By Chris Spratling
Planning a successful business exit requires foresight, strategy, and the right support. Chris Spratling emphasizes that too many entrepreneurs leave this critical step too late, risking value and legacy. His insights highlight why early preparation leads to stronger outcomes, smoother transitions, and greater confidence when it’s time to move on.
For many entrepreneurs, selling their business is the culmination of years – sometimes decades – of hard work, ambition, and resilience. Yet, despite the significance of the transaction, the majority of business owners remain unprepared for their exit. This lack of planning not only jeopardises the final sale value, but often leads to regret.
According to research more than 50% of business owners are dissatisfied with the result of their business sale, and a staggering 75% regret the decision altogether—primarily because of the financial outcome (Prince & Bowen, 2017; De Pau, 2024). With only 20% of businesses listed for sale actually selling within a year and 65% never selling at all, it’s clear that failing to plan means planning to fail (BizBuySell Insight Report).
Why Exiting Requires Planning
Too many business owners fall into the trap of treating a business exit as a financial transaction alone. But the sale of a business is far more than a spreadsheet exercise – it’s a personal, emotional, and strategic journey.
Typically we see four core motivations behind selling: financial security, lifestyle change, market shifts, and personal fulfilment. Understanding your ‘why’ for selling is crucial because it guides everything that follows: the type of buyer you seek, the timing, the price, and even your life post-sale.
Worryingly, 48% of business owners have no exit plan, and 58% have never had their company formally valued (Wilson, 2018; Hannon, 2018). This makes it almost impossible to assess whether your business can support your post-exit lifestyle.
The Hidden Risk of Delay
Imagine selling your house without fixing a leaky roof or updating the kitchen – buyers would either walk away or lowball you. The same principle applies in business. Without addressing the underlying factors that drive business value, you risk selling at a deep discount – or not at all.
Having helped hundreds of entrepreneurs scale and successfully exit their businesses, I’m of the opinion that maximum value is achieved by focusing on ten key drivers of business value, including strong financial growth, recurring revenue, low dependency on key staff or customers, and protected intellectual property. The more of these drivers your business can demonstrate, the more attractive it is to potential acquirers.
Getting these areas right doesn’t happen overnight. Preparing your business for sale can take anywhere from one to three years. But with a strategic plan in place, you maximise not just your exit valuation, but also the choice of buyers and the terms of the deal.
The Power of a Strong Deal Team
While many business owners lean on their accountant or solicitor to manage the sale, I equally regularly caution clients against such a narrow approach. A successful exit requires a well-rounded deal team: a corporate finance expert or broker, a commercial lawyer with M&A experience, a tax specialist, and a wealth manager.
Each professional plays a crucial role:
- The broker markets your business and negotiates with buyers.
- The lawyer ensures the legal protections and structures are watertight.
- The tax advisor helps optimise your post-sale income.
- The wealth manager prepares you for life after the sale.
This team becomes your personal advisory board through the entire sale process – protecting your interests and ensuring the transaction runs smoothly.
What Buyers Really Want
Different buyers – be they individual entrepreneurs, strategic acquirers, private equity firms, or family offices – look for different things. However, all buyers want a business that is well-run, not overly reliant on its founder, and capable of delivering consistent returns.
Many business owners underestimate how closely buyers will scrutinise operational risk. If your business depends heavily on a handful of customers, a key member of staff, or even you personally, expect that to impact your valuation. Similarly, if your financial reporting is unclear or incomplete, buyers will either walk away or reduce their offer significantly.
Planning ahead means identifying and addressing these risks before going to market – not during due diligence, when your bargaining power is diminished.
Timing Is Everything
As the phrase goes ….. “You can only sell your company once, so getting it right from the ‘get go’ is essential.” Most transactions will go through five distinct phases to a sale, which includes preparing the business, marketing it to the right buyers, negotiating offers, handling legal agreements, and managing the transition.
Importantly, the sale process itself can take 12–24 months, depending on market conditions, buyer appetite, and how well prepared your business is. Starting early gives you options. Waiting too long – or waiting until you’re burned out – can lead to poor outcomes or missed opportunities.
Your Exit Should Reflect Your Legacy
For many founders, their business is more than just a source of income—it’s their identity. Over many years I’ve seen first-hand just how quickly failing to plan can destroy the legacy you’ve spent years building. If you care about how your staff, customers, and reputation are treated after the sale, you need to factor that into the kind of buyer you choose and the deal you accept.
This means going beyond price. Consider what terms you’re willing to accept around handover periods, management continuity, or brand preservation. These softer elements are just as important in creating a successful and satisfying exit.
Start Now
If there’s one key takeaway from my book The Exit Roadmap, it’s this: start early. Planning your business exit well in advance gives you the clarity, confidence, and control to make decisions on your terms.
Whether your goal is to retire, fund a new business, or simply spend more time doing what you love, a successful exit starts years before you sell. Understand what you want, prepare your business accordingly, build the right team – and don’t wait until you’re ready to walk away. The best exits are not reactive; they’re strategic.
Chris Spratling
