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The Most Common Challenges of Exit Planning
John Brown, Founder of BEI and Elizabeth Mower, President of BEI talk about the common themes that resonated most frequently in their many conversations with advisors and business owners alike. The two most frequent challenges that arise in any Exit Plan are building value and building continuity.
A part of the initial stages in managing an Exit Plan is to build value in the company. A business must have the ability to create transferable value, or in other words, make sure the business will remain valuable apart from the owner. Business owners have a wealth of knowledge of the business and the industry. Making sure that knowledge is efficiently and effectively shared with the responsible key employees before the owner departs from the company is key to the success of that company.
This challenge goes hand in hand with the concept of building continuity within the organization. Unless business owners are confident that the company will be managed by the right people and with the right resources once they depart, an Exit Plan will not be successful.