Planning Your Business Exit? Start Creating Value Today

When it comes to your eventual business exit, timing is everything—but so is preparation. Too often, owners wait until they’re ready to sell before seriously considering the process, leaving untapped value on the table. The truth? The best time to start planning your exit is before you think you’re ready. Strategic preparation boosts your business’s value and sets the stage for a smoother transition when that day arrives.

Define What a Successful Exit Looks Like for You

Before diving into the numbers, ask yourself what you truly want from your exit. Are you looking to maximize the sale price? Is it important to leave the company in good hands with leadership that shares your values? Maybe you’re focused on providing for your family’s future or enjoying a well-earned retirement.

Your personal and professional goals will shape the right exit strategy—whether that’s a third-party sale, passing the business on to a family member, or transitioning to an Employee Stock Ownership Plan (ESOP). If you’re eyeing succession, now is the time to build a business that can thrive without you.

Get Your Financial House in Order

Any buyer, investor, or successor will want to see a clear picture of your financial health. That means more than just accurate records—it’s about telling the story of your business through well-organized, insightful data. A few key steps:

• Stay on top of regular financial reviews. Track your profit and loss statements, balance sheets, and cash flow consistently. Track your adjusted EBITDA and cash flow regularly.
• Understand your value drivers. A professional business valuation can reveal what makes your business attractive and where there’s room to improve.
• Think tax-smart. Structuring your business to be tax-efficient can make a big difference in what you walk away with. Avoid potential tax pitfalls or surprises resulting from a transaction.

Explore the Right Path Forward

Not all exit strategies are created equal—and that’s a good thing. The best approach depends on your goals. A merger or acquisition may offer immediate financial gain. An ESOP might appeal if you’re focused on preserving company culture and rewarding your team. A third-party sale often brings the highest return but requires robust planning and due diligence. There are pros and cons to each option that must be carefully considered.

Knowing your options helps you build a roadmap that aligns with your long-term vision.

Communicate with Clarity and Care

Exiting your business impacts more than just you—it affects employees, clients, investors, and family members. Having a communication plan in place shows respect, builds trust, and eases transitions. Be transparent, be empathetic, and keep the lines of communication open.

Expect the Unexpected

Markets shift. Life happens. That’s why your exit strategy needs flexibility. A plan that’s reviewed and refined regularly—with the help of trusted advisors—will give you the ability to adapt when circumstances change.

Surround Yourself with the Right Experts

You don’t need to navigate this journey alone. Assembling a team of advisors early on—your CPA, attorney, and financial advisor—ensures every detail is covered, from tax planning to deal negotiation. Their insights can help protect what you’ve built and position you for the best possible outcome.

Start Now—Even If You’re Years Away

Exit planning is about building a stronger business today. By investing in strategy, structure, and support now, you increase your options and your business’s value down the road.

Our Advisors are here to help you take that next step. Whether your transition is five years away or just a glimmer on the horizon, we’ll help you build a plan that reflects your goals and strengthens your business for the future.

Let’s start the conversation.