Buyout Barometer TM

An Assessment for Business Owners

Instructions: Provide answers on a sliding scale from 1-6 with 6 being reserved for area(s) of complete mastery.

1. Business Valuation

Do you have a good understanding of the current value of your business? Do you know the portion of your overall net worth that is comprised of the business?

1 = No, not at all
6 = Yes, strongly agree

2. Business Diversification

My company has an established, diverse, and stable base of customers and suppliers.

1 = No, not at all
6 = Yes, strongly agree

3. Financial Controls

My company has formal financial controls to monitor and minimize expenses and maximize revenue and profits.

1 = No, not at all
6 = Yes, strongly agree

4. Key Employees

My employees/managers are incentivized to remain post-sale AND to continue to grow the business.

1 = No, not at all
6 = Yes, strongly agree

5. Future Growth

Are you optimistic about the growth prospects for your business?

1 = No, not at all
6 = Yes, strongly agree

6. Exit Planning Timeline

I have clarity about when I plan to transition the business and I know what I’ll be doing next.

1 = No, not at all
6 = Yes, strongly agree

7. Common Mistakes

Are you aware of the common pitfalls most business owners make when selling and ways to avoid making similar mistakes?

1 = No, not at all
6 = Yes, strongly agree

8. Cash Flow Needs

Do you know the level of annual income needed to cover your financial goals and ongoing expenses to fund a comfortable lifestyle?

1 = No, not at all
6 = Yes, strongly agree

9. Financial Independence

Based on your anticipated living expenses and financial goals, do you know how much you need to be financially independent?

1 = No, not at all
6 = Yes, strongly agree

10. Wealth Transfer

Are your heirs prepared to inherit wealth? Are you confident that your estate plan is aligned with your intentions?

1 = No, not at all
6 = Yes, strongly agree

11. Retirement "Pay Check"

Do you know how you'll "get paid" after you exit the business? (Do you have a plan for portfolio income that will replace business income?)

1 = No, not at all
6 = Yes, strongly agree

12. Comprehensive Allocation

Do you have a comprehensive investment strategy that takes into account your business as part of the overall plan?

1 = No, not at all
6 = Yes, strongly agree

13. Pre-Sale Tax Planning

Have you done any planning in advance of a potential sale that may enable you to reduce your tax liability?

1 = No, not at all
6 = Yes, strongly agree

14. Tax Loss Harvesting

Are you actively harvesting investment losses now in order to offset a portion of capital gains from a future liquidity event?

1 = No, not at all
6 = Yes, strongly agree

15. Portfolio Tax Allocation

Are you accumulating wealth in different types of accounts so that you have more control over taxes in retirement?

1 = No, not at all
6 = Yes, strongly agree