Financial readiness is the personal financial dimension of exit preparedness, specifically, whether the proceeds from a business exit will be sufficient to fund the life planned after it.

A business can be operationally excellent and structurally clean and still produce an exit that leaves the owner financially short, because the proceeds, after tax, were not enough to replace the income, lifestyle, and financial security the business provided. Financial readiness closes that gap before the sale, not after.

The work involves quantifying the owner’s personal financial needs post-exit, calculating the after-tax proceeds the business is likely to generate at its current and projected value, and identifying the gap between those two numbers. That gap, the wealth gap, is the financial problem that exit planning exists to solve. Without a personal financial plan that defines the target, there is no basis for knowing whether the exit achieves what it needs to.

Financial readiness starts with a number, what is actually needed from the exit, and works backward from there. See how Wefinx approaches exit planning.

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