Think of exit planning like training for a marathon. You wouldn’t just show up on race day and hope for the best, right? You’d prepare, build your stamina, maybe even get a healthcheck and make sure you’re ready to cross the finish line. Selling your business is no different. A solid exit plan ensures you’re ready - financially, emotionally, and strategically - to make the transition a smooth and successful one.

Imagine you’re hosting a dinner party. You wouldn’t wait until your guests are at the door to start cooking, would you? Planning your exit is the same. The earlier you start, the more time you have to perfect the recipe for a successful transition. Plus, it gives you the chance to enjoy the process rather than rushing to throw something together at the last minute.

Selling your business is a transaction. An exit strategy acts as a plan and a roadmap. It’s the difference between throwing a dart at a map and planning a dream vacation. A good exit strategy considers your goals, your timeline, and the legacy you want to leave behind. It’s about more than just the sale price - it’s about making sure the transition works for you, your family, your team, and your customers.

Waiting too long. It’s easy to get caught up in the day-to-day grind and think, “I’ll deal with that later.” But later often turns into too late. The best exits are planned years in advance, giving you time to build value, address any issues, and set the scene for a successful transition. Many owners wait until they’re burned out or facing a crisis to start planning, which limits their options. A rushed exit often means leaving money on the table - or worse, struggling to find a buyer at all.

Ask yourself this: Are you ready to hand over the keys and let someone else drive? Selling a business isn’t just a financial decision; it’s an emotional one too. You’ve poured your heart and soul into this, so it’s natural to feel a little hesitant. But if you’ve got a solid plan, your finances are in order, and you’re excited about what’s next, you’re probably ready.

Treat it like a side project. Dedicate specific time each week to work on your exit plan, just like you would for any other important initiative. And don’t be afraid to bring in experts - they can help lighten the load. 

Start with your goals. Do you want to maximise the sale price, ensure a smooth transition for your team, or retire by a certain date? Once you know what’s most important to you, you can build a plan that aligns with those priorities. Then focus on building value. Buyers want a business that’s profitable, scalable, and not overly dependent on the owner. Clean up your financials, document your processes, and address any risks. The more attractive your business is, the better your exit will be.

Would you try to sell your house without fixing the leaky roof, repainting the walls, or tidying up the garden? Probably not, and these things take time to sort out properly. Buyers want a business that’s ready to go, not a fixer-upper. Preparing in advance means addressing any weaknesses, maximising value, and making your business as attractive as possible. It’s about showing buyers the shiny, polished version of your business - not the one with duct tape holding it together.

Start by taking a good, hard look in the mirror - or, in this case, at your business. What’s working? What’s not? Are your financials clean and organized? Is your team running like a well-oiled machine? The first step is identifying areas for improvement and tackling them head-on. Think of it as spring cleaning for your business. Then take a step back and look at your business through a buyer’s eyes. Are there any obvious risks or weaknesses? Fixing those early will save you headaches later.

It's all about making your business irresistible. Think of your business like a house you’re flipping. You want to make strategic improvements that add value without breaking the bank. In short...focus on growth, and reducing risks. Also look at streamlining operations, diversifying your customer base, and locking in long-term contracts. The goal is to show buyers a business that’s not just profitable but also scalable and sustainable.

Start delegating. Build a strong management team and document your processes so the business can run smoothly without you. Train your team to handle the day-to-day operations, and gradually step back from being the face of the business. Buyers want a turnkey operation, not one that falls apart the moment you leave.

Messy financials, customer concentration (too much revenue from one client), and legal issues are big ones. Buyers want a business that’s stable and low-risk, so addressing these red flags early is crucial. Over-reliance on the owner is another big one. If buyers think the business will fall apart without you, they’ll either walk away or lower their offer. Make sure your team and systems are strong enough to stand on their own.

Yes, but be strategic. Focus on improvements that will deliver a clear return on investment, like upgrading technology or streamlining operations. Don’t waste money on things buyers won’t care about. Also consider whether or not to conduct your own strategic acquisition or two - to bolster your business, enhance margins, and scale revenues as this may significantly increase your multiple at exit without undue risk.

Thinking they can do it all themselves. Selling a business is a complex process, and going it alone is like trying to climb Mount Everest without a guide. You need a team of experts - advisers, accountants, lawyers - who know the terrain and can help you navigate the challenges. Trying to DIY your exit is a recipe for stress and missed opportunities.

Confidentiality is key. Work with an adviser who can market your business discreetly to qualified buyers. The last thing you want is your employees or competitors hearing rumors before you’re ready. Use a blind profile or teaser. This is a document that highlights your businesses strengths without revealing its identity. It’s like a dating profile - enough to spark interest, but not enough to give everything away.

It’s all about telling the right story, (sometimes you can create different narratives for different strategic buyers). Focus on your unique selling points. What makes your business different from the competition? Buyers aren’t just looking at numbers - they want to know what makes your business special. Highlight your strengths, like a loyal customer base, strong cash flow, or growth potential. It’s like dressing for a job interview - first impressions count.

It depends on the business and the market, but it typically takes 3-6 months. The more prepared and attractive your business is, the faster the process will go. Finding the right buyer is like fishing - you need the right bait and a bit of patience. A well-marketed business will attract interest, but it can still take time to find the perfect fit.

Timing is everything. Telling your employees too early can create unnecessary stress and uncertainty. But keeping them in the dark forever isn’t ideal either. Once you’re further along in the process and have a buyer lined up, you can share the news in a way that reassures your team and keeps morale high.

