Personal Readiness Score

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Name
First Name
Last Name
2
Email
example@example.com
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Written personal plan* This field is required.Interests outside of the business. Personal goals and objectives defined and written. Integrated Personal and Financial plans
No documented plan
Have some basic ideas but not documented
Some components documented but small amount
Components documented; more than 50%
Documented plan that needs updating or to be finalized
Completed plan that’s been reviewed by outside advisors
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Personal financial plan - Pre-exit* This field is required.State of the owners Personal Financial Plan
No documented plan
Have some basic ideas but not documented
Some components documented but small amount
Components documented; more than 50%
Documented plan that needs updating or to be finalized
Completed plan that’s been reviewed by outside advisors
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Personal estate and tax plan* This field is required.Level of estate and tax planning completed
No documented plan
Have some basic ideas but not documented
Some basic components from a workshop or online resource but minimal
Components from estate attorney or other resource documented; more than 50%
Estate plan documented but components needs updating or revision
Estate plan documented but components needs updating or revision
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Knowledge of net proceeds* This field is required.Understanding of net proceeds of each exit option
No understanding of potential proceeds and options
Some rudimentary idea of proceeds but not familiar with options or validity
Basic understanding of proceeds and options but has not been validated by outside advisors
Basic understanding of proceeds and options and has been reviewed with outside advisor but no action taken
In-depth review with outside advisor on exit options, validation of basic valuation and proceeds and timeline
Current transition plan with identified goals for exit, valuation, proceeds and timeline with an advisory team
7
Personal financial plan - Post-exit* This field is required.Level of awareness/planning of spending/income requirements
No understanding of potential proceeds and options
Some rudimentary idea of proceeds but not familiar with options or validity
Basic understanding of proceeds and options but has not been validated by outside advisors
Basic understanding of proceeds and options and has been reviewed with outside advisor but no action taken
In-depth review with outside advisor on exit options, validation of basic valuation and proceeds and timeline
Current transition plan with identified goals for exit, valuation, proceeds and timeline with an advisory team
8
Dependency on income from business* This field is required.Level of dependency on the business for income
Exit will not provide proceeds and owner is fully dependent on business continuing to fund income needs
Some income resources exist outside of business but minimal, or, exit will yield minimal income proceeds
Exit or outside resources offer continued income support but not ideal; prefer to stay in business due to current income it provides
Exit or outside resources offer tempting post-exit income needs but not a slam dunk decision
Exit or outside resources offer compelling path to post-business income support. Needs some work to be certain of options
Post-exit income is certain and checks all the boxes. Just a matter of timing and desire
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Knowledge of transition process* This field is required.Degree to which the transition team is defined and engaged
Have a CPA and attorney but have not spoken with them about exit options
Have mentioned it to advisors and cursory discussion but no action taken
Have begun to explore exit options and planning but do not have a team in place beyond CPA/legal
Have verified current CPA and legal advisors are qualified to advise on exit but have not retained an exit advisor to assist
Have begun the exit strategy with Exit Advisor (CEPA®)
Full exit team is in place (Exit Advisor CEPA®, M&A Attorney, Tax Advisor, Estate Attorney and meeting as needed to track to exit goal.
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Established/defined contingency plans* This field is required.Personal contingency plan, buy-sell and appropriate insurance
No documented plan
Have some basic understanding of needs but not documented
Verbal agreement in place with buy-sell options but not underwritten or risk reviewed
Written agreement in place with buy-sell options but not underwritten or risk reviewed
Written agreement in place with buy-sell and has appropriate insurance but may not be current
Current operating agreement in place with buy-sell and has appropriate insurance
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Knowledge of ideal deal structure* This field is required.Knowledge of pros and cons of exit options and deal structures
No understanding of process and options nor have consulted with any resource
Have some basic ideas but unvalidated
Have consulted with advisors at a cursory level and understand the basic process but no action taken
Have consulted with advisors at the exit process at a detailed level but no action taken
Have scenario planned exit plan and deal structure with outside advisors and have a good idea of preferred option
Have chosen an exit option and implementing planning to that end.
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Family awareness of the plan/business* This field is required.Level of family discussions, meetings
There have been no family meeting discussions and there are no plans to address the eventual business transition in the future
The topic comes up infrequently but nothing happens as a result
Family has discussed it once or twice with some ideas mentioned but nothing more
Family has discussed it once or twice with a commitment to do more but don't know where to go from here
We have documented desires and commitments for action and have inquired/retained outside assistance for the succession planning. Have not committed to regular meetings for review.
Succession plan exits for the family and is actively in process for the various/interested family members. Are meeting at least 2X yearly to review and update or adjust plan as needed.
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Your Personal Readiness ScoreThis is your readiness score as a percentage. Use the table on the next page for your personal action plan
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0-17%

Begin the conversations on selling the business with family members and/or partners. Seek advice from current trusted advisors on what to prepare for. Timeline at this stage is 3-5 years to full readiness with outside assistance (longer if DIY). Contact Rick to discuss further.

18 - 33%

Revisit the conversations on selling the business with family members and/or partners. Seek advice from current trusted advisors on what to prepare for. Seek exit advisor to develop the strategy and guide the process. Timeline at this stage is approximately 3-5 years to full readiness with outside assistance (longer if DIY). Contact Rick to discuss further.

34 - 50%

Review exit planning implementation priorities or considerations if DIY. Timeline at this level of readiness is approximately 18 - 36 months. Contact Rick to discuss further.

51 - 67%

Review and assess priority areas for readiness development. Timeline at this level of readiness is approximately 18 - 36 months. Contact Rick to discuss further.

68 - 83%

Maintain and monitor readiness initiatives - verify exit metrics and decide if timing is right to initiate business sale/transition. Timeline for entering sale is approximately 0 - 12 months. Contact Rick to discuss further.

84 - 100%

Maintain and monitor readiness initiatives - verify exit metrics and decide if timing is right to initiate business sale/transition. Timeline for entering sale is approximately 0 - 12 months. Contact Rick to discuss further.
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