Many people assume that when the subject of “exit” comes up with a business owner, we are discussing the owner’s retirement. This is not always true, and assuming it is true creates problems for owners, their companies, and their families.
If you intend to exit by selling your company, either to an outside buyer (a competitor, private equity group, etc.) or an inside buyer (one or more employees), the price you receive at sale will likely be closely tied to the company’s earnings. The higher the earnings, the higher the likely sale price.
Few business tools are as overlooked and under appreciated as the organizational (“org”) chart. Likely, you have diagramed one for your company.
The number one goal most business owners wish to achieve at exit is to reach personal financial freedom. (We define financial freedom as reaching a point where working is a personal choice, not an economic necessity.)