Absolutely. Selling a business is a complex process, and a good adviser can help you find the right buyers, negotiate the best deal, and keep the process on track.

Pre-due diligence is like cleaning your house before a big party. You want everything to look its best before the guests (or buyers) arrive. It’s about identifying and fixing any issues before they become red flags. The better prepared you are, the smoother the due diligence process will be - and the more confident buyers will feel.

It’s the buyer’s way of verifying everything you’ve told them. Compare it to a buyer’s version of a home inspection. They’ll go through every corner of your business - financials, contracts, operations, suppliers, people - with a magnifying glass. It’s stressful because it’s detailed, time-consuming, and can feel a bit invasive. But if you’ve done your homework and prepared in advance, it’s a lot easier to handle.

Get organized. Gather all the documents buyers will want to see - financial statements, tax returns, contracts, etc. - and make sure they’re accurate and up to date. Create a virtual data room. This is a secure online space where you can store and share all the necessary documents. It makes the process smoother and more professional.

Buyers want to confirm that your business is as good as it looks on paper...and they're also looking for risks. Whether it’s financial inconsistencies, legal issues, or operational weaknesses, buyers want to know what they’re getting into. They’re checking for red flags and making sure there are no hidden surprises.

It usually takes between 30–90 days, depending on the complexity of your business. The more prepared you are, the faster it’ll go. Think of it as a marathon, not a sprint. It takes time to go through all the details, but being organized can help speed things up, minimise stress, increase the chance of closing and avoid any last minute "renegotiations" on price or deal structure.

It depends on the issue. Some problems can be fixed or negotiated, while others might scare the buyer off. The key is to address potential issues before they become deal-breakers. If a problem comes up, don’t panic. Be honest and work with the buyer to find a solution. Most buyers expect some hiccups - it’s how you handle them that matters.

This is when all the legal documents are signed, the money (at least some of it) changes hands, and the business officially transfers to the buyer. It’s potentially the final step in the process, if you are selling 100% in cash upfront (which isn't typical so congrats if that's you!).

Last-minute surprises. Whether it’s a change in terms or a delay in funding, things can still go wrong at the eleventh hour. Stay focused and work closely with your advisers. This is not the time for assumptions - make sure everything is in writing and you understand the terms of the deal.

Most of the money will hopefully come at closing, but some deals include deferred payments such as an earnout, milestone payment, or seller financing. Sometimes, a portion of the sale price will be set aside and deposited into a secure and independent escrow account to cover warranties or indemnifications. Make sure you understand the payment terms before signing anything.

Take a moment to breathe - then celebrate! Your work may not quite be done yet, but you've just completed a major milestone...congratulations!

Be available. Whether it’s training the new owner or introducing them to key customers, a smooth handover helps protect your legacy and keeps the business running smoothly. Think of it as passing the baton in a relay race. The smoother the handoff, the better the business will perform under its new owner. This may be fundamental to your final exit value if there's an earnout portion in your deal...but even if not, it'll ensure you move on knowing you've done the right thing for everyone involved.

It's the process of transitioning the business to the new owner, and sometimes helping them absorb your business into theirs successfully. Even if you’ve sold the business, you may still have a role to play in ensuring the buyer’s success - especially if an earnout is involved. A well-executed integration plan helps avoid disruptions, keeps employees and customers happy, and reduces the risk of post-deal stress.

Tailwind risks are the challenges or liabilities that can follow you after the sale, even if you’re no longer running the business. For example, if the buyer struggles to maintain the business’s performance, they might blame you for not disclosing certain risks during the sale. This can lead to disputes, especially if an escrow, earnout or seller financing is part of the deal. This is why it’s crucial to be transparent during the sale process and document everything clearly.

Earnouts can be tricky because they tie part of your payout to the business’s future performance. To reduce stress, make sure the earnout terms are clear, realistic, and achievable. Better yet, look at the post-closing earnout payments as icing on the cake...but don't budget for them in your future financial planning. Work with your advisers to negotiate terms that protect your interests, and try to avoid having these payouts dependent on factors beyond your control.

Think of it like selling a car to a friend. If they call you because they don’t know how to change the oil, you might help them out. But if they crash it because they weren’t paying attention, that’s on them. Similarly, if the buyer’s struggles are due to poor management or external factors, you’re not obligated to fix everything. This is why a well-drafted sale agreement is so important - it defines your responsibilities and limits your liability.

Make sure your legal adviser has relevent transactional experience. A strong sale agreement should include indemnity clauses, representations, and warranties that protect you from post-deal disputes. For example, if the buyer claims you didn’t disclose a certain risk, the agreement should clearly outline what you were responsible for and what they accepted as part of the deal. Transparency is a great defense. During the sale process, disclose any risks or potential issues with the business. Buyers are less likely to come back with complaints if they feel you were upfront from the start.

It’s normal to feel a mix of emotions after selling your business. You’ve poured years of hard work into it, and letting go can be tough. If you’re feeling regret, take some time to reflect on why you sold in the first place. Focus on the opportunities ahead - whether it’s retirement, a new venture, or simply more time for yourself. If you’re struggling, consider talking to a mentor or adviser who can help you navigate this transition. Remember, selling your business doesn’t mean losing your identity - it’s just the start of a new adventure.

That’s up to you! Some people dive into new ventures, while others take a well-deserved break. The key is to have a plan for what’s next - whether it’s traveling the world, spending time with family, or starting a new project. Selling your business is the end of one chapter, but it’s also the beginning of another.