business? Estate Are you planning on transferring your business to your children or your key employees at a discounted amount? Have you made arrangements to sell your interest in your business at death and have those arrangements been reviewed in the last two years? Are you aware that it is possible to have your business taxed at a higher value than what it is sold for at death? Yes No Yes No Yes No Yes No Ranking Yes Yes No Ranking No Yes Yes Yes No No Ranking No Yes Yes Yes Yes Ranking No No Ranking No No

Please complete the following information:

1. Business name: _________________________________________ 1a. Owner(s) name: _______________________________________ 1b. What is the nature of your business? _____________________ 1c. Issue state: ____________________________________________ 2. Type of business entity: C corporation Sole proprietorship 3. Total number of employees: 1-9 10-50 51-200 4. Number of business owners: 1 2 3 4+ 11. 201-500 501+ S corporation Partnership 6. Annual growth rate: ________% 7. Business tax rate (Enter owners tax rate if business is taxed as a flow-through organization.): ________% 8. Do you have a buy-sell agreement? If yes, provide a copy of the agreement. 9. To whom do you intend to sell? Family Third party Key employee Co-owner Yes No

10. Names, phone numbers and addresses of the following professional advisers: Attorney: _____________________________________________ Accountant: __________________________________________ Banker: _______________________________________________ Three full years of income statements and balance sheets or Three full years of company tax returns

5. How many years has the business been operating? ____

Owner/Key Employee Census

NAME/TITLE DATE OF BIRTH TOBACCO STATUS SEX RISK CLASS

If more than three names, please attach a spreadsheet or send electronically

Provide information for Advanced Solutions use: Date _____________ Office __________________________________________________ Advisor Name ________________________________________________________________ CFP CLU ChFC CEBS LUTCF Advisor Email _________________________________________________________________ Phone ____________________________________
Email information to newrfps@exchange.principal.com or fax to Case Design Team, 866-946-3209. If you have questions, call 800-654-4278, ext. 75328. Special delivery instructions ________________________________________________________________________________________________________________

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Principal National Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products from the Principal Financial Group (The Principal) are issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, 800/247-1737, member SIPC and/or independent broker/ dealers. Securities sold by a Princor Registered Representative are offered through Princor. Principal National, Principal Life and Princor are members of the Principal Financial Group, Des Moines, IA 50392.

Not FDIC or NCUA insured

May lose value Not a deposit No bank or credit union guarantee Not insured by any Federal government agency
BB10446-03 | 02/2012 | t11121402p8