Starting and growing a business requires determination but preparing to sell it can be just as demanding. Whether you’re planning retirement, pursuing new opportunities, or responding to market interest, a well-designed exit strategy protects the value you’ve built and ensures the best possible outcome.
Strategic exit planning helps you stay in control, avoid common pitfalls and maximise the final sale price.
- Why are you selling?
Buyers will always ask: “Why are you selling?” Being clear about your motivation helps set expectations, guides negotiations and strengthens trust.
Consider:
- Are you ready to exit, or willing to stay on during a transition?
- What outcome do you want—immediate sale, long-term earn-out, or partial exit?
Clarity around your “why” keeps you focused and aligned with your advisers throughout the sale process.
- Engage Specialist Advisers Early
Selling a business is rarely a solo exercise. Most owners only sell once in their lifetime, so experienced advisers are essential. Your team should include:
- M&A advisers or brokers
- Accountants
- Tax specialists
- Lawyers
These advisers help refine your sale structure, prepare financials, assess market value, manage due diligence and negotiate terms—reducing risk and improving results.
- Explore All Buyer Options
The first offer is rarely the best one. Professional advisers can identify and approach a wide range of potential acquirers, including:
- International buyers
- Private equity or institutional investors
- Competitors or strategic buyers
- Management teams or long-term employees
Better-aligned buyers often pay higher prices due to synergies or strategic advantages. Keep your long-term goals in mind when assessing offers.
- Get Organised and Document Everything
Due diligence is one of the most time-consuming parts of a sale. Buyers expect complete, accurate and timely information covering at least:
- Three years of financial statements
- Contracts and agreements
- Leases
- Employee information
- Asset registers
- Forecasts, business plans and process documentation
Being “deal ready” significantly increases buyer confidence, reduces perceived risk and can meaningfully improve valuation.
- Separate Personal and Business Expenses
Business value is often based on a multiple of earnings. If personal or non-core expenses run through the business, they can distort earnings and reduce valuation.
To maximise sale price:
- Remove non-business expenses
- Clearly document historical adjustments
- Maintain clean, accurate financial records
This transparency strengthens buyer trust and supports higher valuation multiples.
- Understand the Tax Implications
Many sales are delayed because owners don’t fully understand the tax consequences of their business structure. Consult a tax adviser early to determine:
- Capital gains tax impact
- Eligibility for small business CGT concessions
- Optimal entity structure
- Tax-effective sale strategies (e.g., share sale vs. asset sale)
Proper tax planning can significantly increase your net proceeds.
- Stay Focused on Business Performance
Declining performance during a sale process is one of the biggest value killers. Buyers pay for future earnings, so keep the business running at full strength.
This may mean:
- Strengthening management capabilities
- Delegating responsibilities across teams
- Ensuring key staff can assist with due diligence without affecting operations
- Maintaining confidentiality protocols
Stable performance leads to stronger offers and smoother negotiations.
- Manage Capital Expenditure Strategically
Before investing in new equipment or upgrades, consider:
- Will it improve efficiency and profitability?
- Will buyers recognise the added value?
- Is there a risk of overcapitalising?
Ensure your assets are well-maintained and aligned with industry standards but avoid unnecessary spending that won’t increase sale value.
- Reduce Perceived Risk for Buyers
Buyers ultimately pay for the future earning potential of your business. Reduce their perceived risk by providing:
- A credible, well-supported strategic plan
- Forecasts based on realistic assumptions
- A strong history of financial performance
- A clear growth story
Businesses demonstrating sustainable growth opportunities typically command higher valuations and more interest.
- Consider a Staged Exit
Not all exits require selling 100% upfront. Many buyers prefer staged exits because they:
- Preserve customer and staff relationships
- Allow knowledge transfer
- Reduce risks for both parties
For sellers, staged exits can:
- Provide immediate capital
- Allow continued participation in future growth
- Reduce daily responsibility while retaining some ownership value
This approach can balance financial return with lifestyle goals.
Conclusion: Prepare Early to Maximise Your Business Sale
Selling your business is one of the most important financial decisions you’ll ever make. By preparing early, understanding your motivations, getting your documentation in order and surrounding yourself with experienced advisers, you dramatically improve your chance of a smooth, profitable exit.
A well-structured plan not only reduces risk but also helps unlock the full value of what you’ve built ensuring your next chapter starts on the strongest possible footing.
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