Geoff Gwynn, one of our business growth advisors, looks at a question many entrepreneurs avoid until they’re either forced into a decision or feel too burned out to continue.
If you’re over 50, this message is especially urgent. Life circumstances, whether health, family needs, or simple burnout can change quickly. Waiting too long might force you into a rushed sale, which usually means accepting a lower price or less favourable terms. By planning ahead, you give yourself more options. You can wait for the right buyer and time the market selling when your business is on its way up and not when you’re ready to give up.
If your goal is to get the best price you deserve for your years of hard work, minimise your tax liabilities, and walk away on your terms, the right time to start thinking about it is sooner than you think.
The Power of Planning Ahead
Too often business owners wait until they’re ready to exit before putting serious thought into
a sale. Often by this time it’s too late to make any of the changes needed to increase the value
of the business or to position it more attractively for buyers.
Selling a business isn’t like selling a car or a house, it takes time, sometimes years to get
everything in shape. If you want to maximise the sale price you need to be strategic:
✓ Start preparing at least two to three years before you want to sell. This gives you
time to build recurring revenue, strengthen your management team, and reduce
dependency on you as the owner.
✓ Create systems, structures, and processes. Buyers look for businesses that can run
without the founder involved in every decision.
✓ Get your finances in order. Clean, consistent financial records are essential. Ideally,
you should have several years of clear, professional accounts showing steady
performance.
✓ Make sure the business has a plan. Particularly if you are looking at a management
buyout or employee-owned trust, make sure there is a plan for how the business will
continue to grow and succeed after you leave.
The earlier you start preparing, the more leverage you have when it comes to negotiations, and the more attractive your business becomes to prospective buyers. We are regularly introduced to business owners who have tried to sell their business without being ready and
have subsequently had a bad experience and failed to sell.
One particular client having struggled to sell themselves worked with us on a Business Growth Plan, before looking for buyers for a second time. This is what they had to say about the process:
“We tried to do it before we met Elephants Child and even met with a potential acquirer. It was actually the worst offer we had out of around 10 offers because we went into it with no idea what we were doing. We then went into a five- month due diligence exercise, which was exhausting. I don’t think anyone is going to pretend that it’s not.”
Equally we’ve worked with clients who have businesses that initially seem sound and very saleable, but the moment you start to scratch below the surface, cracks and limitations become clear.
One client who wanted a quick sale did not take the time to make any improvements. As a result, weaknesses and potential risks for new owners including over reliance on a single customer, location restricted growth, and knowledge of a key system sitting with only one
individual, the business is unlikely to reach its potential market value.
A Sale on Your Terms
By planning ahead, you give yourself more options. You can wait for the right buyer. You can time the market. You can sell when your business is performing at its peak, not when you’re ready to give up. The most successful business exits don’t happen by accident. They’re the result of intentional, strategic planning. That planning starts with a simple mindset shift: think of your business as an asset, not just a job. No matter your age, the right time to think about selling your business is before you’re ready to leave it.
If you’re over 50, don’t delay
Start the conversation, map out your exit plan, and give yourself the time and flexibility to walk away with the reward your hard work deserves.
Answer these five questions positively and you’re good to go
1. Do you want the financial rewards your hard work deserves?
2. Do you want to minimise your tax liabilities?
3. Do you know what is a fair market price for your business right now?
4. You understand the potential exit options available to you?
5. You know how to increase your business’s value significantly?
Alternatively, you may need help preparing your business for sale or wish to explore the options open to you. We are tremendously proud to have helped our clients to collectively sell their businesses for more than £170m in total proceeds. We also have numerous clients going through the exit process right now, with a combined value in excess of £130m. elephants child has helped these owners to increase the value of their businesses and exit on their terms.
So, get in touch, your future self will thank you