4 Business and life Transitions: are You ready? 7 Questions We Will Help You answer 6 How We Help Business owners achieve Their Goals 8 let s assess Your Current Situation Working the Checklist 10 a Team effort 12 leadership Team The Bay Colony Group at Morgan Stanley Smith Barney Bridging the Gap Between Business Ownership and Personal Goals
950 Winter Street Waltham, MA 02451 781-672-5129 / Main 800-344-4495 / Toll-Free 781-672-5199 / fax fa.smithbarney.com/thebaycolonygroup
Helping business owners achieve their personal financial goals. Business owners like you often find there is a gap between successfully running your business and reaching your personal goals. The Bay Colony Group is focused on helping you bridge that gap. With our highly credentialed and successful advisors, strong skill set and deep experience in working with business owners, The Bay Colony Group can help you create value for your business, and empower that value to serve your personal aspirations. The Bay Colony Group has a variety of tools and services to help you implement the strategies that are right for you. Just as importantly as providing the right answers, The Bay Colony Group will ask the right questions, to clarify your objectives, and to show you how to reach them. We invite you to join the exclusive group of business owners who work with The Bay Colony Group to enrich their lives and those of their families, foundations and interests. The bay colony Group 3
Business and Life Transitions: Are You Ready? 7 Questions We Will Help You Answer 1 Do you know your exact retirement goals and what it will take in cash to reach them? For business owners, this is the cornerstone of a well-conceived wealth management plan. 2 Do you know how much your business is worth, today, in cash? This is a crucial piece of information, and one that requires substantial investigation to properly answer. 3 Do you know the best way to enhance the income stream generated by your ownership interest? There are a variety of options that you can pursue; analyzing them alongside your personal objectives is a key to success. 4 Do you know how to sell your business to a third party and pay the least possible taxes? The Bay Colony Group works with you to look at the multiple options which need discovery, analysis and, potentially, years to consider. 5 Do you know how to transfer your business to family members, co-owners or employees, while paying the least possible taxes and enjoying a high level of financial independence? The Bay Colony Group can help you determine the right steps to take when you need to restructure capital for this type of transition, all within the context of your Lifestyle Number. 6 Do you have a continuity plan for your business if the unexpected happens to you? Our experience in working with business owners has shown that they often have blind spots factors or challenges for which they have not planned that can impact not only their businesses, but their families. We can help you. 7 Does your family have financial independence if the unexpected happens to you? At The Bay Colony Group, we integrate your personal wealth management with your business strategy to help you and your family build, protect and keep your lifestyle. 4 Morgan Stanley Smith Barney
How We Help Business Owners Achieve Their Goals The Bay Colony Group has developed a simple yet in-depth process to help clarify your objectives, build the value of your business, plan for and execute business transitions, and put your wealth to work. We work exclusively with business owners who want clarity on the value of their business, their future Lifestyle Number and a roadmap to the eventual transition from their business so our process is specifically attuned to these needs. 1 Building Business Value As a business owner begins the transition process, increasing the value of their business is crucial. No one knows more about running your business than you, but there are potential opportunities for The Bay Colony Group to contribute. We can help you manage and grow your business in a number of ways from cash management strategies to accessing capital to help the business expand and operate more efficiently. We can assist you in understanding the tax advantages of improving retirement benefits for you and the business, an opportunity that can attract and retain employees. The Bay Colony Group, along with a specialized network of business owner service providers, delivers this value with an eye toward the business transition that will help you bridge the gap between successfully running your business and reaching your personal goals. 6 Morgan Stanley Smith Barney
The Four Stages We believe that there are four stages that a business owner goes through on the way to their personal goals: 1 2 OUTSOURCE Building DEFINE Business Determining Value a Lifestyle Number 4 2 Determining a Lifestyle Number How much money will you need to maintain the integrity of your lifestyle after you transition from your business? Money serves two purposes it allows you to buy things and do things. What do you want to buy and what do you want to do? By asking the right questions, we can help you better understand that number. There is often a disparity between your perceived need and your actual need and our process can help create more clarity in determining this lifestyle number. PROTECT Lifestyle Maintenance 3 ENHANCE Exit, Succession and Pre-Liquidity Planning 4 Lifestyle Maintenance Comprehensive wealth management is more than just investing. It is about protecting the integrity of your lifestyle. The Bay Colony Group provides complete discovery services to help define your objectives, then develops a strategy to help you get there. We construct, manage and service your full financial life, working with a variety of experts and partners on everything from your investment portfolio to your philanthropic goals. And because we work exclusively with business owners, we are highly attuned to your unique requirements and expectations. 3 Exit, Succession and Pre-Liquidity Planning This is a crucial stage that often goes underserved with profound consequences. Proper planning for your transition can have a dramatic impact in a number of areas including tax implications, estate planning and what type of transaction works best for you. The Bay Colony Group s guidance through a formal transition plan will provide you with a better understanding of your financial and emotional readiness to exit along with your options and risks. We provide the kind of objective advice and assistance that can help ensure a successful transition.
