A done-with-you planning model that connects the life the owner wants with the business value, operating performance, transferability, and timing required to support it.
Confidential, Advisor-Facilitated Planning Information
This model combines personal financial assumptions, income goals, normalized earnings, buyer-risk judgments, and business value estimates. It should be completed and interpreted with an authorized Lucensys advisor. Lucensys treats these inputs as confidential planning information. We do not sell your personal financial inputs or share them for marketing purposes. Access is limited to authorized Lucensys advisors, facilitators, and service providers needed to prepare, store, or deliver your results, unless you authorize broader sharing or disclosure is required by law.
Planning basis. The marketplace, not the laws of physics, determines price and terms. The calculations are internally consistent, but the inputs and conclusions are reasoned approximations. Use them to plan and compare scenarios, not as a promise of transaction value, timing, tax results, or investment performance.
1
Your Freedom Date Number
What does the business need to sell for to fund your life without it?
Step A - Your Income Target
Total annual income you want from all sources combined
Rental income, royalties, or other non-investment income you'll keep after exit
Passive Income
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Income Gap from Portfolio
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Annual income needed from invested proceeds
Withdrawal Rate
Safe annual draw rate from portfolio
Why a higher rate produces a smaller portfolio: The model is solving backward from the annual income you need. A 3% rate asks each $1 million to support about $30,000 of first-year spending; 4% supports $40,000; and 5% supports $50,000. A higher rate lowers the portfolio required, but provides less protection if returns disappoint or retirement lasts longer. The selected rate is a planning assumption, not an expected annual investment return.
3%
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More cushion · Larger portfolio
4%
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Balanced planning assumption
5%
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Less cushion · Smaller portfolio
Investment Portfolio Needed to Fund Your Income Gap
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Total invested assets needed to generate your income gap sustainably
Step B - Your Walk-Away Number
Investments, savings, other assets - not your home equity or the business
Personal debt you want paid off from proceeds at exit
Excess cash you'd take out at closing
Paid off at closing or assumed by buyer
Step C - Closing Costs & Tax Estimate
Rough estimate only - consult your tax advisor
Third-Party Sale Price Needed
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Modeled base case for funding your Freedom Date
Existing Wealth Outside Business
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After-Tax Proceeds if Paid at Closing
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Illustrative all-cash-at-closing assumption
Total Wealth if Paid at Closing
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After-tax proceeds + outside wealth - personal debt
Surplus / Gap vs Portfolio Needed
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How the Sale Price Becomes Spendable Wealth
Indicated Gross Sale Price—
Less: Intermediary Commission—
Less: Legal Fees—
Less: Employee Bonuses / Retention—
Less: Business Debt Payoff—
Subtotal Before Tax—
Less: Estimated Tax on Proceeds—
Projected After-Tax Proceeds (Your Share)—
Third-party sale is the modeled base case. A recapitalization, management transfer, family succession, partial liquidity event, or continued ownership with a reduced role may realize value differently. Each path still depends on earnings quality, transferability, and the business's ability to operate without excessive dependence on any one person.
Cash-at-closing caution. This proceeds bridge assumes the modeled sale consideration is paid at closing. Earnouts, rollover equity, seller financing, escrows, holdbacks, working-capital adjustments, and extended owner obligations can reduce immediate liquidity even when the headline price is unchanged.
2
Business Value and Freedom Gap
Estimate today's value with BVE methodology, then map the path to your Freedom Date target.
Two businesses with the same profit can command very different prices. Industry, size, earnings quality, owner dependence, customer concentration, and recurring revenue all affect what a buyer may pay.
Step D - Business and Industry
Valuation method: Enter annual revenue to determine whether the estimate will use SDE or EBITDA.
Step E - Normalize Owner Benefit
Bottom-line profit after expenses
Added back only when the SDE method applies
Documented business-paid owner expenses
Normalized Owner Benefit
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Net Income Margin
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Familiar profitability anchor
Normalized Earnings Margin
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Industry Baseline Multiple Range
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Before size and buyer-risk adjustments
Enter the earnings inputs to see how net income is converted into normalized earnings for valuation.
Step F - Set the Three Operating Levers
Choose what the model should solve. Margin and sustainable revenue growth are operating assumptions. The desired Freedom Date is a personal objective. The default view calculates when the target becomes feasible, then compares that modeled timing with the date you want.
