Exit Options Archives - Your ExitMap https://yourexitmap.com/tag/exit-options/ Free Exit Planning Tools for Business Owners Mon, 15 Sep 2025 16:59:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://yourexitmap.com/wp-content/uploads/2026/03/cropped-Site-Icon-YEM-2-32x32.png Exit Options Archives - Your ExitMap https://yourexitmap.com/tag/exit-options/ 32 32 122889523 The Exit Planning Fallacy – A Business Owner’s Perspective https://yourexitmap.com/the-exit-planning-fallacy-a-business-owners-perspective/ https://yourexitmap.com/the-exit-planning-fallacy-a-business-owners-perspective/#respond Mon, 15 Sep 2025 16:59:40 +0000 https://yourexitmap.com/?p=10446  One of the most common sales pitches you might hear from someone claiming to help you “enhance value” goes something like this: “I’ve reviewed your company and believe it’s worth $4.2 million today. With the right planning, it could be worth $7.7 million. Would you rather exit with $4.2 million or $7.7 million?” That’s not really a question—it’s a setup. Of course, no business owner would willingly choose the smaller number. But the real issue isn’t which number you prefer. It’s what it actually takes to bridge that gap—and whether you’re being given a full picture. Are You Falling for the Planning Fallacy? There’s a ... Read more

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]]> https://yourexitmap.com/the-exit-planning-fallacy-a-business-owners-perspective/feed/ 0 10446 Cash Flow Normalization https://yourexitmap.com/cash-flow-normalization/ https://yourexitmap.com/cash-flow-normalization/#respond Thu, 20 Feb 2025 17:16:00 +0000 https://yourexitmap.com/?p=9587 Cash flow normalization is done with the intention of identifying Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). These differing measures are not interchangeable, but are used by different classes of buyers for different categories of acquisition.

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]]> https://yourexitmap.com/cash-flow-normalization/feed/ 0 9587 Purpose – Life After the Sale Part 3 https://yourexitmap.com/purpose-life-after-the-sale-part-3/ https://yourexitmap.com/purpose-life-after-the-sale-part-3/#respond Fri, 03 Jan 2025 15:03:10 +0000 https://yourexitmap.com/?p=9766 The third component of life after the sale is Purpose – “Having as one’s intention or objective.” Many exit planning advisors discuss the three legs of the exit planning stool – business readiness, financial readiness, and personal readiness. In our previous two articles, we focused on two of the “big three” components of a successful life after the sale, activity and identity. The third is purpose.

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]]> https://yourexitmap.com/purpose-life-after-the-sale-part-3/feed/ 0 9766 Private Equity and Privately Held Businesses https://yourexitmap.com/private-equity-and-privately-held-businesses/ https://yourexitmap.com/private-equity-and-privately-held-businesses/#respond Mon, 28 Oct 2024 15:22:17 +0000 https://yourexitmap.com/?p=9563 Depending on who you are talking to, Private Equity is either the Great Satan or the savior of small and mid-market companies in the United States. The stories depend a lot on the personal experience of the speakers.

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]]> https://yourexitmap.com/private-equity-and-privately-held-businesses/feed/ 0 9563 Are You Financially Ready to Exit Your Business Even if it Happened Tomorrow? https://yourexitmap.com/are-you-financially-ready-to-exit-your-business-even-if-it-happened-tomorrow/ https://yourexitmap.com/are-you-financially-ready-to-exit-your-business-even-if-it-happened-tomorrow/#respond Tue, 23 Jul 2024 16:09:50 +0000 https://yourexitmap.com/?p=9216 Exiting a business is a significant decision that requires careful consideration, particularly regarding financial readiness. Whether you’re considering retirement, pursuing new ventures, or simply ready to move on, being financially prepared is crucial for a smooth transition.

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]]> https://yourexitmap.com/are-you-financially-ready-to-exit-your-business-even-if-it-happened-tomorrow/feed/ 0 9216 20 Red Flags to Look Out for When Buying a Business https://yourexitmap.com/20-red-flags-to-look-out-for-when-buying-a-business/ https://yourexitmap.com/20-red-flags-to-look-out-for-when-buying-a-business/#respond Tue, 07 May 2024 14:08:44 +0000 https://yourexitmap.com/?p=8904 Buying a business is an opportunity to skip the growing pains of launching a startup. It’s a chance to start with a proven model with customers and cashflow. How can you tell if the prospective business is a genuine investment opportunity or a disguised escape route for a burnt-out owner? The following is a list of the top five things to consider when prospecting a business purchase – and some red flags for each category so you can recognize trouble a long way away. This list is no way exhaustive and there are many other issues to consider when buying a business. However, nailing these ... Read more

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]]> https://yourexitmap.com/20-red-flags-to-look-out-for-when-buying-a-business/feed/ 0 8904 Purpose After the Sale https://yourexitmap.com/purpose-after-the-sale/ https://yourexitmap.com/purpose-after-the-sale/#comments Mon, 04 Mar 2024 17:08:53 +0000 https://yourexitmap.com/?p=8842 Purpose after the sale is one of the biggest challenges for an exiting owner.

