Every great exit starts with a clear strategy. Yet too many business owners wait until it’s too late. That’s why having an exit readiness checklist is essential; it aligns your decisions with your desired outcome.
At Approach Advisors, we help owners plan with precision. From setting a timeline to choosing the right exit path, our process is designed to help you exit on your terms and protect what you’ve built.
Set Your Exit Timeline
Without a timeline, financial decisions lose focus. With one, they gain direction.
Use your checklist to:
- Decide whether your goal is 2, 5, or 10 years out
- Align investments and spending with exit timing
- Create milestones for readiness, leadership, and documentation
A defined timeline shapes every strategy that follows.
Define Your Target Valuation
You can’t hit what you can’t see. Knowing your target valuation guides every move you make.
Your checklist should include:
- Desired sale price or retirement goal
- Current valuation and gap analysis
- Key drivers to increase EBITDA and reduce risk
This clarity keeps your efforts focused and measurable.
Choose the Right Exit Path
Not all exits are the same. You need to know which one fits your goals, team, and tax plan.
Common paths include:
- Third-party sale for maximum payout
- Succession to a child or employee
- M&A with a competitor or partner group
- Shutdown with asset liquidation
Each path has different implications. Your checklist should outline pros, cons, and preparation steps for each.
Understand the Financial Tradeoffs
Your exit structure directly impacts your wealth. So the terms matter as much as the price.
Key considerations include:
- Will your deal involve an earnout based on future performance?
- Will you offer seller financing to support a succession?
- Will you need to manage capital gains or estate taxes?
These factors belong in your business exit documentation. And your advisor should walk you through them early.