Exit Index

For owners planning to sell, hand over or step back

Analysis

Five years out: why the best exits start early

Buyers pay for businesses that run without their owners. That takes years to build, not months.

By Exit Index ·


Most owners start thinking seriously about a sale when they are tired, unwell or approached by a buyer. By then, the things that move the price have little time to change.

What buyers look at first

A buyer is paying for future profit. Anything that makes that profit less certain, such as one large customer, a founder who holds every relationship or accounts that need explaining, reduces what they will pay or moves money into deferred consideration.

What five years buys you

Five years is long enough to build a management team, spread revenue across more customers and produce several years of clean, consistent accounts. Those are the changes that are hardest to fake in a due diligence process.

The owners who get the best outcome usually decided to sell long before they told anyone.

Where to start

Begin with an honest picture of where the business stands today. Our readiness quiz is a quick way to see which areas need the most work.

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