You’ve poured years — maybe decades — into building your business. But what happens when you’re ready to step away?
That question was the focus of our recent webinar, Is Your Business Ready for What’s Next? Exit Planning for Business Owners, where our experts discussed how to prepare for a sale and transition to new leadership.
Here are the biggest takeaways business owners should know. Prefer to watch instead of read? The full webinar recording is here. 👇
Start Planning Earlier Than You Think
One of the most common themes from the webinar: business owners often wait too long to think about succession or exit planning.
Whether you’re considering a family transition, an employee ownership plan (ESOP) or selling to an outside buyer, the earlier you start, the smoother — and more profitable — the process can be. Planning in small steps over several years makes the process far less overwhelming.
Make Your Business Less Dependent on You
A business that relies heavily on the owner can be harder to sell or transition.
Buyers and successors want to know if the company can operate successfully without you at the center of every decision. That means:
- Delegating responsibilities
- Building a strong management team
- Documenting processes and procedures
The goal is to create a business that runs smoothly, even when you’re not around.
Clean, Credible Financials Are Essential
Your financial statements tell the story of your business. And buyers will read them closely.
During the webinar, we discussed the different levels of financial statements, from internal reports to compiled, reviewed and audited statements, each offering increasing levels of assurance and credibility. Reviewed or audited financial statements, in particular, can give buyers confidence in your numbers and speed up due diligence.
Footnotes, supporting documentation and organized records also help potential buyers understand your operations, risks and commitments.
Know Your Numbers (and Your Key Metrics)
Many business owners rely on gut instinct to judge performance, but buyers want data.
Tracking key performance indicators (KPIs) like gross margins, cash flow, working capital and industry-specific metrics can help you:
- Understand how your business is performing
- Identify areas to improve profitability
- Communicate value clearly to buyers
As one panelist noted, being able to explain your numbers — just like you would describe improvements to a house you’re selling — builds confidence and increases perceived value.
Technology Can Increase Business Value
Modern accounting systems and dashboards can make your business more attractive to buyers.
Dashboards can show liquidity trends, top customers, vendor concentration and profitability at a glance, helping you and potential buyers quickly understand the business. Modern ERP systems and cloud-based tools also make it easier to generate reports, share data and scale operations.
Build the Right Advisory Team
Exit planning isn’t something you should tackle alone. A strong team may include:
- CPAs and financial advisors
- Attorneys
- Business brokers
- Valuation specialists
Each advisor plays a role in preparing your business, structuring the deal and planning for what comes next — especially when your net worth changes significantly after a sale.
Understand How Deals Are Structured
Not all exits look the same. Some buyers offer all-cash deals, while others include earn-outs, equity rollovers or other structures.
Taxes also vary depending on whether a deal is structured as a stock sale or an asset sale. Understanding these differences early can help you make smarter decisions — and avoid surprises when it’s time to close a deal.
Plan for Life After the Sale
Exit planning isn’t just about selling the business. It’s about what comes next.
You’ll want to think about:
- Retirement planning
- Estate planning
- Investing proceeds from a sale
- Your role (if any) after the transition
Having these conversations early ensures you’re prepared personally and financially.
Ready to Start Your Exit Plan?
Exit planning is a big area and this article covers only the tip of the iceberg.
Whether you plan to exit in three years or 10, starting the conversation now gives you more options and more control over your legacy.
Watch the full webinar recording, and if you’d like to discuss your situation, contact us here or call 800.899.4623.
