Business Exit Planning: Can Your Business Be Sold or Transitioned to New Management?
It’s a question many business owners quietly worry about yet rarely make time to consider. When you’re busy running the day-to-day, the idea of stepping back — or stepping out — often gets pushed to “someday.”
But if you’ve ever wondered whether your business could be successfully sold or transitioned to someone else, this real client’s story offers both reassurance and a practical blueprint for making it happen.
A Real-World Success Story
We recently worked with the owner of a long-standing B2C service business. After nearly 30 years at the helm, he was ready to retire. He had a rough idea of what his business might be worth, but no formal valuation — and no exit plan.
At the same time, he’d just launched a promising new division with significant growth potential.
However, like many small and mid-sized businesses, he had no budgets, no KPIs, and no structured analysis of past performance. That’s where we came in — to help him prepare for a successful exit and maximise the value of his business.
How We Prepared the Business for Sale
1. Establishing the Business’s True Value
We began by analysing past financial performance, building realistic budgets, and setting measurable targets. Monthly reviews allowed us to course-correct quickly and improve operational performance.
Alongside this, we prepared the documentation buyers expect: financials, growth forecasts, and market insights.
2. Finding the Right Buyer
Not all buyers value a business the same way. In this case, industry research showed that similar businesses were valued using a multiple of profit.
With $500,000 profit and a typical multiple of 2, the valuation would sit around $1 million.
But with the new division’s growth potential, we believed the business could achieve a higher multiple. We targeted a public company with a track record of paying premium prices for high-growth acquisitions.
3. Increasing Profitability and the Multiple
We worked closely with the owner to both strengthen performance and improve the business’s perceived value:
- Refining the service mix to focus on higher-margin work
- Improving operational efficiencies
- Highlighting the untapped potential of the new division
This combination allowed us to reposition the business as a strategic asset, not just a steady operator.
4. Structuring the Deal
Once buyer interest was secured, we helped the owner prepare a compelling, well-documented pitch.
We guided him through negotiations and the development of the Heads of Agreement — critical when dealing with a sophisticated corporate buyer.
The Result: A Sale Price 50% Higher Than Expected
Through strong positioning and structured preparation, the business sold for 50% more than the owner originally expected.
He later acknowledged that he simply wouldn’t have known how to build a compelling financial and strategic case — yet that case was exactly what convinced the buyer to pay a higher multiple.
What This Means for Your Business
1. Profitability + Higher Multiple = Higher Sale Price
Small improvements can have a big impact when both profit and valuation multiples increase.
2. Growth Potential Drives Buyer Interest
If you have emerging opportunities — even early-stage ones — buyers will pay more if the growth story is clear and credible.
3. Expert Guidance Matters
Selling a business involves valuation expertise, negotiation skills, and strategic storytelling. Professional guidance can dramatically shift the outcome.
4. Plan Well in Advance
Ideally, give yourself at least two years to prepare. The earlier you start, the more value you can build — and the more choices you have.
Final Thoughts
If you’ve ever wondered whether someone else could successfully run your business — or whether you could one day sell it — the answer is yes.
But achieving the best possible outcome requires preparation, clarity, and the right strategy.
The most important step is simply to start.
Discover what really impacts the value of your business by contacting us today.
