Planning a business exit? Prioritize preparedness over potential buyers

This is Part One of the series, “Sell your business tomorrow,” which is designed to guide leaders through the critical steps required to exit their business successfully on their own terms. From building a scalable business and preparing for due diligence to understanding legal structures and optimizing tax outcomes, each installment provides practical insights and actionable strategies to ensure a smooth, profitable, and strategic exit.

Exiting a business is never as straightforward as many founders hope it will be. The dream of selling your company for top dollar is often clouded by the harsh reality that a significant number of businesses listed for sale simply don’t sell. 

This fact alone should prompt every founder to rethink their strategy long before the decision to exit is made.

If you’re not already prepared for an exit, the chances of achieving a successful sale are slim, regardless of the market conditions or the interest in your industry. It’s not about finding the right buyer; it’s about ensuring that your business is ready for sale on its own terms.

No matter where our clients are in their founders’ journey, we always advise them to run their business like they’re going to sell it tomorrow. 

This goes beyond having your financials in order. It’s about building a business that’s attractive to buyers long before you ever consider listing it (even if you don’t think you’ll ever consider listing it!).

A successful business is sellable because it can operate independently of its founder. It should have a strong leadership team in place, efficient processes, and scalable systems. Ensure that you have a decision-making framework that is structured in such a way that all paths do not lead back to or through the founder.

A company that relies heavily on the founder or just a few key individuals will struggle to attract serious buyers. 

Investors and buyers want to see a business that can run smoothly without the day-to-day involvement of its founder. They’re not just buying a product or service, they’re buying a long-term asset.

This approach not only increases the likelihood of selling, but it also significantly boosts the sale price. 

When a business is established to operate independently of its founder, it signals to buyers that the company possesses sustainable value. More importantly, it shows that the business is built on solid foundations that will remain intact long after the founder exits.

This kind of foresight also provides the clarity needed to engage in serious discussions with potential buyers. It shows you’re not desperate to sell and that you’ve thought through the process thoroughly.

This mindset creates leverage during negotiations, as well as the confidence needed to secure a deal at a price that accurately reflects the true value of your company.

As a founder or owner, your goal shouldn’t be singularly focused on getting out; it should be to exit on your own terms. 

By focusing on preparing your business for the future, ensuring it can thrive without your daily input, and fostering a culture of independence and resilience, you position yourself to achieve the success you deserve.

Exiting a business is a process that requires time, foresight, and, most importantly, thorough preparation. Only then can you turn what could be a risky venture into a strategically executed win.