In the two previous issues of The Exit Planning Review™, we discussed the first two elements that must be in place before you (or your advisors) can create an Exit Plan. The first is a Target Departure Date. An Exit Plan has no relevance unless it is situated within a specific timeframe. The second element is a preliminary financial needs analysis. As owners, a sizeable portion of our wealth is tied up in our companies. Therefore, we not only need to know what our companies are worth, (read about that in the next issue) but we must also know how much money we will need upon retirement.
The third element that you must put in place to kick off your Exit Plan is to pick a Target Successor. Compared to the list of possible departure dates or the variety of needs at retirement, the list of possible successors can be quite short:
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