In Part 2 of Rizolve Partners’ five-part exit planning series, Steve Cummings and Bob Cariglia discuss why business owners need to align personal goals with business goals before entering a transition process.
Many owners spend decades building a company, yet have not clearly defined what life should look like after the exit. This episode explains how that personal vision connects directly to wealth planning, tax planning, deal structure, employee retention, business valuation, and timing. A central concept in the discussion is the “magic number” — the after-tax cash value required to support the owner’s personal objectives after the sale. Knowing this number helps owners make better decisions, assess offers with confidence, and understand whether the business needs more value growth before going to market.
In this episode, Steve and Bob cover:
• Why exit planning should start 3 to 5 years before a planned transition
• How personal goals shape business value targets
• Why after-tax proceeds matter more than the headline sale price
• How holdbacks, earnouts, and deferred consideration affect cash flow
• Why key employee retention can influence deal structure
• How to identify and close a valuation gap
• Why an aligned advisory team can improve confidence, timing, and outcomes