Exiting a business that you’ve poured your heart, soul, and time into is a huge milestone – one that can be as exhilarating as it is daunting. Whether you’re passing the torch to a successor, selling to investors, or closing operations, the stakes are high. When executed effectively, a business exit can serve as a springboard to your next chapter. However, a poorly managed exit can result in undue stress, financial challenges, or lasting regret. As a business exit advisor, we’ve seen the highs and lows of the process. In this article, we walk you through the most common pitfalls of exiting a business and how you can sidestep them to secure the legacy you’ve worked so hard to build.
Problem 1. Not Starting Early Enough
Many business owners delay exit planning until they’re ready to leave. This lack of foresight can limit options, reduce business value, or create rushed decisions.
The fix: Start planning your exit 1 – 5 years in advance. This timeframe allows you to optimise financials, strengthen operations, and position your business as an attractive opportunity. Even if you don’t plan to exit soon, having a plan gives you peace of mind.
Problem 2. Overlooking Business Valuation
Relying on assumptions about your business’s worth can result in unexpected surprises or missed opportunities to maximise its value.
The fix: Engage a professional to conduct a thorough valuation. A realistic understanding of your business’s worth ensures you negotiate confidently and identify areas to improve value before selling.
Problem 3. Forgetting to Prepare Your Business for Sale
Buyers or successors look for operational efficiency and a clear path to future growth. If your business relies too heavily on you or lacks clear systems, it may deter interest.
The fix: Develop a roadmap for a smooth transition. Document processes, build a strong management team, ensure a good spread of customers, and reduce dependence on you. Buyers want to see a business that can thrive without its owner.
Problem 4. Neglecting Tax and Legal Implications
A poorly structured deal or overlooked tax implications can erode the financial gains of your exit, and create future liabilities.
The fix: Work with specialist advisors and legal professionals to structure your exit wisely. From deal management to regulatory compliance, proactive planning avoids costly surprises.
Problem 5. Letting Emotions Take Over
Your business is personal. Emotional attachments can lead to overvaluing your company, resisting change, or holding onto unrealistic expectations.
The fix: Treat the exit like the business decision it is. Surround yourself with trusted advisors who offer objective perspectives. Keeping your emotions in check allows you to focus on achieving the best outcome.
Problem 6. Ignoring the Next Chapter
Without a clear post-exit plan, some business owners feel adrift or regretful after leaving.
The fix: Think beyond the sale. What excites you about the next stage? Whether it’s starting another venture, retiring, or giving back, having a vision for your future helps you exit with confidence.
How We Can Help
Exiting your business doesn’t have to be overwhelming. With thoughtful preparation, professional guidance, and a clear plan, you can avoid common mistakes and turn your business exit into a rewarding experience.
Ready to start planning your exit? Contact Partner Geoff Pinder by emailing g.pinder@themgroup.co.uk to find out more about our Business Exit Review and how we can help you take the first step.