Elizabeth Shea (00:43)
Hello everybody and welcome again to Branching Out. I am so excited to have Chris Kaiser in our virtual studio today. How are you doing today, Chris?
Chris Kaiser (00:52)
I am good, Elizabeth. I appreciate you having me on.
Elizabeth Shea (00:55)
I'm so excited. You know, you are the first person that we're having on the program that is on the board with me at the Exit Planning Institute. You're this year's incoming president. So, I'm very excited to have you here. We'll talk maybe a little bit more about the Exit Planning Institute down the road. But let's just start with some of the basics. If you can, give us a little bit of your background. How did you get into the business at Edward Jones? You're a financial advisor there and have been for many years. Tell us a little about your background and how you got to your current role.
Chris Kaiser (01:22)
I love that question. And my thought is, you know, it's gotta start with my family. I'm very blessed to be married for just over fourteen years now and I have three awesome kids. Time goes by!
Elizabeth Shea (01:31)
Wow, congratulations.
Chris Kaiser (01:35)
Thank you. Really, you know, everything I do is motivated by them. As far as how I got into the industry, it really wasn't a straight path. It wasn't a straight career. I sold real estate for a few years, something my dad had done for decades. And I also worked for my grandfather's CPA firm. Now, this was back in the Midwest, back in Iowa.
At the CPA firm, I did bookkeeping for small businesses. And I think those two jobs at the time really gave me kind of a front row seat to the financial side of people's lives and some of the challenges that business owners face. What I enjoyed most was building those relationships, Elizabeth, and helping people solve problems, helping families solve problems. But I felt like there was something missing.
I was helping with the transactions and the numbers, but I really wanted to have a deeper impact on people's lives and be involved in those decisions that affect their long-term goals, their families and really their futures. And that's what brought me to Northern Virginia. I joined a boutique wealth management firm in Reston, spent a few years there kind of learning the business and how the ins and the outs worked. But over time I found myself really looking for a firm whose culture and values more closely matched what I want, you know, how I wanted to serve people. That's what got me to Edward Jones. It's been about five years.
Elizabeth Shea (03:07)
Fantastic.
Chris Kaiser (03:09)
Yeah. But the ability to focus on those relationships with long-term thinking and truly partnering with clients the way I'd like to is great. You know, I felt like this was a place where I could build a career centered on helping people accomplish what matters most to them. And that's what I've been fortunate enough to do since.
Elizabeth Shea (03:29)
That's amazing. What a great story. So, you moved from the Midwest to Virginia, to Northern Virginia, and had some experience with other business entrepreneurial activities with your family and your grandfather. you know, a financial advisor to me means a lot of different things and it probably does to a lot of different people.
I've noticed that you have a focus on business owners specifically. And that's not that's not very typical. Typically, you know, when I hear of financial advisors, they might be waiting until a business owner exits and has a lot of money to manage. So why do you think that you're in a unique position to help business owners before they even exit a business, for example?
Chris Kaiser (04:04)
Yeah, I like that and what I love working with business owners is that their financial life is rarely separated from their personal life.
For most people — me before I came here — their largest asset might be their home or their retirement account. But for a business owner, it's often the company they've spent years or often decades building. The business owners really carry a unique set of responsibilities, Elizabeth, and I think you've noticed this too being a business owner yourself. They're not only responsible for their own family, they're responsible for the employees and their families as well. Every major decision that they can that they make can affect dozens or even hundreds of people. I also find that many business owners spend so much time working in the business that they don't always have the opportunity to step back and work on the business.
Yeah, that's where I enjoy adding value and I think you do too over at Tree Fork. But whether it's retirement plans for employees, succession planning, preparing for a future sale, uh tax efficient wealth strategies, or simply just helping them connect with other professionals, I really enjoy being part of those conversations.
