Why Exit Planning Starts Years Before the Sale

The Exit Strategist: Your Monthly Guide to Successful Business Exits

Author

Michael Van Rooyen
January 17, 2025 • Estimated Reading Time: 3 minutes

Why Exit Planning Starts Years Before the Sale

Most business owners wait too long to start exit planning, missing critical opportunities to increase their business’s value and ensure a smooth transition. As their trusted advisor, you can guide them to prepare early and avoid costly mistakes.

Key Insights:

  1. Timing Matters: Starting 3–5 years before a planned exit allows time to optimise profitability, streamline operations, and reduce owner dependence.

  2. Value Drivers: Early planning improves key value drivers like documented processes, diversified revenue streams, and management independence.

  3. Maximising Outcomes: Businesses with proactive exit plans sell faster, at higher valuations, and with fewer complications.

How You Can Help:
By leveraging tools like the Exit Planning Checklist and the EXITmax System, you can help your clients build scalable, saleable, and transferable businesses.

Exit Planning Checklist

Help your clients assess their readiness for a successful business exit. This step-by-step checklist covers:

  • Financial readiness (valuations, financial records).

  • Operational independence (documented processes, management).

  • Risk preparedness (contingency planning for the “5 D’s”).

Equip your clients to take the first steps toward a profitable exit.

Download the Exit Planning Checklist

How Early Planning Helped a Business Owner Achieve a 40% Higher Sale Value

When a client approached their accountant about selling their business, they had no documented processes, high owner reliance, and minimal financial tracking. The accountant introduced them to the EXITmax™ System, starting with the Owner Independence Program and Rapid Value Growth Path.

Results:

  • Processes were documented within 6 months.

  • Profits grew by 25% in the first year.

  • The business sold 40% above the initial valuation.

This story highlights how early planning and collaboration can transform exit outcomes.

Help Your Clients Start Planning Today

The earlier business owners start planning, the better their results. Download the Exit Planning Checklist and schedule a call to learn how the EXITmax System can help you support your clients.

Business Exit Solutions

Empowering Accountants, Brokers, and Advisors to Support Successful Exits
[Visit Our Website] | [Contact Us]