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How to Prepare for an Exit Strategy: Tips for Business Owners

A strong exit strategy is key to successful business succession planning. Whether you're selling or transitioning leadership, understanding your options, preparing financials, and engaging with corporate advisors can ensure a smooth and profitable exit from your business.


Planning an effective exit strategy is crucial for business owners aiming to transition out of their companies. A well-structured plan ensures a smooth transition, maximizes value, and secures the future of the business.

Key Steps to Prepare for an Exit Strategy

  1. Set Clear Objectives: Define your personal and financial goals for the exit. Understanding what you aim to achieve will guide the planning process.

  2. Assess Business Value: Evaluate your business's worth to identify areas for improvement and to set realistic expectations for the sale or transition.

  3. Explore Exit Options: Consider various exit strategies, such as selling to a third party, management buyout, or passing the business to family members. Each option has distinct advantages and challenges.

  4. Prepare Financials: Ensure your financial records are accurate and up-to-date. Transparent financials are essential for attracting potential buyers and facilitating a smooth transition.

  5. Develop a Transition Plan: Create a comprehensive plan outlining the steps for transferring ownership and responsibilities. This plan should address operational continuity and employee retention.

  6. Engage Professional Advisors: Consult with financial advisors, legal experts, and business brokers to navigate the complexities of the exit process. Their expertise can help optimize the outcome.


Preparing for an exit requires careful planning and strategic decision-making. By setting clear goals, assessing your business's value, exploring exit options, preparing financials, developing a transition plan, and engaging professional advisors, you can ensure a successful and profitable exit from your business.


If you would like to enquire about exit strategies and succession planning, book a complimentary consultation with DGMS Group.


  1. Forbes. (2023). 6 Actionable Steps For Preparing Your Exit Strategy. Retrieved from https://www.forbes.com/councils/forbesbusinesscouncil/2023/11/02/6-actionable-steps-for-preparing-your-exit-strategy/

  2. U.S. Chamber of Commerce. (2020). How to Develop an Exit Plan for Your Business. Retrieved from https://www.uschamber.com/co/start/strategy/business-exit-plan

  3. Ansarada. (2021). 8 Business Exit Strategies - How to Choose Your Strategy. Retrieved from https://www.ansarada.com/business-exits/strategies

  4. Xero. (2021). Your Business Exit Strategy In 9 Steps. Retrieved from https://www.xero.com/us/guides/small-business-exit-strategy/

  5. Business.com. (2021). Business Exit Strategy Planning: How to Prepare for an Exit. Retrieved from https://www.business.com/articles/business-exit-strategy/

  6. Investopedia. (2011). Business Exit Strategy: Definition, Examples, Best Types. Retrieved from https://www.investopedia.com/terms/b/business-exit-strategy.asp


 
 
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