Excelsior Family OfficeSESSION FOURWORKBOOK

Decisions and Notes for Modules 1 – 6

BSMARTer Business Simulation Management and Relationship Training

The Excelsior Story

MODULE ONE

The Excelsior Story

2

WHYWe aim to help wealthy current and former entrepreneurs preserve and protect more than just their capital – their way of life.

WHOJim

45 years old

SITUATION: An entrepreneur who has built his company into a significant organization is ready to think more seriously about its success as a multi-generation, family run business and its role in his family’s legacy.

NEEDS: Expertise at the intersection of family, business and legacy. He is looking for guidance in framing the most important issues and designing a process for decision-making. He wants to know what makes a multi-generational business thrive and how to put those pieces into place, from setting goals and designing effective governance structures to developing future business leaders and owners capable of stewarding the family’s wealth and legacy. He also needs comprehensive planning and financial management in coordination of these initiatives and nuances.

WHATIn-house expertise in combination with a network of the world’s most experienced and trustworthy providers that have focused experience and expertise in assisting families achieve these goals.

HOWUnique experience in coordinating various advisors and advocating on behalf of families to ensure they have considered all relevant perspectives to achieve their vision of success.

THEEXCELSIOR

STORY

We understand families of significant wealth created by founding a business. Their interests go beyond financial management and planning. They are self-made and want to preserve and instill the values that were the foundation to their success while simultaneously enjoying the unique life they have created. Excelsior assists entrepreneurs preserve and protect more than just their capital – their way of life.

The Excelsior Story

2

WHYWe aim to help wealthy current and former entrepreneurs preserve and protect more than just their capital – their way of life.

WHOAnn

60 years old

SITUATION: An entrepreneur who has built her company and is looking to sell or has recently sold the business. She is concerned about how to educate and develop her children’s character in light of significant wealth, pursuing philanthropic and personal interests and ensuring her current family and future generations are financially secure.

NEEDS: Expertise in family dynamics, next generation education, financial planning and management in coordination with multi-generational goals and access to art advisors.

WHAT Extensive experience in meeting the unique needs families of significant wealth encounter. This also includes planning for executing the sale of the business.

HOW Core expertise working with families that require coordination of financial and non-financial endeavors, including planning and executing business transitions and liquidity events.

THEEXCELSIOR

STORY

We understand families of significant wealth created by founding a business. Their interests go beyond financial management and planning. They are self-made and want to preserve and instill the values that that were the foundation to their success while simultaneously enjoying the unique life they have created. Excelsior assists entrepreneurs preserve and protect more than just their capital – their way of life.

The Excelsior Story

2

WHYWe aim to help wealthy current and former entrepreneurs preserve and protect more than just their capital – their way of life.

WHOJohn

55 years old

SITUATION: An estate planning attorney specializing in complex entity structures and family-owned businesses. He is one of the most sought after attorneys for this unique client base.

NEEDS: A trusted source he can refer clients to for coordination of all nuances related to families of significant wealth created through founding businesses.

WHAT Proven track record of success as well as unique network of top tier advisors.

HOW Ability to illustrate a broad range of expertise as well as the presence of a strong brand.

THEEXCELSIOR

STORY

We understand families of significant wealth created by founding a business. Their interests go beyond financial management and planning. They are self-made and want to preserve and instill the values that that were the foundation to their success while simultaneously enjoying the unique life they have created. Excelsior assists entrepreneurs preserve and protect more than just their capital – their way of life.

Driving a High Growth Firm

MODULE TWO

Excelsior’s Specialty

4

What is your target market?$1 billion in assets from privately held family businesses.

Clients who have broker fatigue want transparency in pricing but not pay more just because their assets increased in size. Not only want to partner with a firm such as ours to leverage our deep knowledge in Privately Held Businesses and pay for only those services we agreed upon for a flat fee.

What do you specialize in?Privately held family businessesSingle Family Office services for multiple families

How will you use specialization to improve business development?

Our target market is a niche which enables us to be clear experts in our focus. This distinguishes us form those RIAs that manage money or provide planning for a broad base of clients.

We will develop a list of FAQs and responses starting with what we do and why clients do business with us. There will be a clear, concise and consistent message that every associate will be able to articulate that clearly speaks to who we are, what we do, how we are different, and why clients choose to do business with us. This will also enable our clients and COIs to be able to clearly articulate our value prop.

