Exit By The Numbers
If you are like most business owners you will work until you reach your “number”. Many owners choose their number based on their age, or perhaps a calendar year. If these are your criteria for exiting you may be greatly disappointed when you reach your number.
You have two groups of assets – personal and business. A good financial advisor can determine the amount of cash you will need to fund your desired retirement lifestyle – your lifestyle number.
A Valuation Expert can review your business and determine the value of your business today and how that value is likely to change over the next few years. When the value of your business and personal assets is less than your lifestyle number you have an Asset Gap that must be closed before you can retire with the lifestyle you want.
When you are ready to cash out of your business but you find that the sale of your business cannot close the Asset Gap you have several choices.
- Get a fabulous return on your personal assets every year until the gap is closed
- Continue to work for an additional five to ten years
- Downsize your retirement aspirations
- Sell your business for whatever you can and take a job in retirement
- Various combinations of the above
- Build Enduring Value
Closing The Asset Gap
To close the Asset Gap and double the value of your business in as little as two years you must leverage the eight factors that drive Enduring Value. Business Research Group is Virginia’s #1 Trusted Authority on building Enduring Value. We want to help you understand what your business is worth today, and how you can double that value before you exit your business.
If you rely on rules of thumb, multiples that have no context, or swags by so called “experienced” parties you run the risk of becoming one of the disappointed owners who create an exit plan from the options listed above. We don’t want to see that happen. Our valuation experts have earned the title of Certified Business Appraiser by The International Society of Business Appraisers and we work exclusively with Insurance Agency owners like you because we believe you deserve more time, more money, and more enjoyment.
For information on this topic, download The Exit Checklist. We provide practical answers to the basic questions all sellers ask:
What is my risk aversion level?
What will my role be after I exit?
How do I ensure confidentiality?
The Exit Checklist is your first step to a happy retirement. Try it now for valuable insights into your future exit.