By: Patrick Ungashick
In my experience, nearly every business owner aspires to reach personal financial freedom at exit. And for most owners, this is the top priority. We have a proprietary formula called the Exit Magic Number™ calculation, which will tell you how much capital you need to receive from the business between now and the exit to achieve your personal financial freedom.
Note that this calculation focuses on how much you need from the business, not what the business is worth. This is different from the conventional wisdom, which focuses on making sure you get "making value" for the business. If you receive maximum value for the business, but fall short of your Exit Magic Number™, that might not be a happy exit for you. If you receive anything above the minimum needed for financial freedom, the extra is gravy.
Unfortunately, too many business owners don't know their Exit Magic Number™, or are using a number that is wrong--usually too low. The video clip below can show you how, in about five minutes, to properly calculate your Exit Magic Number™. Also, click on the link below to download for free a white paper that I wrote that gives you the step-by-step instructions on how to get this critical information. Knowing your Number reveals to you just how much you need to reach your financial freedom.