1. Business Value 

Have you considered the range of potential value of your business and the implications on when to sell based on lifestyle affordability?

(1 is, has not been thought about and has not been analyzed, 6 is yes, value range has been analyzed and comparative analysis completed on timing and ancillary factors)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Age at Business Exit

Have you considered your age when you plan to exit the business?

(1 is, has not been thought about and has not been analyzed, 6 is yes, age has been analyzed incorporated into your preparedness plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Exit Options

Have you considered whether you will retire, be self-employed, or be employed on exit?

(1 is, has not thought about and has not been analyzed, 6 is yes, post-employment scenarios have been analyzed and incorporated into your Ultimate Goals)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Retirement Expenses

Have you considered the minimum level of annual income needed to cover your expenses and have a comfortable lifestyle?

(1 is, has not been thought about and has not been analyzed, 6 is yes, income levels have been analyzed and incorporated into cash flow analysis, monitored quartlerly)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Transition Period

Have you considered the time frame of transitioning regarding possible income loss and the amount of capital erosion? 

(1 is, has not been thought about and has not been analyzed, 6 is yes, timeline, income loss, and capital erosion has been analyzed and a created timeline with ancillary factors created)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6 Expense Factors

Have you factored your post-retirement or transitional income to cover extra-ordinary events such as the funding of weddings, education, holiday, medical, financial support of siblings, and even nursing home or home care?

(1 is, has not been thought about and has not been analyzed, 6 is yes, large purchases have been incorporated into the financial planning and accounted for in cash flow analysis)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. Post Exit Lifestyle

Have you determined your ideal life, post-exit?

(1 is, has not been thought about and has not been analyzed, 6 is yes, post-exit planning has been conducted and an action plan has been created.)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

8 Preparedness Plan

Are you convinced of the value that an Exit and Succession plan would provide to you?

(1 is, a preparedness plan has not been prepared or thought about, 6 is yes, the preparedness plan has been completed, shared with all transition advisors, and rated as realistic in expectations around value)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

9. Wealth Management Gaps

Have you re-assessed your wealth management & investment strategy in the last 12 months to take into account potential future shortfalls of your wealth, post-transaction?

(1 is no, a wealth management plan has not been created and has not factored shortfalls, 6 is yes, the wealth management plan is created and shortfalls have been factored into the plan and scenarios updated real-time) Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Business Valuation

Do you have a good understanding of the current value of your business? Have you factored in the value of your business compared to your overall net worth?

(1 is no, there is no understanding of the current value or my net worth, 6 is yes, a third-party valuation has been completed and incorporated into my net worth statement updated quarterly)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Satisfaction with Valuation 

Based on the estimated value of your business, would you be happy to sell your business for this amount now or wait?

(1 is, no analysis has been completed to know the value gap between selling the business now versus waiting, 6 is yes, the preparedness plan has incorporated a selling timeline with projected values to best identify maximizing value)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Net Proceeds

Have you calculated the net proceeds you will actually receive post-transition? This should be net of taxes, consultant, legal, professional, and broker fees, and any other expenses?

(1 is, Enterprise Value has not been established to calculate net proceeds, 6 is yes, value ranges have been created and a waterfall spreadsheet that enables owners to input multiple terms, pricing scenarios and calculate net proceeds)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Shareholders Information

Do you have a printed list of the names and addresses of all the shareholders in the business?

(1 is, there is not an updated contact, equity percentage list for shareholders, 6 is yes, there is an updated shareholder list with contact information, address, percentage ownership, last annual value, and type of shares owned completed annually)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Shareholders Exit Strategy Agreement

Do all shareholders agree on the exit options available to them and the exit strategy?

(1 is no, the shareholders are not in agreement on exit strategy or options. They are not aware of exit options, 6 is yes, the shareholders have worked with exit planning advisor on preparedness plan and understand current exit options and value type for each option)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6. Shareholders Preparedness Plan and Time Frame

Have all owners agreed on a time frame to exit the business?

(1 is no, a preparedness plan and exit timeline have not been discussed or created, 6 is yes, the preparedness plan has been created with an exit timeline that all shareholders agree on and have signed off on)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. How Strategy Agreement

Do all shareholders agree on the how strategy? i.e. cash, shares, earn-out, etc.