Let s Assess Your Current Situation Working the Checklist The Bay Colony Group s Checklist helps us make connections and recommendations based on your goals. It is a checklist of key items that helps us address the aspects of your business that are most important to you. Business Needs Review Everything starts by zeroing in on the factors that make a difference in your business from your perspective on ownership, control and liquidity, to the key challenges and opportunities you may face. Understanding these factors can play an important role in addressing your lifestyle and personal goals. Cash Management and Capital Needs Review The lifeblood of any business is cash, whether accessing capital or managing receivables and payables. We can help review the strategies you have in place and, if appropriate, share alternatives to consider. Retirement and Benefits Assessment Having the proper benefits plan is an important recruiting and retention tool. We can help you review the benefits your business offers including retirement, stock incentive plans, nonqualified deferred-compensation plans and employee-retention strategies from the perspective of both employer and employee. Risk Review It is important to understand and protect against unforeseen events that can jeopardize the value or even the continuity of your business. Identifying these risks is the first step in helping to protect against them. Succession or Exit-Plan Assessment Planning ahead is vital as you look toward the next chapter of your business history. Whether selling a business in whole or in part or passing one on, there are a number of different exit strategies that can be considered. Family Wealth Plan Your business is a critical element of your personal wealth plan. We can help ensure that decisions made for one complement the other, so that personal wealth and business wealth work together to increase the value of both. Key Documents Organization You want to be sure you, as well as your spouse and/or beneficiaries, can access all your critical documents (powers of attorneys, shareholder agreements, insurance policies, wills, etc.) when they are needed. 8 Morgan Stanley Smith Barney
Solutions and Strategies Asking the right questions to understand your business and your personal goals allows us to indentify where we can help you. Our experience, tools and resources can help you bridge the gap if we understand what you want us to do for you. Our specialty is you. For your business Every business is different, and absolute clarity on its specific challenges and strengths is vital to helping reach its potential. Only when we have this kind of understanding will we begin to put the enormous resources of our group, outside advisors and one the world s largest financial firms to work for you. For you Talking about a plan is important, but delivering on that plan is critical. Our comprehensive discovery, planning and investment process combines the understanding of you and our analytics with execution to help meet your business goals in concert with those of your personal life plan.
A Team Effort As a business owner you don t work alone, and neither do we. We can coordinate with outside advisors that you trust your accountant and your attorney, for example to explore your company s needs and present you with actionable strategies to achieve your goals. We will also seek guidance and introduce you to specialists throughout Morgan Stanley Smith Barney who have experience working with a variety of problems and just about every opportunity you might encounter. retirement planning Lifestyle Review Comprehensive Retirement Income Planning Health Care Planning Beneficiary Review Pension and Social Security Analysis 10 Morgan Stanley Smith Barney
The Bay Colony Group at Morgan Stanley Smith Barney family needs planning banking & borrowing Comprehensive Financial Planning Tax Planning Strategies asset Allocation education Planning estate planning Securities Backed Borrowing Strategies High Net Worth Borrowing Strategies Commercial Banking & Borrowing Home Financing business owner needs insurance and liability management life Insurance / Long term Care income Protection / Disability Insurance liability Insurance Wills Trusts Charitable Giving Family Dynamics Beneficiary Planning Deposit / Treasury Services loans and Lines of Credit 401(k) Profit Sharing and Defined Benefits Plans SIMPLE IRAs Key Person Insurance Buy-Sell Agreements Succession and Exit Plans GRATs / FLPs ESOPs Recapitalizations non-qualified Retirement Plan Services The bay colony Group 11
Leadership Team David Poulin Senior Vice President Joseph Verri Vice President David Clayman Senior Vice President 12 David has more than 20 years of experience working with private company executives to construct their post-business lives. Prior to joining Morgan Stanley Smith Barney, he was associated with Bear Stearns, Robertson Stephens and Hambrecht & Quist. David is a Certified Investment Management Analyst (CIMA ), and also holds the Certified Private Wealth Advisor (CPWA ) designation from the Investment Management Consultants Association and the Senior Investment Management Consultant designation at Morgan Stanley Smith Barney. David rides in the Pan-Mass Challenge fundraising bike-a-thon to benefit the Dana Farber Cancer Institute and The Jimmy Fund. He lives in Wayland, MA with his wife, Monica, and their children, and is active in various community organizations and youth sports. We help business owners and clients answer three critical questions. Do I have any financial blind spots? What is my number and how do I get there? How do I stay there? David.Poulin@mssb.com 781-672-5129 Morgan Stanley Smith