Exit Smart - Prep Time

Exit Smart - 20 Golden Nuggets for SME Owners

Part 6. How Much Time is Enough for Exit Prep?

Rushing your exit can be a costly mistake. Many SME owners wait until they’re exhausted, burnt out, or facing a personal crisis before thinking about selling. By that time, their business might not be in the best shape to attract top buyers, or they might be in a weaker negotiating position.

How much time should you allocate for exit preparation? Ideally, you want at least three to five years. This window allows you to address operational inefficiencies, clean up financials, build a stronger management team, and implement strategies that can increase your business’s value. During this time, you can test potential successors or position the company to appeal to external buyers.

Without enough preparation time, you risk leaving money on the table or encountering unexpected obstacles during the sale process. Buyers can spot a rushed exit from a mile away, and they might use it to their advantage during negotiations.

Taking your time also helps reduce stress. A well-planned exit allows you to transition smoothly and ensures that the business is in good hands when you leave.

Golden Nugget -  A successful exit takes time—three to five years is ideal for optimising value, fixing weaknesses, and ensuring a smooth transition.