What's Your Exit Plan? Why Waiting Could Cost You Big
- Jayne McQuillan
- 38 minutes ago
- 4 min read
While speaking at a recent M&A conference, I was asked by a participant in my breakout session, “What’s YOUR exit plan?” Ha! Talk about being put on the spot!
As someone who helps business owners grow value and prepare for successful exits — personally, financially, and operationally — I am no different. I get caught up in running my business, too. Like many owners, I sometimes put my own planning on the back burner.
Exit Planning is Important — But Never Urgent (until it is)
Building a business that is ready for a future exit is one of the most important things you can do, but it rarely feels urgent.
Have you ever told yourself, “I need to plan for my exit, but I just don’t have time”? You’re busy handling customers, operations, employee issues — all the fires of the day. Then one day, it’s too late.
When is it Too Late to Start Your Exit Strategy?
Here are some real warning signs...and the painful consequences:
A health issue forces a fast exit
No successor is ready, and there is no exit plan in place
Business value drops, leading to a fire sale or closure of the business
Owner burnout with no backup plan
You have waited too long, and buyer interest is low
Less negotiating power and fewer exit options
Incomplete tax or legal planning
You rush the sale and pay more in taxes
You lose wealth you could have protected through estate planning strategies
No successor lined up or trained
Family or team is unprepared, forcing a sale to outsiders
Sale may be delayed, discounted, or cause conflict among stakeholders
Retirement comes sooner than expected
You are not ready — financially, personally, or operationally
You must work longer or accept a lower retirement lifestyle
Or in the most difficult scenario, an unexpected death, your family is left navigating grief and the stress of handling a business they may not be prepared to run or sell.
You Can Avoid Business Exit Pitfalls — If You Plan Ahead
Like many clients, I’ve had my own starts and stops in exit planning, from staffing changes to shifts in my role. But I know it is my responsibility to prepare my team, my business, and myself for a successful transition.
I want to exit on my terms. But I don’t have a crystal ball. Planning now means I’m protecting what I’ve built and preparing my team to succeed — even if something unexpected happens.
I once met a business owner in his 70s. He needed $3 million from the sale of his business to retire comfortably. But the business was only worth $1.5 million. His choice? Keep working to build value or settle for less. That’s a tough spot to be in, especially when it could have been avoided.
A success story: Compare that to another owner we worked with. He started planning about 2–3 years before retirement. At first, he wasn’t sure it would pay off. But with guidance and preparation, the business grew 330% in value, and cash flow increased by $1.2 million. When he goes to market, his ROI on investment in business value creation and exit planning will be over 5700%. That’s the power of starting early!
Why Don't More Business Owners Start Early?
Because many don’t know that:
Exit planning is a process, not a one-time event. It’s a process that should start 3-5 years before your desired transition (longer for family businesses).
Waiting limits your choices: buyers, terms, timing.
Value must be built, not assumed. It takes time to de-risk the business, professionalize operations, and enhance transferable value.
The best time to plan is before you're ready — not when you're forced to.
Take the First Step Toward a Successful Business Exit
Even one small step can put you on the path to building business value — and protecting your legacy. Planning today can ensure that your life’s work gives you the freedom, payoff, and peace of mind you deserve.
Let’s talk. Schedule a 30-minute exit readiness conversation today.
Exit Planning Case Study: CB&A
Charlene was eager to further position herself and her business to achieve her goal of exiting CB&A in 2-3 years. She wanted to empower and train next-level leaders to take over more tasks and drive results in preparation for the transition.
After 2.5 years of focusing on her Value Journey, Charlene achieved:
128% Increase in Business Value
65% Revenue growth
45% EBITDA growth
Business SOLD for a 6.5x multiple
Jayne McQuillan, CPA, MBA, Certified Exit Planning Advisor (CEPA) is the owner of Journey Consulting, LLC and author of The Value Journey: How to Drive Profits, Build Wealth, and Exit Your Business on Your Own Terms.
Our firm is focused on providing business owners and their businesses with strategic planning, exit planning, financial expertise, and organizational improvement. We use a holistic approach within all of our services by aligning leadership with business strategy and outcomes.