Then I I think my background working with small businesses at my grandfather's CPA firm gave me a special appreciation for what owners go through. I saw firsthand the long hours, the risk they take, and the sacrifices that they make. They're really some of the most driven and resilient people that, most of us will ever meet. The part that energizes me, if I can say that, Elizabeth, is helping owners realize that their business isn't just what they do for a living. It's likely the largest financial asset they'll ever own. When we can help them increase the value of that business, prepare for a future transition, and align the business with their personal goals, that's really when meaningful planning can happen.
Elizabeth Shea (06:10)
No, that makes sense. It's very logical. And so, you touched on a couple of things that I hadn't quite even put together, which is that there are many aspects that a business owner has to consider like a retirement plan for their employees, not just for themselves. So you're looking really at the business owner's entirety of financial responsibility and not just the business owner themselves. And so I think that's a very astute point to make. And maybe that's because of your relationship with Edward Jones and that's what you bring to the table. I think that's fascinating because that's very important.
So, as you know, the audience for this podcast are business owners that are potentially looking to make some form of a transition, whether it's an exit to a family member, to an employee, to a third party. There are many different paths for a business owner to take. So, if we specifically think about a business owner that might be looking to sell his or her own business, tell us about your role in that process and when's the best time for you to get involved What can a business owner expect from you as they are starting to contemplate the future of that company?
Chris Kaiser (07:10)
Yeah, that's a great question. a lot of people just generally think, I need a wealth advisor once I've sold. Not really the case. When a business owner is thinking about selling their business, there's a lot that we can do years ahead of time during the process of that transaction, which could take a year. And then of course after the transaction as well. But before the sale, a lot of owners are focused on maximizing the value within their business. They spent decades building a great company, but often their personal wealth, retirement plans, and succession goals haven't been fully aligned with that eventual exit that will happen, planned or unplanned.
That's where I like to think I help them think strategically about what they want life to look at after the sale and whether the business is really positioned to help get them there. In many cases, the best planning does start years before a transaction ever takes place. The earlier we can begin, the more opportunity we have to improve the value of the business, what you do, prepare the owner financially, address tax considerations, and build that right team of advisors around them. A successful exit rarely does happen by accident. It's usually the result of thoughtful planning and intentional preparation.
So, during that process, my job is to help ensure that every decision from every professional is being evaluated through the lens of that owner's long-term goals. It's really easy for all of us to get caught up in valuation terms and timelines, but what I want to make sure is that we're really never losing sight of what the owner and their families are actually trying to accomplish.
Elizabeth Shea (09:02)
Yeah, It's very interesting. So, keep going on that thought. I think that there's probably a lot to be said for just the fact that a business owner may not even be thinking about like how does a person decide what it is that they need for themselves.
Chris Kaiser (09:14)
Right. You know, and you have first-hand experience having exited your own company, going through that process yourself and now you're helping
Elizabeth Shea (09:18)
Right, right. That's why I'm asking.
Chris Kaiser (09:22)
business owners do it today, which is awesome. but there's a lot of moving pieces during that process.
And one of my goals is to make sure that everyone is moving in the same direction and focused on those objectives of the owner. After the transaction closes, my role shifts to helping the owner execute the plan that we've been building towards. And then now we're helping them manage that liquidity, execute our long-term investment strategy, which has been in place.
Generate the income from that and fulfill their legacy and make the most of the opportunities that come in their next chapter. So ultimately, I tell business owners that selling a business is not just a transaction, it's a life transition. So my role is to help them make sure they are prepared financially and personally for what comes next.
Elizabeth Shea (10:12)
Yeah, you know, we talk about that in the Exit Planning Institute, the three legs of the stool, the business, the financial, and the personal side of business ownership and how important each one of those legs are to a successful outcome, to a uh successful transition.
what we tend to see is that a business owner might say well I need ten million dollars or I need five million dollars and like where does that number come from? It's kind of a pie in the sky let's just you know shoot from the hip and how do you manage that? Do you do you have a you have a process that you go through where you say well let's really like drill down into what's what's real, what's not real and what's part of the personal, financial and business legs of the stool.
Chris Kaiser (10:51)
So, if I were speaking to a business owner on that, or a founder considering an exit, there's probably three pieces of advice I'd share.
