Dear Business Owners,

Ever wonder what your company would be worth if you sold it tomorrow?

This is Matteo, your personal CFO. Every week, I help founders like you unlock their business's true potential - and today, we're talking about the big one: EXITS.

So you’ve been building your business. Blood, sweat, and spreadsheets have gotten you this far. 

But now you’re eyeing the next big step: A PROFITABLE EXIT.

Whether selling to retire, pivot, or just cash in on your hard work, a smart exit strategy can be the difference between a champagne send-off 🥂 and a "What was I thinking?!"

Let’s get you prepped to sell high and rest easy.

Two weeks ago, I met an entrepreneur who had been running his consulting business for over 26 years.

As we talked, he admitted he was ready to exit but had no plan or strategy.

For years, he was so focused on growth that he overlooked the bigger picture.

What is an EXIT STRATEGY?

An exit strategy is a plan to sell or transition your business ownership for high value and at maximum business potential.

Every successful business journey reaches a crossroads where the original owner must make a critical decision: plan their exit strategy or acquire new market opportunities.

It's a simple but profound choice that looks like this:

Think of it like a parachute 🪂: You hope you won’t need it in a hurry, but you’ll be glad it’s there when the time comes.

The NEED of an exit strategy

A solid exit strategy minimizes potential losses and maximizes profits on investments. The business needs an exit strategy for:

1.  Clarity and Direction: Knowing your end game keeps you focused on long-term goals.

2.  Investor Attraction: Investors will likely back businesses with a clear plan.

3. Steady Growth:  A well-planned exit ensures your business thrives even after you’ve moved on.

I’ve contributed to multiple business exits and uncovered three key elements that make an investor pay MORE.

Three elements of a SUCCESSFUL exit

The timeline spans several years, with the essential elements: Preparation, Negotiation, and Execution.

Here’s what an ideal exit looks like:

Over seven years, we see a steady increase in sales and healthy cash flow, indicating a profitable business ready to be cashed out.

Let’s get you familiar with these phases in detail: 

1/ Preparation (Years 3–4)
Average Preparation Time: 18-24 months

Preparation is everything, this is where you lay the groundwork. Most businesses fail because they don’t prepare enough.

Early planning doesn’t mean an early exit but it reflects the founder’s foresight. Here’s how to get ready:

1. Get Your Financials in Order

   When preparing to sell your primary aim should be to maximize business valuation.
   
   Choose the most suitable exit route for your business, which can be an IPO, M&A, liquidation, or more.
   
   Conduct a full financial audit and maintain consistent financial statements (P&L, balance sheets, cash flow statements). This will make your business more attractive to buyers.
   

2. Know Your Valuation
   Look at your business from the perspective of a buyer. 

   • Understand EBITDA multiples, discounted cash flow, and asset-based valuation methods.

   • Know what similar businesses in your industry are selling for.

   • Hire a valuation expert to get an accurate, market-ready valuation.
     

3. Streamline Operations
   Create systems and processes that make your business scalable. Buyers pay more if there are visible opportunities for future growth in a company.

2/ Negotiation (Years 5–6)
Average Timeline: 6-8 months

Negotiating your exit is part art, part science. Here are the key steps to focus on:

1. Talking to multiple buyers and creating urgency by setting deadlines for offers.

2. Showing the business’s growth potential via untapped markets, new product lines, or cost-cutting means.

3. Use metrics to back your claims. Buyers love numbers that demonstrate scalability and profitability.

4. Know your non-negotiables, like the price, payment terms, or the continuation of your legacy. Prepare to reject and get rejected.

Hiring experienced advisors can help strengthen negotiating power and maximize outcomes.

3/ Execution (Year 7)
Average Closing Time: 4-6 months

Execution is where deals are won or lost. Here’s how to close confidently:

1. Organize Documentation: Be ready with all the financial records, contracts, operational manuals, and legal documents. Transparency builds trust.

2. Address Concerns Proactively: Anticipate buyer questions and provide clear answers. Stay responsive to buyer requests to maintain momentum.

3. Plan for Transition: A strong leadership team and succession plan are critical. Equip your team with the skills and training needed to ensure the business thrives or the cost might be dire.

Future-proof your exit: Succession Planning.

If the business can’t run without you then it’s worthless.

Start succession planning early and develop a bench of talented and compatible executives to step into leadership roles in the event of your departure.

Exiting is a milestone, not a finish line.

With the right preparation, negotiation, and execution, you’ll walk away richer and prouder of what you built.

Remember: The best exits aren't accidental. They're purposeful.

Matteo Turi, 
Your Personal CFO

I share quick, actionable insights on LinkedIn. Check out these posts to level up your business:

Top picks to level up your business:

1. One game-changing tip for financial success

2. 2025 CFO Playbook to boost your valuation

3. Why every founder needs an exit plan

4. My best advice for scaling businesses 

5. 6 reasons why most businesses fail

Get your fix of fast, impactful strategies. See you on LinkedIn!