Human nature tends to create reality barriers when it comes to dealing with business and personal mortality. However, I do know, and can comment with ontological certitude, that agency principals have left thousands to hundreds of thousands—and in some case millions—of dollars on the table by failing to properly prepare to exit their businesses.
Agency principals have but two options when it comes to monetizing the value of their equity interests as they exit: They can sell the agency internally to key staff or they can sell it externally to competitors, large brokers or other third parties. The value of the owners' equities at exit time will be based on one key and very fundamental factor: the future sustainable earnings capacity of the agency.
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