The first would be start planning earlier than you think you need to. And I feel like we can see a theme in that. needing to plan earlier, right?
So many owners wait until they receive an offer to even begin thinking about what comes next.
but what we found is the most successful exits are usually years in the making. The earlier you plan, the more opportunities you have to increase the value of that business, optimize taxes, and put the right team around you.
the second one is, and it's hard, but don't focus solely on the sale price. Of course, valuation matters, but what ultimately matters is how much of that value ends up helping you achieve your goals. I've seen owners become so focused on getting the highest number possible, but they overlook taxes, deal structure, timing, or what life will actually look like after the sale. You know, what are you going to do?
The third one is understand what actually creates value in your business. Many owners spend years working hard, but not necessarily increasing the enterprise value. The earlier you understand what buyers are actually looking for, the more opportunities you have to strengthen the business before that transaction occurs. So, at the end of the day, a successful exit isn't measured by the purchase price alone. It's measured by whether the transaction helps you accomplish what's truly important to you and your family.
Elizabeth Shea (12:31)
Yeah, I cannot emphasize that enough. It's interesting. So many of our guests on this program have talked about that, that they chased the first deal that came in, that it was a nice big price tag, and then the reality is that the terms were complicated or not necessarily in their favor, or there was an earnout structure, or there was a potential clawback if something didn't go the way that it was planned. There were so many other things to consider. And you do talk about tax strategies, I don't want to drill down into that t explicitly because that may not be your particular expertise, but I think you have noted before it's important to consider what are the tax implications before and after and how can you plan for that in the future. So all those things matter. So that price tag that you get might not be what you actually get at the end of the day for your family moving forward.
Chris Kaiser (13:16)
Right, and that's the value of having that whole team around you that has experience in this specific thing um to help prepare for that.
Elizabeth Shea (13:29)
Yes, yes. So, a piece of pushback that we've also heard . . . and we've heard people talk about it on this podcast in retrospect saying, “wow, I should've actually had these advisors around the table because I didn't realize I could have mitigated my taxes.” Who are some of the advisors that you might recommend? Because advisors cost money and that's something that a business owner is going to be thinking about. But who do you think is really critical to be around the table
Chris Kaiser (13:52)
Yeah, so you know, some of that depends upon the goals and where we're at in the process. A CPA is essential. Depending upon size, you know, of the business, an estate attorney, value
growth advisor, so that you're building a business that is creating value that a buyer wants, and then your wealth manager, your financial planner. That's kind of the core.
Elizabeth Shea (14:16)
Yeah, that makes sense. That's very logical, And even M&A advisors, we've had a few people talk about that, yeah, I wasn't really sure if I should pay for an investment banker, like we're going to pay a fee. But but it's been kind of proven and proven again that that there will be more a greater return when you have that kind of counsel. You wouldn't go buy a house without a realtor typically, so why would you sell a business without a realtor?
Chris Kaiser (14:39)
Right. when you're, you know, a handful of years out at minimum, that's a great time to go to an investment banker. Get their feedback on what buyers are looking for right now so that you can, you know, plan those next five years or your next ten years kind of around that.
Elizabeth Shea (14:56)
Right. Totally agree. So if you look at maybe gotchas or maybe gotchas isn't quite the right word, but what are what are things that you think people should really be on the lookout for before looking to do a deal or as they start to enter the process of looking for a deal? What do you want to warn people against?
Chris Kaiser (15:16)
Yeah, so I'm going to think about that question a little bit differently, I think. You know, gotchas, you know, are you know gives a certain meaning.
Elizabeth Shea (15:19)
Okay. Gotchas are bad.
Chris Kaiser (15:25)
Rather than focusing on just gotchas, I want to focus on areas where preparation can have an outsized impact on the outcome.
Elizabeth Shea (15:31)
Okay, okay.
Chris Kaiser (15:33)
So, one of the biggest observations I've made is that most of the successful exits tend to have the right team in place years before that transaction occurs. We just alluded to that, right? Most owners will only sell their business once, have one opportunity to do it, while the advisors around them may have participated in dozens or several a year.
