When is the Right Time to Start Business Exit Planning? The Short answer is: sooner than you think.
Many business owners focus heavily on growth, operations, and profitability, but delay one of the most important decisions they’ll ever make: how and when to exit their businesses. Exit planning is not something to leave until you’re ready to sell. The most successful business sales or transitions happen when the owner begins preparing years in advance.
Whether you want to sell, pass your company on to a family member, or merge with a strategic partner, business exit planning is essential to achieving the best outcome, both financially and personally.
Without a plan, owners often face:
With a well-designed exit plan, however, you gain:
If you’re asking the question, it’s likely time to start.
Generally, you should initiate business exit planning 2 to 5 years before your ideal exit date. But even if your timeline is longer — or uncertain — starting early gives you flexibility and power.
Here’s why early planning matters:
Maximize Business Value
The factors that drive value — such as recurring revenue, strong financials, scalable systems, and a reliable management team — take time to develop. You may also uncover risks or weaknesses that need to be addressed well in advance of a sale.
Understand Your Exit Options
Do you want to sell to a third party? Transfer your business to a family member or key employee? Exit planning helps clarify the best fit based on your goals, business type, and market conditions.
Attract the Right Buyers
Qualified buyers seek organized and well-run businesses. A proactive plan makes your business more attractive and improves the chances of a successful sale at a premium price.
Protect Yourself from the Unexpected
Life happens. Personal or market changes can suddenly accelerate your timeline. Exit planning puts you in a position to move forward on your terms, not out of urgency.
A strong business exit plan is more than just picking a sale date. It’s a step-by-step strategy that aligns your business goals with your financial objectives. Key components include:
When done well, business exit planning improves your business in the near term. The process often uncovers inefficiencies, opportunities, and untapped value. In many cases, owners who begin planning early find themselves reinvigorated and more intentional about building a company that is sellable.
Even if you’re not ready to exit for years, starting the process now gives you more options, leverage, and confidence.
At Murphy Business, we help business owners like you develop clear, customized exit strategies that increase value, reduce stress, and prepare you for a successful transition — whenever the time is right.
Curious about your business’s current value or where to begin? Download our “9 Steps to Prepare Your Business to Sell” guide to business exits or start a confidential conversation with a Murphy Business broker near you. It’s never too early to start planning for your future.
How do I know what my business is worth?
A professional business valuation considers your financials, industry trends, assets, and market comparables. It’s the first step in knowing where you stand and how to increase value before you sell.
When should I start planning my exit?
Ideally, 2–5 years before you intend to exit. But even if your timeline is longer or uncertain, starting early gives you more flexibility and control over the outcome.
Do I need to be prepared to sell to start exit planning?
Not at all. Exit planning is about preparing your business to thrive in your absence, whether or not you’re ready to sell today. You’ll build a stronger, more valuable company in the process.
What if I’m not sure how I want to exit — sell, transfer, or something else?
A strategic exit plan helps you explore all your options and align them with your personal goals. You don’t need to decide right away, but you do need to prepare.
How long does it take to sell a business?
On average, 6 to 12 months — but it depends on the business type, industry, and market conditions. Planning helps speed up the process and improve your results.
What resources do you offer to help me get started?
Download our free exit planning guide to learn the key steps and start building your exit strategy today.