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Build4Success

Equity and Succession Platform

Rich Bort , CLU

National Business Consultant John Hancock Financial Network

2 Legal statement goes here Equity and Succession Platform

John Hancock Financial Network

OVER 50-year-old

Career Agents

The Aging Financial Advisor 2002 2009

52% 70%

OVER 50-year-old

Independent Agents and Financial Advisors

Source: Forces of Change: LIMRA/McKinsey & Company (2009) 3 Legal statement goes here

61% John Hancock Financial Network

The Old Way of Thinking 4 Legal statement goes here

John Hancock Financial Network

Succession Exists for Investment Advisory Businesses 5 Legal statement goes here

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Value of Investment Advisory Practices The financial practice… …may be the largest personal asset Household Assets Investments

Financial Practice

Home Equity Source: FP Transitions 6 Legal statement goes here

John Hancock Financial Network

Comparative Gross Revenue Cap Rate Trailing 12 month 2.5

2.0

1.5

1.0

0.5

0.0

0.9

Dentist

Source: FP Transitions 7 Legal statement goes here 1.0

Doctor

1.1

Accountant

2.3

Financial Advisor John Hancock Financial Network

Rising Equity Values Composite cap rate 2.5

2.0

1.5

1.0

0.5

0.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

est.

Source: FP Transitions 8 Legal statement goes here

John Hancock Financial Network

Challenge with Insurance-based Businesses Lack of portability of recurring revenue Carriers legacy systems Vesting schedules Career contracts

John Hancock Financial Network

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Advisors in Collaborative Models Are More Likely to Be Top Producers Likelihood of success * 9% Indexed to 100 350 300 250 200 150 100 50 0 55%

100 Solo

22%

213 Low Support

14%

238 High Support

*Percent of means top-quartile performance of among representatives and advisors Source: Forces of Change: LIMRA/McKinsey & Company (2009)

338 Multi-Advisors, Reps

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Baby Boomers Still Need Advice More than 40 million retired Americans Number of retirees by age Source: LIMRA analysis of U.S. Census Bureau ’ s Current Population Survey, March 2009 supplement 11 Legal statement goes here

John Hancock Financial Network

Baby Boomers Still Need Advice Top retiree goals are financial independence and having enough income for life Preferences in retirement 12 Legal statement goes here Source: The Positioning of Assets in Retirement, LIMRA, 2009. Based on 942 retirees aged 55-80 with at least $200,000 in household investable assets

John Hancock Financial Network

Colleges Developing Financial Services Curriculum to Address Future Need 13 Legal statement goes here

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Senior Advisors Represent Great Opportunity for Future 14 Legal statement goes here

John Hancock Financial Network

Senior Advisors Want Help

62%

Succession planning a concern Agree strongly Disagree somewhat

55%

Industry not doing good job Agree somewhat Disagree strongly

50%

Succession platform a factor Neither agree or disagree Succession planning is a concern of mine

30% 32% 22% 10% 6%

The industry does not do a good job of helping representatives with their own succession planning A strong succession planning program would influence my decision regarding what company to work for Succession planning has been ignored by the company with which you are affiliated

8% 20% 19% 18% 35% 31% 27% 30% 30% 26% 11% 4 % 12% 8% 20%

Key Finding: 2009 Registered Representative Survey on Equity and Succession, JHFN/Mathew Greenwald and Associates 15 Legal statement goes here

John Hancock Financial Network

Build4Success 16 Legal statement goes here Determine Equity and Succession Management Grow

John Hancock Financial Network

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STEP 1

Valuing Your Business Determine Your Business Value

John Hancock Financial Network

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STEP 2

Protecting Your Business Determine Your Business Value Protect Your Business Value

John Hancock Financial Network

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STEP 3

Growing Your Business Determine Your Business Value Protect Your Business Value Grow Your Business

John Hancock Financial Network

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STEP 4

Transitioning Your Business Determine Your Business Value Protect Your Business Value Grow Your Business Realize Your Business Value

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The Future 21 Legal statement goes here

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Representative New Representative

22 Legal statement goes here The Opportunity

Distribution Company John Hancock Financial Network

Recent Third-party Deals Location Bethesda, MD Chicago, IL Denver, CO Los Angeles, CA Beverly Hills, CA Baytown, TX Wayne Co., OH Tiburon, CA Gold Beach, CA Baltimore, MD Santa Clara, CA Charlottesville, VA © 2010 Business Transitions, LLC Sales Price $2,750,000 $2,100,000 $1,645,000 $1,450,000 $1,300,000 $1,200,000 $1,000,000 $425,000 $300,250 $300,000 $225,000 $156,500 23 Legal statement goes here Number of Inquiries 51 73 95 84 58 89 3 25 42 86 100 95 Number of Offers 4 3 2 4 4 4 1 3 8 6 2 6 Listing to Closing (Wks.) 5.7

3 6 8 4.5

15 10 7 9 53 5 24

John Hancock Financial Network

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John Hancock Financial Network