Elizabeth Shea (15:56)
Very, very true. Yep.
Chris Kaiser (15:57)
Having that trusted CPA, attorney, wealth advisor, M&A, value growth advisor involved years early really help you identify those opportunities long before you're sitting across that table of a buyer. It gives you time to improve the value, think through those tax implications, and align the business with the personal goals.
And then put you in the strongest position possible when the right opportunity becomes along. And in my experience, it's rarely the issues we know about that create the challenges. It's the conversations that never happened because planning started too late. So that's, Elizabeth, that's really why I encourage business owners to think about exit planning as a process, not a single event.
The earlier you build your team and begin planning, the more options you typically have and the better prepared you'll be when it's time to make that decision.
Elizabeth Shea (16:55)
Yeah, very true. I would definitely applaud that sentiment. and you know, sometimes folks don't have the opportunity, don't have the choice. Maybe they need to make a decision, or they need to exit for a life event or something along those lines. So, you never can predict when those things happen. So, it's probably good to be thinking always and always. Always and all ways. How to how to make sure you're thinking about it.
Chris Kaiser (17:13)
You're exactly right.
Elizabeth Shea (17:17)
I'd like to say that I made that term up, but I've heard that from somebody else at one point. So, what about some examples? Can you can you share some examples either within your own portfolio or a story, a success story, or maybe a lesson learned from a client that you've had that's exited their company, his or her company.
Chris Kaiser (17:35)
Yeah, so one pattern I've seen, I'm going to kind of go generic here just to not specifically talk about individuals, but one pattern I’ve seen, it's two separate owners starting in different places. One began planning years in advance of an anticipated sale, while the other waited until they were, as I like to say, ready to wash their hands of the business. You know, they're done.
The first owner who started preparing years in advance had time to evaluate their options, truly understand the value of their business, coordinate with advisors, and really clarify those personal goals. When an offer eventually came, they could evaluate it from more of a position of strength because they knew what they needed.
The second owner found himself making major tax financials and personal decisions at the same time that they were negotiating the deal itself. That's hard. That's overwhelming.
You're trying to balance family and still maintain that business because a buyer's going to look at how that business is still performing down to a paperwork signed.
But to be able to balance all that, I encourage you, don't put yourself in that position. Plan ahead. you know, and the lesson is really just you're planning to create options is what you're doing. the earlier you start preparing, the more flexibility you generally have when that opportunity knocks.
Elizabeth Shea (19:03)
Yeah, I think that makes a lot of sense. I have seen it happen where, you know, there's a fire sale, let's say, and a person is maybe something in their life personally is really affecting their decision to sell. And so, there's just not the time to put a real solid thought into some of the decisions that might be made. it's hard when you're not prepared. So, what about after the deal is done? You know a business owner comes in; they're clinking the champagne. We've talked about this with a few people on the podcast. And I will say that a lot of the consistent feedback is well, you know, I went through an identity crisis. It was really hard to say goodbye to my company. There are some those are some of the personal experiences that some of the guests on this show have discussed. What have you seen from your perspective? What kind of scenarios have you seen where maybe they didn't go as planned? How can you help counsel or coach business owners on what to expect?
Chris Kaiser (19:53)
Right. That's a great question. We think walking away with millions of dollars possibly that, “hey, I'm good, you know, I'll golf or I'll go to the beach,” but what are you going to do for the other twenty hours during the day, right? Many owners think that way, you know, that the closing table represents that finish line.
But the reality is it's often the starting line for a different set of challenges, Elizabeth. Financially, there's often a significant adjustment from managing a business to managing liquidity. Emotionally, the adjustment is usually greater. So, I've seen situations where owners become restless, just six months after, because they underestimated how much purpose they really had from running that company and being around their employees.
Elizabeth Shea (20:42)
Yes, yes, very, very true.
Chris Kaiser (20:44)
Yeah, you know, and I've also seen owners struggle with the family dynamics, the charitable planning decisions or suddenly having more opportunities than they knew how to evaluate.
