What is one benefit of a Triggering Event in exit planning?

A Triggering Event in exit planning is significant because it establishes a clear timeline for exit. This event helps business owners recognize that the time has come to begin planning their exit strategy, whether due to personal reasons, market conditions, or other factors. By identifying a specific triggering event, owners can align their exit strategy with their personal and financial goals, ensuring a smoother transition.

Although identifying the Profit Gap can be a crucial part of the overall exit planning process, it does not directly relate to the concept of a Triggering Event. The primary purpose of a Triggering Event is to clarify when and how an exit should take place, rather than to directly assess financial aspects like profit. Predicting potential buyers or determining employee satisfaction are also relevant considerations in exit planning, but they do not directly address the timeline aspect that a Triggering Event provides.