Exit planning isn't for when you're ready to leave. It's for right now.
I exited my company to Walmart. Not because I got lucky, and not because I had a great broker. Because I spent years building a business that was designed to be acquired — whether I sold it or not. Here's what that actually looks like.
The biggest myth in business is that exit planning is something you do when you're ready to sell. Wrong. Exit planning is something you do from day one, because the habits and systems you build early are the ones that determine your valuation later.
When I took over my first company for $1, I wasn't thinking about selling. I was thinking about survival. But I built it like I would sell it — clean books, documented processes, a leadership team that could run without me. Those decisions, made years before any acquisition conversation, were the reason we got the deal we got.
Run it like you'll sell it. That's not just a strategy — it's a discipline. And the earlier you start, the more options you have.
Buyers don't buy revenue. They buy predictability. They want to know that the business will perform after you leave — that the systems, the team, and the customer relationships are transferable. If the business depends on you personally, you've got a problem.
The four things every serious buyer evaluates: clean, auditable financials; documented operational processes; a leadership team that can run independently; and a customer base that isn't concentrated in one or two accounts. Get those four things right and you're in a very different conversation.
I've been on both sides of the table — as a seller and as someone who's helped founders prepare for sale. The businesses that get premium valuations aren't always the most profitable. They're the most predictable.
If your books are a mess, fix them before you need them. Get on GAAP accounting. Separate personal and business expenses. Document every revenue stream. Build a trailing twelve-month P&L that tells a clear story about your business performance.
Buyers will do due diligence. They will find everything. The question is whether what they find helps your valuation or hurts it. Clean financials aren't just about accuracy — they're about telling a compelling story about your business trajectory.
Work with a quality CFO or fractional CFO at least 18-24 months before any sale process. The financial cleanup alone can add significant value to your multiple.
This is the one that most founders resist the longest. They've built their identity around being the leader, the decision-maker, the face of the business. And then they wonder why buyers discount their valuation because of key-person risk.
The most valuable thing you can do to prepare for acquisition is to make yourself replaceable. Build a leadership team that can run the business without you. Document the decisions you make. Delegate authority, not just tasks. Train your team to think like owners.
When I was preparing for our exit, I spent two years systematically removing myself from daily operations. Not because I didn't care — because I cared enough to build something that would last beyond me.
What do you need from an exit? Not what would be nice — what do you actually need to achieve your financial goals? Know that number, then work backwards to understand what revenue, EBITDA, and multiple you need to get there.
Most founders have a vague idea of what they want but no concrete plan to get there. Get specific. Talk to an M&A advisor. Understand how businesses in your industry are valued. Then build your business to hit those metrics.
Exit planning is just business planning with a specific destination in mind. The destination clarifies every decision you make along the way.
Acquisition readiness isn't a destination — it's a way of operating. Build clean systems, develop independent leadership, maintain pristine financials, and run your business like it's always for sale. Do that, and when the right buyer comes along, you'll be ready.
Take the free 75x Scale Readiness Assessment and get a personalized roadmap based on where your business actually is.