Exiting Your Business: Strategies and Considerations
Full and original article published in Worcester Business Journal
Like most closely-held business owners, the majority of your wealth is probably locked in the value of your business. So when it comes time to exit your business, there is no room for error. In order to make sure you are “covering all the bases”, there are several specific areas to consider to make your transition as smooth as possible.
1) Personal Financial Planning
By first identifying and clarifying one’s personal financial needs, resources, and objectives, a business owner will be able to “back into” a number, commonly referred to as the “Retirement Gap” or “Value Gap”. This “Gap” number will represent the value of the business that must be derived from the sale, in order to secure the business owner’s retirement. Once this number is determined, the business owner can then understand the feasibility of exiting the business or not.
Click here to read full article.