Selling your business is one of the most important decisions you’ll ever make. It takes time to make it happen and do it right.
Which is why working to a definitive exit timeline is mission critical for every owner.
At AcquisitionHub we’ve assessed over 100 companies since July last year. Pretty much all of these businesses would benefit from preparing for their exit much earlier. The takeaway?
Starting early puts you in control of the process; you have more options and position your business for a more ideal exit outcome.
Why Starting Early Matters
Starting the exit planning process isn’t about listing your business for sale. It’s about working to your ideal exit date. Of course you can’t always choose when the right buyer appears but that’s why early planning is so important.
Planning a few years out gives you time to:
- Have the right conversations with partners and family and align expectations
- Strengthen and de-risk the business so it attracts buyers
- Build a personal wealth plan around your future payout
- Engage the right M&A advisor before you're under pressure
- Avoid feeling rushed in making such a big financial decision
Below we’ve put together a timeline broken into stages
Understanding this will help you move forward with clarity.
Exit In Mind
Start learning about the M&A Process
Thinking about a Future Sale
3-5 Years Out
Exit Planning
Internal & Personal Conversations
Personal Wealth Planning
Clean Financials
3 Years Out
Exit Preparation
Hire an M&A Advisor
Get a Valuation
Quality of Earnings
15-18 Months Out
Exit Launch
Building a Buyers List
Distributing High Level Information to Buyers
Initial Conversations with Buyers
9-12 Months Out
Executed LOI
Execute an LOI with a Single Buyer
Engage in Due Diligence Process
3-6 Months Out
Close the Deal
Get through Due Diligence
Formalise a Purchase Agreement, the Integration Plan and Get Cash at Close.
1-3 Months Out
Don’t Wing It – Work the Plan
Most owners underestimate how long a decent exit takes. That’s why 80% of businesses on the market never sell. With the right timeline and strategy you won’t be one of them.
How close are you to a successful exit?
Take our free Exit Value Scorecard and get a readiness report in just 5 minutes.