Ask most owners when they’ll sell and the answer is some version of “in a few years” or “when the time feels right”. The trouble is that the buyers you’ll attract and the price you’ll get are shaped by decisions made long before the time feels right. Exit planning isn’t about picking a date — it’s about making sure that when the date arrives, the business is worth the most it can be and you’re free to choose your terms.
1. Why earlier is almost always better
The things that lift a sale price — reducing owner-dependence, cleaning up the financials, building recurring revenue, showing a growth trend — all take time to appear in the record a buyer reviews. A buyer looks back over two to three years of trading. Fixes made in the final months look like last-minute polish; the same fixes made years out simply look like a well-run business.
“The best time to sell is when the business is performing well — not when you’re burnt out or forced to.”
2. Starting early doesn’t mean selling early
Preparing your business to sell is the same work as making it a better, more valuable, less stressful business to own right now. If you decide not to sell for another decade, you’ve spent that decade running a stronger company that depends on you less. Preparation keeps every door open: sell now, sell later, or hand it to family or staff.
3. Signals it’s time to start planning
Start when: you’ve begun thinking “how much longer do I want to do this?”; you’re within roughly five years of a target retirement or life change; the business still leans heavily on you for sales, decisions or key relationships; or you’ve had an unsolicited approach.
4. Work backwards from the life you want
Map backwards from your target exit date. 3+ years out: get a baseline valuation, set goals with an adviser, and start the big value levers. 2 years out: clean up financials, lock in recurring revenue, and confirm your tax structure. 1 year out: run your own due diligence and assemble your sale team. Go to market: list confidentially, negotiate, and plan your handover.
5. The one deadline you can’t make up later: tax
Most value levers can be pulled at any time — but some tax structures only work if they’ve been in place well before you sell. Eligibility for the small business CGT concessions, the way your business is owned, and how the sale is structured can all change your after-tax proceeds materially. These are decisions to make years out, not in the final negotiation.
6. Who to talk to first
An exit adviser is a good first call — they help you set goals, sequence the value-building work, and map the timeline backwards from the life you want, so nothing is left to the last minute.
Common questions
Two to three years is the sweet spot for most owners — long enough for the value levers and a growth trend to show in the numbers. If a sale is closer than that, start now: even a year of preparation helps.
Prepare anyway. The work makes the business stronger and less dependent on you regardless, and it keeps every option — selling, holding, or handing over — genuinely open.
An exit adviser is a good first call — they help you set goals and sequence the work.
This guide is general information only and does not take account of your personal circumstances. It is not financial, tax or legal advice. Speak to a qualified adviser before acting.