(1 is no, The how strategy has not been discussed, created, or incorporated into a preparedness plan, 6 is yes, the how strategy has been created, discussed by the shareholders and advisors, and agreed on)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

8. Buyer Options

Have you agreed on who will buy your business? i.e. Management buyout, family member, strategic, financial buyer.

(1 is no, there has not been a discussion about who would potentially buy the business or has ownership identified the best buyer type for the business, 6 is yes, we have analyzed the best buyer types and value ranges. It is incorporated into our preparedness plan and advisor team is in agreement. )  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

9. Bonuses

Have you considered whether you will offer bouses or payments to staff or family?

(1 is no, we have not decided if we will bonus staff or family, 6 is yes, we have calculated a bonus formula that varies based on sale price, have created retention bonus structures, and the estimated cost is included our net proceeds waterfall)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Business Owner 

Business owners often have the company expense cars, cell phones, and miscellaneous items. Do you know exactly what you earn and what your real wage would be needed to cover expenses?

(1 is no, there is no clear understanding of expensed costs that would be considered personal post-transaction or the income needed to support, 6 is yes, there is an exact expense amount and income needed post-transaction in the financial plan and being monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Total Personal Income

Can you quantify the amount of money you earn per year from the business and other income from other sources?

(1 is no, there is no clear understanding of total income or what would be needed post-transaction, 6 is yes, there is an exact income amount needed post-transaction in the financial plan, has been tested and will be monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Money You Spend

Have you calculated your personal outgoing cash each month for the family?

(1 is no, there is no clear understanding of total monthly or annual spending, 6 is yes, there is an exact monthly and annual spending analysis completed and incorporated into the cash flow analysis in the financial plan. The plan is being monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Spending Patterns

Can you easily identify in what categories you spend money so you can review in therms of post-transition lifestyle needs?

(1 is no, there is no clear understanding of total monthly or annual spending by category for post-transaction lifestyle, 6 is yes, there is an exact monthly and annual spending analysis by category completed and incorporated into the cash flow analysis in the financial plan. The plan is being monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Cash Flow

Are you in control of your cash flow and have you developed a plan to fund and manage this cash flow, post-transition?

(1 is no, there is no clear understanding of cash flow or a strategy to control cash post-transaction, 6 is yes, there has been extensive cash flow analysis in the financial plan. The plan will be managed and monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6. Extraordinary Items

Can you easily identify planned extraordinary expenses in the short and long term? Is there a plan in place to cover these extraordinary items especially in the first year after exiting the business?

(1 is no, there is no clear understanding or plan for potentially large purchases in the future, 6 is yes, there has been extensive analysis in anticipation of short and long-term life purchases and have been factored into the financial plan and cash flow analysis. The plan will be managed and monitored in this area)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. Control

Have you considered if you could benefit from being in more control of your personal budget, cash flow, and spending habits?

(1 is no, have not thought about or considered, 6 is yes, there is an extensive financial plan that will be managed and monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Wealth Management & Financial Planning

Do you currently have a wealth management account tied to a financial plan?

(1 is no, do not have a wealth management account or financial plan, 6 is yes, have a wealth management plan that has been reviewed for fees, investment strategy, has an Investment Policy and integrated with a long-term financial plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Return on Investment Portfolio

Do you know what ROI you'll receive from your portfolio? Have you factored this into your post-transaction calculations?

(1 is no, have not thought about or considered portfolio returns currently or post-transaction, 6 is yes, analysis has been completed on expected returns and used for cash flow analysis, tax planning and is incorporated into the financial plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Maximum After-Tax Returns

Are you confident your wealth management portfolio is maximizing after-tax returns?

(1 is no, not sure and have not analyzed the status of after-tax returns, 6 is yes, analysis has been completed within the financial plan and is the core of the long-term asset allocation strategy)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Tax Deductions

Have you exhausted all tax deductions strategies in anticipation of exiting the business?

(1 is no, have not created a list of viable tax deductions and eligibility during pre-transition planning, 6 is yes, a list of viable tax deductions has been created with a timeline on filing for those tax deductions and the forecasted impact to the financial plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Level of Debt

Are you comfortable with your present level of debt?

