Transferable value is essential for exit plan

Most business owners in Illinois plan to sell or transfer ownership of their company at some point in their lives. Whether they are planning to give up their leadership role when they retire or sell their business so that they can move on to other projects, they need to have an exit plan.

A major part of any exit plan is building up a company's transferable value. This is what buyers are looking for, because it is how much the business is worth once its owner leaves. If owners are doing almost everything themselves and not transferring any leadership responsibilities to other people, they probably won't have a good exit plan, and the business won't have much transferable value.

Creating a growth plan is a good way to build a company's transferable value and help business owners to attain financial security upon their exit. A growth plan should begin on the day it is written and end on the date that the business owner expects to exit the business. A business owner may create a goal to increase revenue so that the business can be sold for a higher price.

A business owner can only do so much work in a day, so part of a growth plan may be to create a management team that can work to increase revenue. As part of the growth process, an attorney who has business law experience can be of assistance in preparing employment contracts for key employees who can add value to the company in the event of a subsequent buyout.

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