By now, most know that Principal’s Informal Business Valuation (IBV) platform is available to all of our Members and Brokers. What may not be apparent is how to use it to win cases and grow your business, or that 1 in 3 valuations leads directly to a sale. Whether front end resources like training and fact finders or largely misunderstood elements like Principal’s administrative capabilities, these tools need to be fully understood in order to be deployed effectively. Let’s face it, unless you have taken the time to research and understand this platform, you don’t know Business Valuations.


The Sale

The ugly truth for most business is that their Buy/Sell agreement is likely sitting in a bottom, right hand desk drawer gathering nothing but dust. Not only do the terms of the agreement need to be updated to reflect the current reality of the business, the valuation needs review as well. Of course, spending a bunch of money on a formal valuation is pretty far down the owner’s to-do list. The Informal Business Valuation from Principal Financial is a great way to get the process started by taking the cost objection of the table completely. After the Informal Business Valuation, multiple sales opportunities can be uncovered in these areas of need:

  • Business Protection
  • Estate Planning
  • Exit Planning
  • Income Protection
  • Non-qualified Supplemental Retirement

Principal’s BOES platform offers comprehensive solutions for the business market, many of which begin with one simple step: a Business Valuation.

The Process

This approach offers complimentary, business planning value-add services to help you get in front of business owners. The Informal Business Valuation and Business Planning report provides important information to business owners regarding the value of their business and the impact that value can have on many aspects of their business and their personal financial futures.

  • Serves as great door-opener that can lead to life and disability insurance sales.
  • Informal Business Valuation reports include five commonly used valuation methodologies.
  • Reports are prepared by CPAs, attorneys and senior consultants from our Advanced Solutions Team
  • Help business owners start the process of preparing for their financial future such as retirement income planning, business continuation/succession planning, income protection, business protection and estate planning.

The Client

Informal Business Valuations are available for a variety of business types. Some good prospects are:

  • Manufacturing companies
  • Construction companies
  • Professional service-related companies such as architects, healthcare systems, law firms, dental, engineering, accounting firms, etc.
  • Information technology companies
  • Profitable, growing businesses, in these industries, with gross revenues of $500,000 and above.

Learn more about targeted businesses and opportunities these services can create: Generate Sales with Informal Business Valuations and Buy-Sell Reviews (BB10350C)

The Approach

See this Business Planning Services Fact Finder/RFP to ask key questions to help your business clients identify their financial needs. Then, submit the completed form to request an Informal Business Valuation and Business Planning report.

Training & Resources

  • View Training Presentation | Listen to audio (Presenters: Patti Bell and Steve Parrish)
  • Informal Business Valuation proposal presentation Brainshark role-play
  • Contact Principal directly for this resource: Advanced Solutions