For business owners planning their exits, this analysis is important. Many of us simply don’t have a lot of assets outside of our companies so this analysis helps us to understand how much we depend on reaping a certain amount from the sale or transfer of our companies. It also helps us to quantify our lifestyle needs once we are no longer running our companies.

As part of a successful Exit Plan, you should know what your company is worth. You and your advisors need to know whether your company is a dependable, high-performance business or a temperamental company prone to financial peaks and valleys. If it is the latter, incorporate that knowledge into your Exit Plan. Part of the necessary planning includes minimizing or eliminating any weaknesses, making your company more desirable to buyers—thus more valuable.

While there are many uncertainties when planning for the future, one factor that is almost always essential to the success of your future plans is cash flow. Measuring your company’s cash flow and knowing what aspects of your business can be affected by the health of your cash flow are even more crucial in today’s economy.