Review the Owner's potential personal wealth gap by filling out or adjusting the metrics on screen, understanding how they influence the on screen graphics, to help the understand the long term trajectory.
This tool is relatively simple to use, and quite valuable for understanding the long term outcome of the business' sale.
Begin by inputting the total principle of the potential sale. This will usually be drawn from the previous "Value Range" section's "Estimated Business Value" metric, however this metric will still need to have potential Tax, Legal and other fees removed from it, and then divided amongst the ownership in accordance with their share holding.
From this point, you will aim to input the business owners average yearly expenditure, average estimated interest rate for the funds and ideal age of exit.
Once you have input these metrics, you will be delivered with a graph similar to the below, which can help the business owner understand how long the funds from the sale will last, what their life after plan should look like, what figure they should be selling their business for and even help them better evaluate their exit timeframe.
