Not all entrepreneurs aspire to run their businesses long term. While starting and running a business can be a rewarding experience, exiting enables founders to pursue other opportunities while new leaders continue the mission and drive sustainable growth.
However, exiting a business is rarely easy. In addition to exposing the organization to risks and difficulties, a good number of sales often fall through. To help increase the chances of a sale, 20 Forbes Business Council members share tips to help leaders ensure a successful business exit, as well as why these strategies are effective.
1. Think About The End First
Start thinking about your exit plan before you ever begin. Who would buy it or invest in it, and why? What will you need to do to make yourself obsolete so the business runs without you? How will the business be valued? What non-tangible value would it have? Have you built IP assets around what you have created so it could be scaled with investors? What will you do after you exit? – Jennifer C. Wolfe, Esq., APR, Whisper Creek Spa
2. Document Everything
Document what makes the business run. This means thinking about not just finances but also key processes, platforms, and institutional knowledge. A well-organized, transferable knowledge base builds buyer confidence, shortens due diligence, and ensures continuity. You’re not just selling revenue; you’re selling clarity and transparency. – Abby Clobridge, FireOak Strategies, LLC
3. Develop Detailed Customer Contracts
As M&A counsel on more than 50 transactions, I appreciate that well-crafted customer contracts motivate buyers. The structure of the contracts can necessarily dictate financial metrics. For example, whether revenue can be recognized, whether payments will be ongoing, and whether the customer can exit the relationship and continue operating the underlying service without the vendor is critical information. – Shari Pire, Plume Design, Inc.
4. Ensure The Business Can Run Without You
Build the business to run without you before you sell it. If everything depends on you, buyers see risk. A manager-run model with systems, recurring revenue, and clean financials makes the business more transferable and valuable. Exit-ready businesses are built, not found, so systematize everything! In general, buyers are not looking for a new job. – Greg Mohr, Franchise Maven
5. Understand The Valuation Process
One of the biggest reasons why a deal fails is the seller fails to understand valuation. Too often, emotion gets in the way. Valuation is not only about EBITA. Factors like continued scalability, ease of transfer, and the stability of the work force also contribute. Make sure the time is taken to truly get the buyer and seller on the same page for valuation. – Bryon Hough, Children’s Activity Management
6. Do Your Due Diligence On Potential Buyers
Do your homework on who’s buying and why. Are they strategic buyers looking for synergies or financial buyers chasing cash flow? I tailored my pitch to a buyer who wanted our tech stack to complement their product line, and it sealed the deal. Understanding their goals lets you position your business as the perfect fit, making them more likely to pay a premium and close the deal. – Ran Ronen, Equally AI
7. Form Relationships With Acquirers
Build relationships with strategic acquirers early. Connect with decision-makers in product or sales and show how your business aligns with their goals. When it’s time to sell, you won’t need to introduce yourself, as you’ll already have internal advocates who can push the deal forward. – Zain Jaffer, Zain Ventures
8. Fully Understand Your Target Buyers
To sell your business successfully, understand your target buyers and what they value. Set a realistic price based on comparables. Work with an experienced broker or M&A advisor. Keep financials and documents clean, organized, and ready for due diligence to build trust and avoid delays. – Marco Scanu, Visa Business Plans
9. Prepare For A Sale Years In Advance
One key tip for a successful business exit is to prepare a comprehensive exit plan ideally two to three years before the intended sale. This plan should include optimizing financial records, streamlining operations, and building a strong management team. This increases the business’s attractiveness to buyers by demonstrating stability, scalability, and clear financial performance. – Veena Jetti, Vive Funds
10. Invest In The Entire Team’s Development
A clean exit depends on whether your team can run the business without you. Cross-train staff, delegate decision making early, and build a leadership layer that doesn’t need hand-holding. If everything still flows when you step back, you haven’t just built a business; you’ve built an asset someone will want to buy. – Braden Yuill, Virtual Coworker
11. Articulate Your Value Proposition
Get your positioning and pipeline right well before you’re ready to sell. Many businesses don’t sell because buyers can’t clearly see the value or future potential. Your marketing should clearly articulate a unique proposition and speak to your ideal customers. A strong brand and consistent pipeline show buyers there’s demand and headroom for growth. That makes a business genuinely sellable. – Henry McIntosh, Twenty One Twelve Marketing
12. Systemize Everything
Start building your exit strategy years before you need it. My top tip is to systematize everything, from operations to onboarding. A business that runs without you is far more attractive to buyers, as it signals stability, scalability, and lowers perceived risk. Buyers don’t just want revenue—they want repeatability. – Adam Povlitz, Anago Cleaning Systems
13. Institutionalize The Business
Buyers may fear a decline in the business’s value due to the potential stress caused by the departure of such a person. If you consider an exit, make sure to institutionalize your business. Implement procedures and processes, best management practices, and delegate authority. Demonstrate to the buyers that you’re not just selling a business but an institutionalized organization free from key-person risks. – Anton Alikov, Arctic Ventures
14. Build A Turnkey Business
Start exit planning years in advance by building detailed SOPs and removing key-person dependencies. A turnkey business is far more attractive to buyers and fetches better multiples, while poor documentation or reliance on the founder often kills deals. Prioritize clean financials and audited statements early. Buyers scrutinize every dollar, and messy books can derail a deal. – Michael Freitag, CRITCH
15. Maintain Updated Finances And Documents
To ensure a successful business exit, keep your financials, SOPs, and contracts complete, accurate, and up-to-date. Conduct thorough, timely market research considering local, regional, and global scenarios. Only plan and discuss exit when backed by solid data, research, and reports. This approach builds trust and increases the chance of a smooth, profitable sale. – Kushal Chordia, VaaS – Visibility as a Service
16. Showcase The Business’s Maximized Value
Ensure that you can show a prospective buyer maximized value in the business when planning a successful exit. By cutting unnecessary expenses, optimizing recurring revenue, auditing your books to ensure they are organized and clean, and documenting growth trajectory, you’ll be able to provide proof of profitability, consistent growth, and positive cash flow. – Melissa Johnson, MelissaJohnson.com
17. Build The Business As A Sellable Asset
Leaders should not simply pursue sales and profits, but should have the awareness of creating a company that is worthwhile even without them. In other words, leaders need to build a business as a sellable asset. Keeping your business always “in a state of selling” is the strongest strategy to increase the soundness and sustainability of management, regardless of whether you sell it or not. – Karita Takahisa, UNIFY PLATFORM AG
18. Operate Like A Public Company
Start acting like a public company two years before selling. Implement quarterly reviews, detailed reporting, and board-level governance. This discipline makes due diligence smoother and shows buyers you’re already operating at their standards. When buyers see professional systems already in place, they’re buying confidence, not just a business. It eliminates operational chaos post-acquisition. – Sabeer Nelliparamban, Tyler Petroleum Inc.
19. Take An Extended Hiatus
Before you exit, you need to know that your business can function seamlessly without you. I recommend taking an extended hiatus for upwards of a month. This will give your team a chance to problem-solve, make high-level decisions, and even bring in new business without your oversight. – Emily Reynolds, R Public Relations
20. Define Your Post-Exit Identity
Define your post-exit identity before you sell. Many entrepreneurs focus solely on valuation, overlooking the emotional void that follows. Your business is often your identity. Without a clear next chapter—whether it’s a new venture, philanthropy, or personal passion—the transition can be jarring. Proactively planning your purpose ensures a smoother, more fulfilling transition. – Oleg Levitas, Pravda SEO Inc, Real Results SEO Inc.