Excelsior’s Specialty

4

How will you use specialization to improve business development? (continued)

Our clients will be important advocates for us, act as a reference or provide referrals. We plan to enable clients to be a part of the firm, potentially board members, so they are able to stay closely tied to our business, truly understand our business and be able to speak on behalf of the business. Our clients will be in a position to truly influence the direction of our business as will future clients.

Our specialization will be attractive for COIs to provide introductions to us or seek our advice on topics they may not be experts on.

Our partners bring unique expertise in the marketplace and will play an integral role in working with prospective clients to determine if there is a mutually beneficial fit

Growing the FirmNO DELIVERABLE EXPECTED

MODULE THREE

Managing New Business Development

MODULE FOUR

Business Development?

8

Who will develop new business for the firm?

Developing business in the Family Office space is very different than it is for mass market registered investment advisors. Sources of new leads primarily come through referrals from existing clients, centers of influence and executives of the firm. In order for prospective clients to truly understand the Excelsior value proposition, the partners within the firm will actively participate in the business development process.

In order to assist the partners and follow through on leads, Excelsior will hire a new business development (NBD) lead. This person will be skilled at profiling prospects and determining good fits for the firm. He/She will also be skilled at assembling the right team of Excelsior professionals, including one of the Partners, to work with the prospect to help them make the right decision(s) for their situation. This person will also have responsibility for sales processes, policies and documentation.

What will you do to train and support the business developers?

Although the Partners and the NBD are most deeply involved in new business development, the entire firm must embrace the concept and be trained. It is important that all employees of Excelsior tell the same story and do it in a consistent manner.

Business Development?

8

To facilitate this, we will compile a list of FAQs and develop a consistent set of responses to prospect questions about our external positioning, value proposition, what we do for clients, and why clients do business with us.

Once this list is compiled, we will conduct mock role plays until our message is consistent.

What will be your sales process?

High Level Introduction to Excelsior Prospect has phone conversation or short meeting with the

NBD professional and possibly a Portfolio Manager or Partner. A longer phone conversation or meeting is then scheduled for

the prospect to provide as much background information about their situation as possible, to provide the groundwork for the next in-depth meeting.

Detailed Level Introduction to Excelsior The NBD assembles a Relationship Deal Team that is

customized to the prospect’s needs, to include a Partner, a Relationship Manager, and a Portfolio Manager.

An in-person meeting is then scheduled. Depending on the size and complexity of the prospect, this meeting will include the entire Relationship Deal Team.

The Prospect has a choice or we may suggest that they meet with additional members of the Excelsior team – Investment Research, Estate Planning Professional, etc.

Business Development?

8

Additional Due Diligence If needed, another in-depth meeting with the prospect will be

scheduled with the Relationship Deal Team and any additional necessary team members.

If the prospect decides to move forward with Excelsior, we move to the proposal (Advisory Agreement) phase.

Advisory Agreement Clarify the expected scope of services and fee structure with

the prospect. Prepare Advisory Agreement for signature by the prospect.

Onboarding Establish on-boarding timeline with the assistance of the

Portfolio Manager and review with the prospect. We believe one of the most important parts of working with clients is the transition. We recognize that the first opportunity we have to demonstrate our service and attention to detail is during the implementation process and as a result, we bring great care and attention to this first interaction. The Relationship Team will be an integral part of this transition so they learn more about the client’s needs as early on as possible. The team will go to a new client’s office to conduct a complete due diligence session to make sure we understand all the account information and service requirements . Then we will pre-fill the application to facilitate the process.

As early as possible in the relationship, the client portfolio manager will initiate the investment policy statement development process that will guide ALL investment decisions that Excelsior makes.

Referrals

MODULE FIVE

Referrals

10

How will you facilitate client referrals?Referrals are critical to the success of our business. We will not take the traditional approach of asking, “Who do you know that could benefits from our services?” Instead we will do the following: We will ask for introductions to people who we know the

client is connected to. By leveraging LinkedIn and other social media sites, we can research and target potential clients. We will also research client connections to charities, boards and social clubs.

We will host small intimate dinners / roundtables on various topics and ask our clients to bring someone who could be a fit for Excelsior.

What initiatives will you undertake to improve referral frequency and quality?

We will establish a yearly referral goal for Excelsior and track progress every month. This will be a standing agenda item for all partner meetings.

All partners and senior executives will have a reminder notification on their desk / computer.

Responses to the Recession Challenge

MODULE SIX

Recession Challenges

10

How will you respond to the recession challenges?TO BE COMPLETED DURING OUR MARCH PHONE CALL

Other Initiatives

12

Describe any other initiatives your firm will undertake.

Notes

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