Purpose – “Having as one’s intention or objective.”

Many exit planning advisors discuss the three legs of the exit planning stool – business readiness, financial readiness and personal readiness. In our previous two articles, we focused on two of the “big three” components of a successful life after the sale, activity and identity. The third is purpose.

So many advisors point to the 75% of former owners who “profoundly regret” their transition, and say it’s because they didn’t make enough money. To quote Mr. Bernstein in the great film Citizen Kane, “Well, it’s no trick to make a lot of money…if all you want is to make a lot of money.”

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]]> https://yourexitmap.com/purpose-after-the-sale/feed/ 1 8842 Personal Vision – Life After the Sale Part 2 https://yourexitmap.com/personal-vision-life-after-the-sale-part-2/ https://yourexitmap.com/personal-vision-life-after-the-sale-part-2/#respond Mon, 26 Feb 2024 16:24:53 +0000 https://yourexitmap.com/?p=8827 In our last article about life after the sale we discussed identity. Even when business owners are comfortable with who they are, however, there is still the nuts and bolts issue of activity.

A business owner spends 20, 30, or (not uncommonly with Boomers,) 40 years focused on running a business. Unless they’ve built a substantial organization that is run by employees, it likely remains their biggest single time commitment right up until they leave. That commitment is frequently a lot more than 40 hours.

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]]> https://yourexitmap.com/personal-vision-life-after-the-sale-part-2/feed/ 0 8827 Personal Vision – Life After the Sale Part I https://yourexitmap.com/personal-vision-life-after-the-sale-part-i/ https://yourexitmap.com/personal-vision-life-after-the-sale-part-i/#respond Tue, 30 Jan 2024 16:09:13 +0000 https://yourexitmap.com/?p=8696 Life after the sale is often both the most important and most neglected factor in exit planning. Although (according to two different surveys in 2013 and 2022,) 75% of owners report regrets or unhappiness a year after the transition, exit plans continue to be constructed primarily around financial targets. In the event you haven’t heard this since you were five years old, “Money doesn’t fix everything.” Superficial Planning To be fair, most advisors include some conversation about “life after” in their planning conversations. Unfortunately, they are often satisfied with the features associated with an abundance of free time. Visiting the family, RV’ing through the country, ... Read more

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]]> https://yourexitmap.com/personal-vision-life-after-the-sale-part-i/feed/ 0 8696 Exit Strategies – The Road Less Traveled https://yourexitmap.com/exit-strategies-the-road-less-traveled/ https://yourexitmap.com/exit-strategies-the-road-less-traveled/#respond Thu, 28 Sep 2023 16:20:46 +0000 https://yourexitmap.com/?p=8329 The road less traveled is often a misimpression when considering a transition from business ownership. Surveys show that roughly 85% of owners expect their exit to happen via a sale of the business to a third party. A third-party sale is certainly attractive. The idea of monetizing decades of work in one lump-sum payoff seems equitable. Years of sacrificing to “invest in the business” is supposed to generate a return. “He (or she) sold the company” when applied to someone who is clearly enjoying a comfortable lifestyle in retirement acts as an advertisement for the benefits of cashing out. Unfortunately, that isn’t only less frequent ... Read more

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]]> https://yourexitmap.com/exit-strategies-the-road-less-traveled/feed/ 0 8329 The Build vs. Buy Equation https://yourexitmap.com/the-build-vs-buy-equation/ https://yourexitmap.com/the-build-vs-buy-equation/#respond Fri, 15 Sep 2023 14:59:16 +0000 https://yourexitmap.com/?p=8259 If you’re wondering what your business might be worth to an acquirer, there is a simple calculation you can use. Let’s call it “The Build vs. Buy Equation”. At some point, every acquirer does the maths and calculates how much it would cost to re-create what you’ve built. If an acquirer figures they could buy your business for less than they would spend on both the hard and soft costs of re-deploying their employees to build a competitive product, then they will be inclined to acquire yours. If they think it would be less costly to create it themselves, they are likely to choose to ... Read more

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]]> https://yourexitmap.com/the-build-vs-buy-equation/feed/ 0 8259 Focus On Net Proceeds And Not Just Sale Price When Selling Your Business https://yourexitmap.com/focus-on-net-proceeds-and-not-just-sale-price-when-selling-your-business/ https://yourexitmap.com/focus-on-net-proceeds-and-not-just-sale-price-when-selling-your-business/#respond Tue, 25 Apr 2023 15:06:13 +0000 https://yourexitmap.com/?p=7919 John was excited as “today is the day!” Twenty-five years ago this month he had started his home remodeling business with a truck and a tool belt, and today at 3pm he was going to the deal table to sell his business to a much larger remodeling company. It would be a strategic purchase for the buyer who was willing to pay a premium with a goal of expansion in the region. With the check received today, John knew he could now do everything he and Kim had thought about doing for years — travel, more time with the family and for hobby’s and other ... Read more

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