What is your number? Your number is the amount you need from the sale of your business. If you already know how much you need from the sale of your business then there is no need to read the rest of this page.
If you don't know your number, you are not alone. We know that this is something most business owners have not taken the time to figure out. When you are contemplating the end of your business involvement knowing your number is critical.
This is where the Exit Your Way® process begins. One of the first things EYW clients do is understand their number. You need to know how much money is needed from the sale of the business.
The amount you need from the sale of your business will vary greatly based on your lifestyle and what you are doing after the sale of your business.
Here are the some of major things to consider:
- Current Lifestyle - How much do you need to support your current lifestyle?
- Major Purchases - Are you going to make any major purchases with the proceeds?
- Taxes - What are the estimated taxes you are going to pay?
Business owners are often surprised that they could sell their businesses from 2.5-6X the annual cash flow. While that may sound like a lot, once you pay off business debt, pay taxes and other costs the net proceeds, could be much less than you need for life after the business.
The Exit Your Way® process helps owners understand their situation with a realistic look at what they will likely receive from the sale of their business.