Readiness Assessment

Financial Readiness – Most business owners don’t know where they are financially because they are dependent upon their businesses for most of their income. In other words, what would your financial situation be without the business available to pay your income and other expenses? This is where you are financially.

Like most business owners, you are likely dependent upon the income and proceeds from the company and its ultimate transfer to satisfy your lifestyle after leaving the business. We will be discussing personal savings outside of the business, as well as, the balances and contribution rates to your retirement plans. We will forecast your pre and post-transition expenses and illustrate the manner in which your personal lifestyle will be satisfied by your current savings, as well as, the potential net proceeds from your business transition.

We will score your financial readiness. This scoring, along with your projected post-transition lifestyle, will help in determining the options that you have available for transition. We use a Value Gap calculation to illustrate the amount of net proceeds that you need to meet your financial goals. We will discuss any real estate ventures and projected cash flows that may assist you with your post-transition financial lifestyle. We will also provide a personal net worth statement as part of the plan that will be used to make other measurements, such as tax rates and estate tax exposure.

Mental Readiness – Are you ready to leave your business? Mental readiness for a transition is a critical factor for nearly every business owner who wants to continue with their business, but still protect their illiquid wealth. You need to know what the business really means to you – personally – and what you are going to do with your time after the transition. The key indicator of this mental readiness is usually how involved you are in the day-to-day operations within the business. These are critical questions to answer so that you can think clearly through the transition process and design a plan to meet your goals. We will focus on how ready you are to leave and rank your readiness.