Barney Joe has more than 16 years of experience working with business owners in helping them manage their business and their financial life. Prior to Morgan Stanley Smith Barney he was associated with A.G. Edwards & Sons. Joe is a Chartered Retirement Plans Specialist CRPS, a designation from the College of Financial Planning, and provides guidance in areas of executive compensation and company sponsored retirement plans. He also holds the Financial Planning Specialist designation within the firm and is involved in working with business owners to coordinate and plan for successful exit and succession strategies. Joe is a supporter of numerous national charities. He devotes significant time to his alma mater, Marian High School in Framingham, where he serves on the board of trustees. Joe is an avid downhill skier/ racer and enjoys gardening, woodworking and over all home improvement projects. A wise man once said a good teacher makes himself progressively unnecessary. I enjoy helping clients and prospects understand complex issues, so that they can make informed decisions in service of their own goals. The more they know, the more effective we can be as a team. Joseph.Verri@mssb.com 781-672-5140 David has more than 13 years in the financial services industry, having spent his entire career with UBS and PaineWebber before joining Morgan Stanley Smith Barney in 2009. David is a Chartered Market Technician (CMT ). He holds the Financial Planning Specialist designation at Morgan Stanley Smith Barney, as well as a FINRA Series 3 license for investing in commodities futures contracts. David is an Eagle Scout and is involved with the Troop he grew up in, serving as a committee member of Troop 250 in Waltham, MA. He is also a founding member of The Friends of Waltham Scouting and serves on the Executive Board of the Boston Minuteman Council. David lives in Watertown, MA and is an avid collector of Ford Mustangs, as well as a proud supporter of his beloved New England Patriots. The principles of trustworthiness, loyalty, and the duty to serving others that I have learned from Scouting are more important than ever in our industry. Clients know they can count on us to help them understand their needs and work toward their goals. David.Clayman@mssb.com 781-672-5265
Francesca E. Federico Financial Advisor Francesca joined Morgan Stanley Smith Barney in 2010 and holds her FINRA Series 7 and 66 licenses, as well as her life, accident and health insurance licenses. Francesca graduated from Fairfield University in Fairfield Connecticut with a Bachelor of Science in Finance and a minor in Spanish. She is actively involved in the Fairfield University Alumni Community. Francesca is an avid supporter of our U.S. troops and volunteers with Operation Gratitude to assemble care packages to send abroad. She lives in Braintree, MA and enjoys spending time with her family and friends. Francesca loves the beach and rooting for her Boston Sports Teams. Coming from a family of business owners, i understand the challenges business owners face and we work to provide strategies that will assist them in reaching their overall goal of the business. Francesca.Federico@mssb.com 781-672-5122 Kimberly Van Winkle Registered Associate Kimberly has more than 13 years experience in the financial services industry. Prior to joining Morgan Stanley Smith Barney in 2009, she spent 11 years of service at UBS and PaineWebber and one year with JPMorgan. Kimberly holds FINRA Series 7 and 66 licenses. She graduated from Framingham State College in 1996 with a BA in Communications, concentration in Corporate Communications. Kimberly is a supporter of the American Cancer Society s Relay for Life and organizes, within our office, the food drive for local charities. She lives in Arlington, MA with her partner Scott. Teamwork is something that we take very seriously here. it s important for all of us to know what the client needs and how we are helping them get there that way, we can all support the ultimate goal of each client. Kimberly.Vanwinkle@mssb.com 781-672-5102
Risk Management The ups and downs of the markets is just one kind of risk but so is not protecting my assets and my family. How do I protect what I care about most? Retirement When I retire, it will affect just about everything that matters: my lifestyle, my company, my family. Is there a way to plan for retirement that takes it all into account? Integrated Planning Decisions about both assets and liabilities need to be made in the framework of important life goals. What steps are also the most tax efficient? How can a strategic approach to banking and lending simplify my financial life and maximize the value of what I own? Education Funding Will I be able to pay for a good education for my children and my grandchildren? Investment Management I have so many goals and priorities. How can one investment strategy balance them all? Liquidity I can predict some expenses, but others I know I can t. How can I plan to have the cash I need? Estate Planning Making sure my estate goes to the people and organizations I care about is a priority. How do I transform my assets into a legacy? Charitable Pursuits The charities I support are like extended family. How do I maximize the good I can accomplish? Business Strategies How do I manage my personal wealth with so much tied up in my company? You Benefit From a Profound Understanding of the Full Range of Wealth Management Needs 14 Morgan Stanley Smith Barney
