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BERNIE SIBEN, from page 9

from previous pursuits with this client, such as adding the client’s logo to the page layout despite the suggestion from marketing staff that the client might not like this? In addition, when not selected, there is a comparison to be made with the selected firm. A marketing person won’t hesitate to ask the client what he/she liked or didn’t like about the winner’s proposal. The technical folks often do not think to ask this; they are only concerned with what they did that was good or bad. “A marketing person won’t hesitate to ask the client what he/she liked or didn’t like about the winner’s proposal. The technical folks often do not think to ask this; they are only concerned with what they did that was good or bad.” Given the range of concerns to be discussed during a debriefing session, and the need to ensure that a calm discussion doesn’t deteriorate into “the last time that client ever talks to us,” one might even make the case that all debriefings should be attended only by marketing staff, with the principal and project manager given an opportunity to suggest questions, but not the opportunity to attend. BERNIE SIBEN, CPSM, is owner and principal consultant with The Siben Consult, LLC, an independent A/E marketing and strategic consultancy located in Austin, Texas. He can be reached at 559.901.9596 or at siben@sibenconsult.com. is advisable that a valuation of the shares be conducted at the initiation of this process. Thereafter, regular monitoring of share value should be done to ensure that coverage is keeping pace with growth in stock value. ❚ ❚ What happens to the coverage when a partner leaves or retires? A majority of policies are purchased as permanent life insurance. However, term life insurance may be less ex- pensive and can be bought to cover a partner until he or she leaves or retires. ❚ ❚ Should this be strictly life insurance or should disability also be covered? Considering the age range of the average partner in an A/E/P firm per the survey, disability is as likely if not more so than death. Beyond the owners of stock in your firm, if you have key employees that drive business and the loss would cause instability, key person insurance should be considered for them as well. From a value perspective, the lack of insurance coverage on owners and key people is a major risk factor that drives discount rates up and values down. This type of coverage is as important as any other and your insurance agent can help to direct you in securing the appropriate policies. If you do not have it, please strongly consider spending the money to get it. TRACEY EAVES, MBA, CBA, CVA, BCA, CMEA is a member of the valuation consulting team at Zweig Group. She has been valuing privately held company interests for more than 17 years. Contact Tracey at teaves@zweiggroup.com or directly at 505.258.8821.

Having a member of the marketing staff attend the debriefing results in several important benefits for your firm and its representatives: ❚ ❚ A marketing staff member has nothing about which to become defensive. He/she can be a calming influence, and can quash a potentially offensive response before it manifests and takes the session in the wrong direction. The marketing person can take over the discussion if he/she thinks it is tak- ing on a more volatile characteristic than would be desired. ❚ ❚ A marketing staff member knows there is more to being selected than the technical information. The firm’s reputa- tion and processes to ensure superior client service can be as important a discriminator in the selection process as the firm’s technical experience and product. ❚ ❚ Marketing staff are sensitive to the client’s response to both the content and the look of a proposal. Most of the technical folks focus on the client’s response to the proposal’s technical approach, project experience, and proposed staff- ing. But marketing staff will also be sensitive to the client’s response to the look of the proposal, such as: ❚ ❚ Did the cover make them want to open the document? ❚ ❚ Did the page layout make for an inviting read? ❚ ❚ Was the page so cluttered with unnecessary graphics that the most important information was hard to find? ❚ ❚ Did the use of certain kinds of graphic images (i.e. clip art) make the document look something less than profes- sional? ❚ ❚ Did the PIC or PM insist on ignoring the lessons learned

TRACEY EAVES, from page 11

on business operations. For those left behind, the impact also involves the change in ownership when an heir inherits that person’s stock. Without the means to remedy the situation with the buyout of those shares through life insurance proceeds and a buy-sell agreement the business could find itself in jeopardy. Those firms with sole ownership of the shares are even more at risk because remaining staff may not have the money to buy the firm from an heir nor maintain the working capital necessary to move forward. “From a value perspective, the lack of insurance coverage on owners and key people is a major risk factor that drives discount rates up and values down. This type of coverage is as important as any other.” The investment of a few thousand dollars per year may, in the end, secure the continued existence of the business. Considerations to make when buying this type of insurance include: ❚ ❚ What is adequate coverage? The firm should carry enough coverage to fully fund the buyout of stock from the deceased’s estate and provide for additional cash to help right the ship. It

THE ZWEIG LETTER December 11, 2017, ISSUE 1227

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