Why an Exit Strategy Matters

Most founders don’t think about their exit until it’s too late. They work 24/7/365 for years, build something great, and then scramble when a buyer finally shows up. That’s when mistakes happen—overvaluing the business, walking into negotiations unprepared, or realizing too late that they have no real exit strategy. But here’s the thing: it’s never too late to start preparing. Even if you feel behind, even if you’ve made mistakes, even if you’re completely burned out, there’s still a path to exit. Start by thinking like a buyer. What makes your business valuable? How easy is it to take over? What risks would make someone walk away? The sooner you start answering these questions, the stronger your position when the right buyer comes along. And don’t go at it alone. The best exits happen when founders work with someone who’s been there before—someone who knows how to structure a deal, avoid common traps, and get you the best possible outcome. You don’t have to build the next billion-dollar company to have a life-changing exit. You just have to play the game right, execute, and position yourself for success.

Many people that work with Family Offices are surprised to learn how few famlies have a well-defined succession plan in place. The percentage is far lower than most would expect. While some have a basic outline or informal understanding, very few have a fully developed, structured plan that can adapt as circumstances evolve. Flexibility is critical because the assumptions that form the basis of a succession plan can change. Market conditions shift, economic realities evolve, and family dynamics transform over time. Without a plan that can respond to these changes, even the most carefully laid intentions can fall apart. On my recent podcast with Cory Bultinck, Partner at Wipfli, he stated that "only about 10% to 20% percent of organizations have a succession plan that they are actively executing." The majority are either unprepared or relying on vague concepts rather than actionable steps. Entrepreneurs often carry a vision of their exit strategy in their heads, perhaps imagining a straightforward sale for cash. In practice the process is more nuanced and involves careful consideration of leadership talent, complex financial structuring, tax implications, and estate planning strategies, all with the goal of preserving and maximizing value. A well-thought-out succession plan is more than a document. It is a living strategy that must align the business’s operational needs with the owner’s long-term financial and legacy objectives, while ensuring the next generation or successor leadership has the tools and support to succeed. Without it, owners risk losing significant value, creating family conflict, and leaving a legacy of uncertainty rather than stability.

If someone offered to buy your business tomorrow, would you be ready? Not "we have good numbers" ready. Not "sure, we're profitable" ready. Ready ready. Like hand over the keys and leave without everything falling apart. Founders build for years focused on growth. Then someone wants to buy their company and they scramble to get everything ready for exit. Trying to clean up messy books. Figuring out what their real churn rate is. Realizing they can't prove the business runs without them. And by then it's usually too late. Because you can't fix years of messy data and founder dependency in a few weeks of due diligence. The buyer realizes they're not buying a business, they're buying the founder's job. Which is why you need an exit plan even before you plan to exit. Even more if you never plan to, because building like someone might buy you forces you to build systematically instead of reactively. 𝗔 𝗴𝗼𝗼𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗼 𝘀𝗲𝗹𝗹 𝗶𝘀 𝗮 𝗴𝗼𝗼𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗼 𝗿𝘂𝗻. The same things that make a buyer confident are the things that make your life easier. Clean financials you can trust. Predictable revenue that doesn't depend on your daily hustle. Teams that solve problems without waiting for you to tell them what to do. We put together a simple cheat sheet that breaks down what "exit ready" actually looks like. Whether you sell or not, it's a good test of whether you built a business or bought yourself a job. Ready to start exit planning? Comment "EXIT" below. I'll send you the complete Annual Exit Planning Workbook from Big Band Software - the same 24-page resource that Kevin McArdle (who's acquired 50+ SaaS companies) uses to help founders prepare for strategic exits. P.S. 📬 We covered this in our newsletter last week. If you like our frameworks, it's worth subscribing to get them first next time >> https://t2m.io/TheSummit #saas #strategy #entrepreneurship 

𝐄𝐱𝐢𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠: 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐅𝐢𝐧𝐚𝐥 𝐌𝐨𝐯𝐞 Every founder exits. The only question is—on your terms or someone else’s? This guide dives into how to plan, structure, and optimize your company’s exit—whether you’re targeting acquisition, succession, or private equity. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: 1️⃣ Begin with the End in Mind Start exit planning 3–5 years before the transaction. Timing drives valuation, taxes, and deal structure. 2️⃣ Know Your Exit Options From internal succession to third-party sale or ESOP—each path has tradeoffs in control, legacy, and liquidity. 3️⃣ Clean Up the House Buyers discount messy cap tables, weak governance, or personal expenses running through the business. 4️⃣ Get a Valuation Benchmark Early Don’t wait for an offer to learn what your company is worth. Use comps, EBITDA multiples, and market trends. 5️⃣ Assemble Your Exit Team You’ll need M&A advisors, tax strategists, and legal experts—long before LOI. 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞: Exits don’t just happen—they’re engineered. Founders who plan early exit richer, cleaner, and with fewer regrets. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/eQFrsUnE