Financial Security Assessment
& Implementation:
The measure of the success of any exit plan is whether it leaves the business owner in a position where he or she will be financially secure once the transfer of ownership has been completed.

HOW MUCH WILL I NEED?
We begin the process by conducting an analysis of the expected financial needs of the owner and the family at the targeted exit date taking into consideration expected income needs, projected time horizons, life expectancy considerations capital expenditure projections, legacy objectives and other relevant factors.

HOW MUCH DO I HAVE?
We next analyze the projected future value of the business owner's existing investments along with expected future savings and investment projections, expected future income sources such as social, security, pensions, etc., expected inheritances and other relevant sources of capital that are expected to become available in the future to help meet the owner's and family's post-transition financial security needs.
 
HOW DO THEY COMPARE?
Once we have estimated now much investment capital will be required post-exit to produce an adequate level of cash flows to meet the owner's and family's lifestyle maintenance and other financial security needs, we can then compare this capital objective to the expected future value of existing non-business capital resources. 

DEALING WITH A SHORTFALL
If there is a shortfall between the projected capital need and the projected amount that is expected to be available from non-business sources, this shortfall will, by default, have to be made up from either (1) the proceeds from the sale of the business, or (2) from value that can be extracted from the business in the form of compensation, dividends or other benefits that can be extracted from the business prior to transfer, or (3) some combination of (1) and (2).