My professional experience has reaffirmed that a business owner cannot commit to the difficult emotional process of replacing themselves (succession) until they can clearly envision their financial future (exit plan) and accept the reality that they will not outlive their money in retirement.
An exit plan is a necessary tool that will assist the business owner in controlling and visualizing the process of transferring and monetizing their business while getting a better understanding for the financial aspects of the transaction. Since approximately 70 percent of a business owner’s wealth is trapped inside their illiquid business, this should become a top priority.