Exit Planning

Preparing Your Business for the Future

You’ve spent your whole career nurturing your business. What happens next?

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Third-Party Transition

If you’re looking to get the most return possible out of your business, selling to a third party is your best bet. Things to think about: 

  • How does your company compare to other successful third-party sales in your industry?
  • Is your company ready to go to market?
    Are YOU ready to completely let go of your business?
  • Is your business worth what you think it is?
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Frequently Asked Questions

Exit Planning FAQs

Read answers to some of our frequently asked questions about the exit planning process.

Third-Party Transition FAQs

How far out should I start preparing to transition my business to a third party?

Each transition and business is unique. If your goal is to transition via third-party sale, then your runway before the sale should likely be fairly lengthy. We recommend a minimum of three years, ideally five-plus years to achieve an exit on your terms. 

How long does it take to transition a business?

Third-party sales can be incredibly time-consuming and intense. Done right, there are three primary phases of the project:

  1. Assessing the company and addressing areas that are decreasing value
  2. Preparing the business to list for sale. Once the items likely to decrease value are addressed, it’s time to actively market the business for sale. This can be an intense period as owners will need to select a broker, prepare CIMs and prepare for due diligence.
  3. Offering and negotiations. Once an offer is on the table, it can take months to negotiate the offer and agree to terms for closing.

How do I maximize my value when selling my business to a third party?

There are certainly many approaches to maximizing value. Are you looking to sell to a strategic buyer (competitor or private equity)? If so, benchmarking your company to the competition will be key. Further, reduce the risk of transferable value – all of which will help to increase the value of an eventual sale to a strategic buyer.

If you are considering a sale to someone other than a strategic buyer (think owner-operator selling to another owner-operator), finding ways to ensure the revenue stream is transferable to the new owner is imperative. 

Business Strategy Resources

Blue Value Advisors Blog

Browse our blogs for our expert advice on exit planning, business transitions, business valuation and more.

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Let’s Prepare Your Business for the Future

It’s never too early to start thinking about the future of your company — even if leaving it isn’t in the cards yet. Talk to a Blue Value Advisor today to find strategies that improve revenue, protect assets, and prepare you and your stakeholders for what’s ahead.