Buyout Barometer ™

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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
5. Future Growth Are you optimistic about the growth prospects for your business?	1 = No, not at all 6 = Yes, strongly agree 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6
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 1 2 3 4 5 6