One thing that is overlooked when addressing value and sellability is employee compensation. Implementing a strategic compensation plan is a win-win for both employees and owners. It rewards employees, encourages value building behavior, reduces turnover, improves company stability, and much more! Utilizing a strategic compensation plan can be a first step in exit planning that works to support all types of exits including internal and external options. The earlier it is implemented the more successful and stable the company becomes, opening the owner up to more exit options even if exiting the business is years down the road.
Jeanine Barkan is the Co-Founder & CEO of PoleStar Succession & Exit Strategists.