In this chapter we consider why business valuation is important to exit strategy planning. We discuss:

• the relationship between value and the timing of your exit • some of the misconceptions business owners have about business values and how this can

lead to unrealistic expectations and plans • some of the definitions and principles of valuation, before explaining a simple business

valuation method • the value of goodwill • the fact that an understanding of future value can help you calculate the cost/benefits of

an exit strategy plan • the importance of taxation planning and whether time or value is more important to you • why some businesses sell for more than their valuations.