3 Signs It’s Time for a Business Exit Plan

If you’re a business owner, your company is more than a livelihood; it’s the product of years of hard work, dedication, and sacrifice. But every business owner reaches the point when it’s time to consider life after ownership.  Here are three signs it may be time to plan your business exit strategy:

1. You’re dreaming about what’s next.

If you’ve been wanting more time with family or dreaming about the next phase of your life, it may be time to take the steps toward selling your business. The sooner you start planning, the more flexibility and control you’ll have in ensuring your transition aligns with your personal and financial goals.

2. You’re thinking about succession and legacy.

Whether you plan to pass your company to family members, transition to employees, or sell to an outside buyer, your legacy matters. Many New England business owners want to protect their employees, preserve customer relationships, and ensure continuity for the community they serve. Exit planning provides the structure to balance financial goals with legacy considerations. 

3. The market conditions are right.

Many industries, including manufacturing, healthcare, and professional services, are experiencing strong buyer interest in New England. Favorable economic conditions and competitive demand can significantly increase your business’s valuation, enhancing the success of its sale. Even if you’re not ready to sell, understanding these cycles helps you choose the right time.

Important Considerations for Selling Your Business

If you are thinking about selling your business, here are two essential questions to ask yourself:

Can your business run without you? 

Many small and mid-sized businesses rely heavily on their owners for daily operations, customer relationships, and decision-making. While this commitment is admirable, it can reduce your business’s value when it’s time to sell. To enhance the value of your business, you will need to develop a strong management team, delegate responsibilities effectively, and regularly review and improve all business operations.

Are your financial records clean and organized?

One of the first things a prospective buyer will review is your company’s financial records. If your books aren’t clean, organized, and accurate, it could reduce the value of your business or stall the sale. Working with a business advisor to better organize your financial statements and reporting enhances the value of your business and strengthens buyer confidence.

Our Best Advice:  Plan Ahead 

We always tell our clients that a successful business exit strategy can take years to execute. Starting early allows you to:

• Increase your company’s valuation.

• Time your exit with market opportunities.

• Protect your legacy and employees.

• Ensure a smooth, stress-free transition.

  
  

Business Exit and Pre-sale Planning in New England

At Centerpoint Business Advisors, we help business owners across New England plan and execute successful business exits. Whether you’re thinking about selling your business, transferring ownership, or just exploring your options, our team provides the guidance you need every step of the way. Contact us today to schedule a complimentary consultation and discover the best path to selling your New England business.