Beyond the Sale: Creating a Profitable Exit Strategy That Serves Your Next Chapter
Written by Sonia Gibson
As a successful business owner, you've worked hard to build something of value. But have you considered what happens when it’s time to step away?
Whether you plan to sell, pass the business to family, or transition to a new venture, your exit strategy is as important as your growth strategy. The key to a profitable exit? Planning early.
With statistics showing that 78% of business owners rely on their business sale to fund their next venture or retirement*, the question of how to create a financial transition that truly serves your next chapter has never been more important – and it isn’t just about selling at the highest price; it’s about ensuring a seamless transition that protects your wealth, your team, and your legacy.
Here’s how to do it right.
1. Start Planning Sooner Than You Think
Most business owners underestimate how long it takes to prepare a business for sale. Ideally, exit planning should begin three to five years in advance. Buyers seek stable financials, strong systems, and minimal owner dependency.
What You Can Do Now:
Assess Financial Performance: Conduct a detailed financial review to identify unnecessary expenses, areas where profit margins can be improved, and any inconsistencies in financial records. A clean, well-maintained financial history is attractive to buyers and can significantly impact valuation.
Document Key Processes: Develop clear standard operating procedures (SOPs) for all major aspects of your business, from customer acquisition to service delivery. Having well-documented workflows ensures business continuity and allows for a smoother handover.
Build a Strong Team: Invest in training and leadership development for key employees to enable operations to run without your constant involvement. A business that doesn’t rely solely on the owner is significantly more attractive to buyers.
2. Maximise Business Value Before Selling
Think of your business like a house: the better it looks and functions, the higher the price tag. The goal is to make your business irresistible to the right buyer.
Key Steps to Increase Business Value:
Boost Profitability: Identify and eliminate inefficiencies that drain profits, such as redundant processes, underperforming products or services, and excessive operational costs. Consider introducing new revenue streams that enhance scalability and profitability.
Reduce Risk: Diversify your client base so that the business isn’t overly reliant on one or two key customers. A more evenly distributed revenue stream reduces financial volatility and makes the business more stable and appealing to buyers.
Strengthen Brand and Reputation: Consistently deliver high-quality products or services, encourage satisfied customers to leave reviews, and actively engage in your industry community. A strong brand with a positive reputation increases buyer confidence.
Leverage Technology: Implement automated solutions for accounting, customer relationship management (CRM), and operational workflows to streamline processes. The more efficient your business is, the easier it will be for a new owner to step in and continue operations seamlessly.
3. Understand Your Buyer Options
Not all exit strategies are the same. Depending on your goals, you may choose to:
Sell to a Strategic Buyer: A competitor or larger company seeking expansion may see significant value in acquiring your business, especially if it complements its current offerings. This can lead to a higher sale price, but the transition may involve significant changes for your existing team.
Transition to a Family Member: If you plan to pass the business to a family member, it’s essential to formalise the process, including a clear succession plan, financial agreements, and any necessary training. Emotional dynamics can complicate this type of transition, so it’s best to approach it with structured planning.
Management Buyout: Selling to key employees can be a great option, as they already understand the business and can maintain continuity. However, it requires financial structuring, such as instalment payments or external financing, to make it feasible for the buying team.
Close and Liquidate: If the business isn’t sellable, maximising the value of assets - such as equipment, intellectual property, and client contracts - can still provide a strong financial outcome. Working with a business valuation expert can help determine the best approach.
4. Understand the Wealth Identity Shift
The number one challenge in transitioning from business ownership is the fundamental shift in how your wealth works for you. As a business owner, your wealth has been active - you've controlled its growth through daily decisions and direct influence. Post-sale, your relationship with wealth becomes more passive, dependent on investment returns and financial structures. As a result, you should look to develop your investor identity well before your business sale for maximum outcomes post-exit.
How to Prepare:
Pay Yourself a Market-Rate Salary: If you’ve been relying on irregular draws from the business, transition to a structured salary that reflects industry standards. This helps establish a realistic financial model for potential buyers.
Build your Advisory Dream Team Early: The success of your financial transition depends heavily on having the right professional support - who understand your financial goals and personal values. Your advisory team should include:
A financial planner who specialises in business exits and understands your industry
An accountant with specific experience in exit planning and Capital Gains Tax (CGT) minimisation
A legal advisor skilled in business sale transactions and wealth protection
Potentially, a business broker or a mergers and acquisitions specialist who understands your market
5. Plan for Life After Business
Selling your business isn’t just about money - it’s about what comes next. Do you want to start a new venture? Invest? Take a well-earned break? The transition from business owner to the next phase often creates an identity void that financial security alone cannot fill.
Some Things To Think About:
Determine Your Financial Needs for Post-Sale Life: Work with a financial planner to calculate how much money you need from the sale to sustain your desired lifestyle and long-term wealth-building goals.
Understand the Tax Implications: Seek professional tax advice to minimise capital gains tax and explore reinvestment opportunities that provide financial stability.
Explore Your Next Chapter: Financial planning for your next chapter must extend beyond numbers to include purpose planning. Take time to consider:
How will you redirect the energy and focus currently devoted to your business?
What impact do you want to have with your wealth and experience?
Which aspects of business ownership brought you the most satisfaction, and how can you recreate those in new contexts?
Final Thoughts
A profitable, stress-free business exit starts with early planning. By strengthening financials, optimising operations, and clarifying your personal and professional goals, you’ll not only increase the value of your business but also ensure a secure financial future beyond it.
If you're thinking about your business exit strategy, now is the time to start planning. A future on your terms begins with the decisions you make today – and that’s something that we can help with!
If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with our team one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and/or other advice as may be appropriate having regard to their particular circumstances.