(1 is no, do not have a clear understanding of current debt and impact to my Ultimate Goals, 6 is yes, have an updated asset/liability report generated from my financial plan and is updated real-time)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Amount of Debt

Do you have a clear understanding of the amount of debt you currently possess?

(1 is no, do not have a clear understanding of the total debt amount and impact to my Ultimate Goals, 6 is yes, have an updated asset/liability report generated with total debt obligation from my financial plan and is updated real-time)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Repayment Progress

Will a possible future business exit cause you to accelerate or slow down your current debt reduction strategy?

(1 is no, do not know and do not have a debt reduction strategy, 6 is yes, have calculated my debt pay-down strategy in my preparedness plan and have multiple timeline scenarios incorporated into my financial plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Interest Rates

Do you believe you have the best rates of interest available to you on your loans?

(1 is no, do not have a clear understanding of best rates and have not shopped to see, 6 is yes, have the best rates due to shopping the market every year or based on interest rate movements)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Control

Do you believe you have control over your debt leading up to an exit?

(1 is no, do not have a clear understanding of current debt and impact to my Ultimate Goals, 6 is yes, have an updated asset/liability report generated from my financial plan and is updated real-time)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6. Constricted

Is your present level of debt repayment constricting your ability to reach your Ultimate Goals?

(1 is no, do not have a clear understanding of current debt and impact to my Ultimate Goals, 6 is yes, have an updated debt reduction strategy generated from my financial plan and is updated real-time)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. Restructure

Do you believe you could benefit from restructuring your current debt in preparation for an exit?

(1 is no, do not have a clear understanding of debt restructuring process, 6 is yes, have created a debt restructuring plan and timeline in my preparedness plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Financial Stability

Are you comfortable that your spouse and /or dependents will be financially stable in the event of your death?

(1 is no, do not know if my family will be well taken care of upon death, 6 is yes, the financial plan has incorporated insurance needs, cash flow strategies incorporated into the preparedness plan that answers the questions of financial stability)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

Cost of Living

In the event of your death, woul your surviving dependents be able to continue to meet their expenses and obligations into the future? This includes: meeting debt commitments, paying bills, and basic living essentials to the same standard to which they currently enjoy?

(1 is no, do not know if dependents would have the same cash flow upon my death, 6 is yes, the financial plan has incorporated the family's long-term cash flow needs and have been met through investment, insurance, and liability management)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Disability

In the event of you becoming disabled and unable to manage the Company and earn an income, do you believe you and your family will be able to maintain your current lifestyle and obligations?

(1 is no, do not know if the family will be able to maintain the current lifestyle with a disability, 6 is yes, the financial plan has incorporated short and long planning into the financial plan and is monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Illness or Injury

In the event of an illness or an injury preventing you from working for more than 60 days, are you comfortable you have enough savings to be able to support you and your dependents, as well as meet all your financial commitments?

(1 is no, do not know if the family will be able to maintain the current lifestyle with a short-term disability, 6 is yes, the financial plan has incorporated short and long disability planning into the financial plan and is monitored)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Insurances In Place

Do you have life and disability insurance policies in place? If so, does your spouse and family have the details of all policies?

(1 is no, I do not have life and disability insurance policies in place, 6 is yes, I have both updated life and disability insurance in place that is incorporated into my financial plan.)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6. Long Term Care

Have you considered long-term health care and expenses and factored them into your future forecast expenses? Have you considered long-term care insurance policies for you and your family?

(1 is no, have not considered or have long-term disability insurance, 6 is yes, long-term insurance has been incorporated into my comprehensive financial plan and is monitored regularly)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. Review Insurance Plans

Have you reviewed your present insurance plans both business and personal to ensure proper coverage and pricing?

(1 is no, have not had my personal or business insurance reviewed or assessed and not sure if I have proper coverage, policies, or pricing, 6 is yes, both personal and business insurance has been reviewed, updated, and is on schedule to be reviewed every two years moving forward. It is also incorporated into my comprehensive financial plan and is monitored regularly)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Estate Plan

Have you had your current estate plan reviewed in preparation of an exit?

(1 is no, do not have a estate plan in place, 6 is yes, have had current estate plan updated to include business and ownership transfer strategy to my trust. It is part of my preparedness plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Trust

Have you discussed the benefits of estate planning before your exit?