A CULTURE of EXCELLENCE OVER THE YEARS, YOU HAVE MADE MANY FINANCIAL DECISIONS. ONE IN PARTICULAR IS LIKELY TO HAVE A LASTING IMPACT ON YOUR WELL BEING AND THAT OF YOUR FAMILY: THE CHOICE OF A FINANCIAL ADVISOR. Investors who choose Morgan Stanley Smith Barney often tell us that their reasoning is simple. They choose The Bay Colony Group and a firm that mirrors the values propelling their own success: a commitment to perform at the highest level for their clients, with no shortcuts, compromises or excuses. A STRONG, STEADY FORCE IN A CHANGING INDUSTRY Ceo and senior team with deep wealth management experience 130 years of combined experience 900 global locations 18,000 financial advisors 7 million client accounts $1.5 trillion client assets U N P A R A L L E L E D E X P E R I E N C E. Drawing on many years of experience, Morgan Stanley Smith Barney understands the importance of shaping relationships that reflect client needs, preferences and aspirations. Our firm and The Bay Colony Group have an in-depth understanding of virtually all the challenges, goals, preferences, styles and strategies that distinguish wealthy investors. Additionally, as a truly global financial institution, we have an equally acute knowledge of financial opportunities and the potential risks. This combination positions us to develop, structure and execute solutions for your most important financial needs, from accumulating wealth to investing for income, from solidifying retirement security to devising a distribution approach that meets your lifestyle and legacy goals. INVESTMENT INSIGHT WITHOUT LIMITS. As a client, you have access to the strategic and tactical views of some of the world s most seasoned and respected investment professionals. The members of our Global Investment Committee develop strategies that guide the management of advisory accounts and help to inform the decisions of clients across Morgan Stanley Smith Barney. The team is currently supported by the work of 350 analysts at two of the world s largest investment banks, Morgan Stanley and Citi, who cover key geographic and economic sectors, as well as 3,000 individual equity securities. You also benefit from a premier trading and execution platform. Think of our 225 capital markets professionals as experienced, highly responsive and knowledgeable partners. PERFORMANCE THAT MEETS YOUR MEASURE. Among the most important skills of The Bay Colony Group is the ability to listen: to thoroughly understand your financial needs and then align the resources to meet them. The Bay Colony Group can help you evaluate immediate concerns and plan for long-term goals, be a sounding board for your investment ideas, assist you in developing and executing a strategy that is precisely your own and help deliver performance results that meet your needs. The Bay Colony Group is your advocate within our firm, an intelligent editor who selects and aligns the many capabilities of Morgan Stanley Smith Barney for you, delivering the right resources to you in the way that is most appropriate for how you invest and what you want to achieve. ONE OF THE WORLD S STRONGEST INVEST- MENT ORGANIZATIONS STANDS BEHIND YOUR FINANCIAL ADVISOR The Bay Colony Group have access to top flight research from both Morgan Stanley and Citi. Combined, they analyze and track the progress of more than 3,000 companies all over the world. Please read important disclosures on the back cover of this brochure The bay colony Group 15
How do I start the conversation? start a conversation with us. The Bay Colony Group at Morgan Stanley Smith Barney focuses on helping business owners transition their businesses in service of their personal goals. We work with a limited number of clients, providing extremely personalized and high-touch service. Our experience and knowledge helps you work through what may be the most significant chapter in your financial lives, helping you get where you want to go. If you re a business owner, you owe it to yourself to consult with a group that focuses on situations like yours. Invite us to discuss The Bay Colony Group s Process and how it can enhance the opportunities available to promote growth in your business and your life. Tax laws are complex and subject to change. This information is based on current federal tax laws in effect at the time this was written. Morgan Stanley Smith Barney ( MSSB ), Morgan Stanley & Co. Incorporated ( Morgan Stanley ) and MSSB s Financial Advisors do not provide tax or legal advice. This material was not intended nor written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their personal tax or legal advisors to understand the tax and related consequences of any actions or investments described herein. The services detailed on the MSSB Business Owner Standard checklist are not financial planning (unless they are specifically called financial planning) and do not create an investment advisory or a fiduciary relationship (including under ERISA) between you and MSSB. MSSB and Morgan Stanley are registered broker-dealers, not banks. Where appropriate, MSSB and/or Morgan Stanley have entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services. Banking and credit products and services are provided by Morgan Stanley Bank, N.A. or Citibank, N.A., and/or one of their banking or lending affiliates. All loans are subject to application and approval. These products may not be available in all jurisdictions/territories and are limited to U.S. citizens and permanent resident aliens only. If you have questions, please contact your Financial Advisor. For clients whose account is carried by MSSB, insurance products are offered in conjunction with Morgan Stanley Insurance Services, Inc. For clients whose account is carried by Citigroup Global Markets Inc., MSSB offers insurance products in conjunction with SBHU Life Agency, Inc. 2011 Morgan Stanley Smith Barney LLC. Member SIPC. 6667261 07/11