A Process for Evaluating Various Exit and Succession Options

The process for evaluating your exit and succession options is actually fairly simple.

Start by deciding which of the three valuation categories you fall within:

If you are truly capable of achieving a premium, you need to be aware of it, especially if you are contemplating succession. There may be a significant discount associated with pursuing a succession plan as opposed to exiting via a business sale in this case.

If you have many of the impediments to selling, you may wish to rectify these. If change is not in the cards, a Cash Flow driven strategy may be the most appropriate.

If you are in neither category, the difference in attainable value from exit versus succession may be small and you should focus on the goals as your means of making a decision.

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