So again, I'm going to go back to my advice is to begin planning long before closing day. Think about your purpose, your relationships, your community involvement, mentoring opportunities, or future ventures. Uh the owners who tend to have the smoothest transition are the ones running towards something, not simply running away from something.
Elizabeth Shea (21:19)
Mm, interesting. That's that was somewhat of a theme that we just heard from
From another podcaster, Joe Strazzeri, whom you know through EPI. He talked about that concept. So very fascinating. So, let's just talk about EPI real quick. I got to give a plug because it is a new chapter in the D C area. the Exit Planning Institute has been around for many years, probably over a decade, I'm not really quite sure. But why don't you as the president of the DC chapter, can you share a bit more about the certification for the CEPA? you know, we're both certified exit planning advisors and
And what does that mean and how does that benefit business owners? And what's what's your perspective on how it's helped you to work with your clients?
Chris Kaiser (22:02)
Yeah, no, always happy to answer questions about EPI.
Elizabeth Shea (22:05)
Yeah, just look at you smiling.
Chris Kaiser (22:07)
designation really changed how I thought about serving business owners. So it gave me a framework for something that I already believed and that was the most important questions business owner faces is rarely financial. but before I got the designation, I viewed exit planning through the lens of a transaction.
today it's really I view it as a process. business owners aren't just thinking about the valuation or the sale terms. They're thinking about their family, their employees, legacy, and what happens next after they step away from the business. Both from a family side and then what becomes of that business.
the SEPA, certified exit planning advisor, reinforced the idea that the best exits aren't just financially successful. They're personal, professionally and emotionally successful as well. And and it challenged me to look beyond the numbers and help owners think about what they're really trying to accomplish.
It's also given me a greater appreciation for the importance of collaborative planning. Rarely does a great outcome happen because of one advisor. It happens when attorneys, CPAs, valuation experts, value growth advisors, and financial advisors come together for a common objective.
so as president of the DC chapter, I've had a front row seat of the power of that collaboration. When business owners do have that right team around them and start planning early, they tend to make better decisions, create more value and have more confidence in that transition process.
So at the end of the day, SEPA just really enforced my belief that a successful exit isn't defined by the transaction itself. It's defined by whether the owner achieves the personal, financial, and legacy goals that made the journey worthwhile in the process.
Elizabeth Shea (24:02)
Yeah, I think that's very important. I was pleasantly surprised. I just learned of EPI a lot just last year. So and I very swiftly earned my CEPA certification because I really do believe in the methodology of treating the entire individual, the entire business owner, the entire entrepreneur. it's so important. And and especially if someone's going through an exit. So, I appreciate your perspective on that. And I appreciate your leadership. I know the rest of the board in the chapter here appreciates your leadership from that standpoint.
So, we're about at time. Chris, you've been just absolutely amazing, but I have to imagine you've got something to leave us with, like any final words of wisdom. Bring it on.
Chris Kaiser (24:41)
I still remember sitting in my grandfather's CPA practice, you know, watching the hours that he put in, the the stress he took on for trying to run this small CPA firm, and and then the joy he had being around his employees and how much he cared for them. So much so I saw the long hours, the sacrifices and the responsibility that, he carried.
looking back at it now, you know, that that's probably my first exposure to the impact a business can have on a family and a community.
Elizabeth Shea (25:13)
Yes. Well that's that's very sweet. So right back to your Iowa Midwestern roots, right?
Fantastic, Chris. So, thank you very much for being on our program. How can people reach you? How if they wanted to reach out to you and Edward Jones?
Chris Kaiser (25:28)
Yeah, the easiest way is probably just looking me up on LinkedIn. I'm on there almost every day.
Elizabeth Shea (25:35)
Terrific. And it's Chris C-H-R-I-S-K-A-I-S-E-R. Just to spell it for you, if in case you're listening to this podcast. Excellent. Okay,
Chris Kaiser (25:40)
Yeah. Thank you, Elizabeth. Appreciate it.
Elizabeth Shea (25:43)
Well, thank you so much. Appreciate your involvement on branching out.