The normalized margin the business can reasonably sustain
Ground this in history, capacity, market opportunity, and execution
Your objective; the model will test whether it is realistic
Enter the business inputs to establish the current normalized margin.
Complete the valuation and buyer-risk questions to calculate the modeled Freedom Date.
Step G - What Would a Buyer Discount?
Answer all six questions to calculate the buyer-risk adjustment.
Select an industry, enter revenue and net income, and answer all six buyer-risk questions to generate the business-value and Freedom Date comparison.
Indicated Value - Low
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Indicated Value - Midpoint
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Indicated Value - High
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Value Gap to Freedom Date
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Illustrative Midpoint if Current Negative Risks Reach Neutral
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Illustrative midpoint, without current negative risk adjustments
Illustrative Value Sensitivity
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Reasoned approximation, not a guaranteed recovery
Gap After Illustrative Risk Reduction
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Modeled Years to Freedom Date
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Assumes identified negative risks reach neutral
How Buyer Risk Changes the Business Value
Midpoint Value if Identified Negative Risks Reach Neutral—
Current Estimated Midpoint—
Current Estimated Range—
The math reconciles exactly, but buyer behavior does not. These dollar effects are reasoned sensitivities for planning, not a transaction forecast. A buyer may discount the price, change the terms, require continuing owner involvement, or decline to proceed.
Transaction Consequence Profile
Current Marketability
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Likely Deal-Term Pressure
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Owner Transition Burden
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Value Range Status
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Value and Proceeds Are Not the Same
Indicated Business Value
—
Current midpoint estimate
Expected Cash at Closing
Not Determined
Requires an actual deal structure
Contingent or Retained-Risk Consideration
Not Determined
Earnout, rollover, seller note, escrow, or holdback
Continuing Owner Obligations
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Transition demand suggested by current risks
Methodology
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Applied Multiple Range
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Buyer-Risk Signal
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Current Normalized Margin
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Target Normalized Margin
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Expected Annual Revenue Growth
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Used with the target margin assumption
Target-Year Revenue
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Desired Years to Freedom Date
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Timing Gap
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Annual Normalized Earnings Growth
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Factors Currently Suppressing the Multiple
Year
Revenue
Margin
Owner Benefit
Value (Low)
Value (High)
Risk-Reduced Midpoint
Wealth Velocity Curve
Lucensys Output
Shows how business value changes over time based on EBITDA growth and exit multiple assumptions. The gap between your current trajectory and your Freedom Date target is the number worth fighting for - and the reason the architecture work matters.
Annual Dollars Available
Translates projected exit values into estimated annual dollars available after debt, closing costs, taxes, outside wealth, passive income, and the selected withdrawal rate.
Enter your numbers above to see your Wealth Velocity Curve and what it means for your timeline.
3
Save the Advisor-Reviewed Scenario
Save the scenario after the owner and advisor have reviewed the assumptions, evidence gaps, and modeled timing together.
Working Session Closeout
Turn the scenario into one justified priority.
The model provides a directional picture of the target, current value, value gap, and operating assumptions required. The advisor and owner should now decide which assumptions need evidence, which risks suppress value, and which business change deserves attention first.
Close the session by testing the numbers against the structural reality of the business. What does the normalized earnings trajectory support? What is suppressing the multiple? What evidence would a buyer expect? The answers determine whether the desired Freedom Date is credible and what must change first.
Required closeout decisions
Confirm the assumptions the owner and advisor accept
Identify estimates that still require evidence
Name the largest earnings or multiple constraint
Record the leading owner-dependency or buyer-risk issue
Select the appropriate Lucensys diagnostic or implementation path
Commit to one measurable priority for the next 90 days
Record the evidence gaps, first 90-day priority, and recommended Lucensys next step
Important: These calculations are directional estimates for planning purposes only. They do not constitute financial, tax, or legal advice. Tax estimates are rough approximations. Actual tax liability depends on deal structure, your basis, state taxes, and other factors. Valuation multiples vary significantly by industry, deal type, and market conditions. Lucensys does not guarantee a sale outcome or specific valuation. Personal financial inputs should be treated as confidential planning information and reviewed only with authorized advisors involved in your planning. Consult qualified financial, tax, and legal advisors before making decisions.