(1 is no, have not had a discussion with or have a trust attorney, 6 is yes, have created all trust documents in preparation of a sale and know exactly which assets will be placed in the trust and the type trust structure needed)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Peace of Mind

Do you have peace of mind that in the event of your death, your assets will be distributed as per your wishes?

(1 is no, do not know currently how my assets including ownership in the business will be distributed, 6 is yes, have created all trust documents and at death know exactly what actions will be taken with the business and how assets will be distributed and transferred to the trust. In my preparedness plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Estate Planning

If you currently have an estate plan, have you had it reviewed in the last two years?

(1 is no, have not had my estate plan reviewed in the last 2 years, 6 is yes, have had my estate plan reviewed and updated in anticipation of an exit)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

5. Adviser Review

Has your estate attorney, wealth advisor, and exit planning advisor reviewed your Ultimate goals together to ensure alignment of your trust documents?

(1 is no, my advisors have not collectively reviewed my trust documents against my Ultimate goals to ensure alignment, 6 is yes, my advisors have reviewed my Ultimate Goals and have updated my trust documents to ensure proper alignment of goals and estate planning. All documents are executed, gifting has been made and documents are in a centralized e-folder)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

6. Tax on the Estate

Have you considered the tax obligations to the beneficiaries of your estate and created a trust transfer strategy?

(1 is no, there has not been a plan put in place to analyze and minimize the tax obligation for the beneficiaries of my estate, 6 is yes, as a part of the financial planning within the preparedness plan analysis has been completed and an estate tax minimization plan implemented for asset transfer to the estate with all estate documents updated and executed)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

7. Business Contingency Plan

Have you developed a contingency plan in the event of your death that details the transition of your business to other owners?

(1 is no, there is currently no contingency plan, 6 is yes, I have worked with my exit planning advisor and created a contingency plan, have key many insurances and an updated Buy/Sell Agreement)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

8. Business Assets

Have you ensured that your shareholding in the business and your business assets have been considered in your estate plan?

(1 is no, have not had an asset transfer discussion, 6 is yes, have had discussions and created an asset estate transfer plan with a detailed list of assets for transfer in the preparedness plan and financial plan)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Service

Are you pleased with the service that your financial advisor is providing?

(1 is no, do not have a close relationship with my current advisor. Feels like a broker relationship, not a planning relationship, 6 is yes, my current advisor is working closely with my exit planning advisor and is a key part of my transition team. They have worked on the financial planning portion of my preparedness plan and are monitoring key initiatives against my Ulitmate Goals)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

2. Level of Confidence

What is your level of confidence with the advice you are receiving from your financial planner?

(1 is no, there is no confidence in my current advisor, no communication, and no plan, 6 is yes, complete confidence based on the team planning approach and the tracking to goals. Also, there is an action plan in place that I can track in real-time that provides extreme confidence in the achievement of my Ultimate Goals)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

3. Goals and Objectives

Do you believe that your financial advisor understands you, your Ultimate Goals and how to accomplish your goals?

(1 is no, I do not have confidence that my current financial advisors understand me, my Ultimate Goals, and how to accomplish those goals, 6 is yes, my advisor has worked closely with me and my other advisors on understanding me, my thoughts, and Ultimate Goals. they have created a financial plan that incorporates my Ultimate Goals and tracks progress to achievement in real-time)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

4. Up to Date

Is your financial advisor staying up to date with your needs and capable of handling the complex needs of planning for the sale of your business?

(1 is no, my current advisor is not in the loop on my changing financial landscape and does not demonstrate the skills to be a long-term meaningful asset, 6 is yes, my financial advisors have been active in engaging and preparing me for the sale. my advisor has been working closely with my transition team to complete my preparedness plan and financial plan and is very knowledgeable of the planning steps needed in a business sale)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.

1. Best Interests

Do you have confidence that your financial advisor is always placing your needs first? Are they a fiduciary?

(1 is no, it does not feel like they are placing my needs first and I am not sure if they are a fiduciary, 6 is yes, my advisor is a fiduciary and by law has to place my needs first. Their planning and team approach has made me confident that my needs are primary)  Pick a number that represents where you are from 1 to 6 or N/A if it applies.