Don’t Regret Your Business Exit—Know Your Freedom Score First

Did you know that over 75% of business owners experience profound regret within a year of selling their company? This shocking statistic highlights a critical truth: selling your business is about much more than the money—it’s about your freedom, identity, and peace of mind.

For many business owners like you, building a company is more than a career—it’s a calling. But what happens when your business exit is no longer the destination, and it becomes time to consider life after the sale? The central question becomes:

• What’s the number you need from the sale of your business to fund your next chapter?

What Are You Really Building Toward?

Why are you doing all this? What are you really working toward?

Many business owners don’t have a clear answer. Their identity is so wrapped up in the business that imagining life after it feels impossible.

The Cautionary Tale:  Consider Jake Kassan, founder of MVMT Watches. After selling his company for $100 million, he found himself anxious, depressed, and disconnected from any real sense of purpose. His North Star had always been financial freedom—but when he achieved it, he felt lost. He had focused on the “freedom from” (work, financial constraints) but not the “freedom to” (purpose, meaning, new pursuits).

The Success Story:  Contrast this with Sara Johnson, who spent two years planning to exit from her healthcare technology company. Before selling, she established a family foundation, researched board positions that aligned with her values, and created a detailed vision for her post-business life. When Sara sold her company, she stepped confidently into her next chapter instead of falling into a void.

The Freedom Score: Your Exit Target

Your Freedom Score is the specific amount of money you need to walk away from your business and fund the life you want. Here’s what shapes it:

• Your post-exit lifestyle goals
• Your annual spending needs
• Your existing assets and expected returns
• Tax strategies and business sale proceeds

This number becomes your target—a way to shift from reactive to proactive planning. It tells you when working becomes optional and lets you make informed decisions about your future.

The Risks of Holding On Too Long

Without a clear Freedom Score and exit plan, you risk:

• Financial Overexposure:  Most owners have the majority of their net worth tied up in their business—a dangerous lack of diversification
• Health Consequences:  John, a manufacturing business owner, suffered a heart attack at 58 after years of saying “just one more year”—forcing an emergency sale at a 30% discount

Life’s Unexpected Turns Can Also Play a Part:

• Divorce (40-50% of marriages end this way)
• Departure of key partners (often without warning)
• Disability (affects 1 in 4 people during their working years)
• Death (leaving loved ones to handle a complex business)

Even if you’re not ready to retire, knowing your Freedom Score gives you options and reduces vulnerability.

Options After Reaching Your Freedom Point

You don’t have to sell your business all at once. Consider these strategies and examples:

• Minority Recapitalization:  Sell a minority stake in your company, retain control, and take money off the table now. Michael, a software company founder, sold 35% to a private equity firm, paid off his mortgage, diversified his investments, and continued growing the business with new resources.
• Majority Recapitalization:  Sell 51% or more, maintain involvement, and unlock substantial liquidity. Lisa sold 65% of her distribution company but stayed on as CEO for four more years, enjoying reduced pressure while mentoring her succession team.
• Earn-Out Agreements:  Sell the business, stay on temporarily, and earn additional compensation based on performance milestones. For example, after selling her specialty food manufacturing company, Amanda agreed to stay on as a consultant for 18 months. Her purchase agreement included an earnout tied to achieving a certain level of annual sales during that period. By helping to maintain performance and guiding the team through the transition, she successfully unlocked the full earnout—adding meaningful value to the exit.

Aligning Your Exit with Your Personal Goals

Exit planning isn’t just about money. It’s about meaning. Ask yourself:

• Daily life:  What will a typical day look like after the sale?
• Values:  What matters most to you—family time, community impact, personal growth?
• Legacy:  What will you be remembered for beyond business success?

This is what we call a Euphoric Exit—one where the financial, emotional, and operational components align perfectly.

Remember: This is a family conversation. Research shows that spousal alignment is the #1 predictor of post-exit satisfaction. Include your partner in planning from day one.

How We Help Business Owners Prepare

At Freedom Financial Partners, we specialize in helping business owners like you find clarity around life’s biggest financial questions. Our process includes:

1. Clarifying Your Vision:  We’ll help you define your ideal post-business life so you have something exciting to move toward, not just away from
2. Mapping Out Income and Expenses:  Together, we’ll create a realistic budget tailored to your dreams—whether that’s global philanthropy or local grandparenting
3. Optimizing Your Investment Strategy:  We’ll help you balance your business wealth with diversified assets to reduce risk while maintaining your lifestyle
4. Developing an Actionable Plan:  We’ll align your Freedom Score with practical steps to achieve it on your timeline

Take the First Step

If you’ve ever asked yourself, “How much is enough?” or “What happens after I sell?”—you’re not alone. Planning for your Freedom Score now can help you avoid becoming part of that 75% who regret their exit.

Schedule a consultation with Freedom Financial Partners to start planning your euphoric exit:

• Call (651) 797-3532
• Book online at ffpforme.com

We look forward to helping you chart your path toward a life of purpose, freedom, and peace of mind.