There is no more important concept in Exit Planning than that of transferable value. Transferable value is how much your business is worth to buyers without you. The characteristics that buyers demand to pay top dollar for your business we refer to as Value Drivers. As the owner, if you are vital to any one of these 9 areas, you have not created transferable value.
Top Nine Value Drivers
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Next-Level Management
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Operating Systems Demonstrated to Increase Sustainability of Cash Flows
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Diversified Customer Base
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Proven Growth Strategy
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Recurring Revenue That Is Sustainable and Resistant to “Commoditization”
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Good and Improving Cash Flow
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Demonstrated Scalability
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Competitive Advantage
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Financial Foresight and Controls
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