Selling Your Business Isn’t an Event — It’s a Process

Many business owners mistakenly believe they can decide to sell and find a buyer within months. The reality? Companies with a structured exit strategy sell for significantly higher multiples.

In fact, businesses that plan at least two years in advance sell for 20–30% more than those that don’t.

John, a successful entrepreneur, thought he could sell his company quickly. Two years later, after multiple failed deals, he realised that without a proper succession planning strategy, his valuation suffered. Don’t let this happen to you.

To maximise the value of your business, exit planning starts today—not when you’re ready to leave.

1. Know Your Number — The Financial Freedom Point

How much do you actually need post-sale to maintain your lifestyle? Most business owners overestimate their business value and underestimate their future financial needs.

✅ Calculate your Freedom Point—the amount you need from the sale to retire comfortably.

✅ Consider taxes, living expenses, and investment returns to determine a realistic figure.

✅ Speak with a financial planner to ensure you’re selling at the right number.

❌ The Risk of Ignoring This:75% of business owners run out of money within a decade of selling due to poor financial planning.

2. Build Transferable Business Value

Buyers don’t just buy revenue—they buy predictable, future profitability. If your business can’t run without you, it isn’t as valuable to a buyer.

✅ Strengthen intangible assets: customer relationships, brand reputation, and operational systems.

✅ Document key processes to make the transition smoother for a buyer.

✅ Shift customer relationships from owner-dependent to team-managed.

✅ Build a strong management team to ensure business continuity post-sale.

❌ The Risk of Ignoring This: Businesses where the owner is too involved sell for 30–40% less than those with a well-structured team.

3. Reduce Risk & Increase Predictability

The “5 Ds” — Death, Disability, Divorce, Disagreement, Distress — can all impact business value. Buyers pay a premium for businesses with lower risk and steady revenue.

✅ Secure long-term contracts with clients and suppliers.

✅ Diversify revenue streams to reduce dependency on a few key clients.

✅ Implement a leadership team that can run operations without you.

❌ The Risk of Ignoring This:50% of deals fall apart due to perceived instability and risk in the business.

4. Identify Your Ideal Buyer Profile

Not all buyers are created equal. Some may be willing to pay far more than others.

Types of Buyers:

• Financial Buyers: Private equity firms, investors looking for strong EBITDA performance.

• Strategic Buyers: Competitors, suppliers, or companies looking to enter your market.

• Inside Sales: Selling to employees or family members (often requires a structured buyout plan).

Position your business to attract the highest bidder by showcasing future growth potential.

❌ The Risk of Ignoring This: Businesses sold to strategic buyers often get a 30–50% higher value than those sold to financial buyers.

5. The Exit Team — Advisors You Can’t Afford to Skip

A great business sale requires expert guidance. Surround yourself with the right advisors:

✅ M&A Advisor: Helps find and negotiate with the right buyers.

✅ Tax Specialist: Reduces capital gains tax and maximises after-sale wealth.

✅ Wealth Planner: Ensures the proceeds from your sale align with your long-term financial goals.

❌ The Risk of Ignoring This: Owners who don’t use M&A advisors typically sell for 15–25% less than those who do.

6. The Power of Timing — Market Trends Matter

Market conditions play a huge role in business valuations. Selling in a downturn could cost you millions.

✅ Understand sector trends: Some industries command higher multiples at certain times.

✅ Monitor interest rates and buyer demand—both influence acquisition activity.

✅ Plan ahead: The best time to sell is when your business is thriving, not when you’re burnt out.

❌ The Risk of Ignoring This: Businesses sold in strong market conditions get 20–30% higher valuations compared to those sold during downturns.

7. Life After Exit — Planning Your Next Move

Did you know that 75% of owners regret selling their business within a year? Exiting your business isn’t just about the money—it’s about what comes next.

✅ Define your next chapter: Retirement, new ventures, philanthropy, or advisory roles.

✅ Make sure you don’t tie your identity solely to your business.

✅ Seek mentorship or advisory roles to stay engaged without the daily grind.

❌ The Risk of Ignoring This: Many business owners fall into post-exit depression because they failed to plan for life after the sale.

Final Thought: Take Action Now

The most successful exits don’t happen by accident—they’re planned. If you want to sell at a premium, now is the time to start preparing.

There are many types of exit strategies. The key to a successful business exit is choosing one that fits your goals, market conditions, and the potential buyers available.

👉 Make sure you’re in control of your exit—not the other way around.

Need Expert Guidance on Your Business Exit?

If you’re serious about maximising your exit, I can help. Book a strategy call today.