Exit planning guide
Every owner leaves their business one day. An exit strategy means you decide when, how and for how much, instead of leaving it to your health, your age or the market. This guide covers what an exit strategy is, your exit options, a seven-step exit plan, how to lift your business’s value, when to sell and the mistakes that cost owners money.
An exit strategy is your plan for passing ownership of your business to someone else, at a time, price and on terms you choose. It isn’t only about a sale. It covers how you’ll leave, who takes over, what you need from the exit financially and what happens to your staff and customers.
Every business changes hands eventually, through a sale, a succession or a closure. The only question is whether you plan it, or circumstances decide for you.
| Unplanned exit | Planned exit | |
|---|---|---|
| Who decides the timing | Your health, your age or the market | You, often years ahead |
| How it happens | Suddenly, with little preparation | Step by step, with the business prepared for sale |
| Who sets the price | The buyer, often while you’re under pressure | The market, backed by evidence and a sale-ready business |
| Typical result | A lower price, a rushed handover or a closure | A stronger price and a smooth handover |
Could you leave your business tomorrow? If you’ve planned well, the answer should be a confident yes. In our experience, nearly half of owners looking to sell have no exit strategy in place.
Many owners assume a buyer will turn up at the right time with the right offer. It rarely works that way, and an unplanned exit usually costs money. These are the events that most often force an owner’s hand.
| What happens | The risk without a plan |
|---|---|
| Health problems or age | A rushed sale or a closure, at a lower price |
| A partner wants out, or partners fall out | A forced sale, or the partnership is wound up |
| A key employee leaves | Value falls because the business depended on them |
| The market or customer demand shifts | Fewer buyers and lower prices |
| Debts build up | Liquidation, leaving little or nothing for you |
| An unexpected offer arrives | You accept less because the business isn’t ready |
Lenders increasingly expect to see an exit strategy in a business plan too. In fact, your exit plan should come first. Your business plan sets targets and budgets, and your marketing plan sets out how you’ll grow, but both work best when they work back from the date and price you want to exit at.
There’s more than one way to leave a business. Think through each option before you choose the one that suits both the business and your personal goals.
Weighing up whether to sell the business assets or the company shares? Our guide to asset sales and share sales compares the two.
Handing the business to someone you know and trust can feel like the simplest exit. In practice, money and relationships make negotiations harder, not easier. Both sides want a fair deal, but they often see fair differently, especially when stock, work in progress, staff and future performance all have to be agreed.
| Question to settle | Why it matters |
|---|---|
| Is your successor the right person? | Choose on skills and commitment, not loyalty. A trial period in different parts of the business shows whether they’re suited and interested. |
| Are you gifting or selling? | It changes the tax outcome and whether you’re paid for what you’ve built. Get legal and tax advice before you decide. |
| What is the business worth? | An independent valuation sets a fair price and heads off disputes between family members. |
| How will the buyer pay? | A lump sum, payments over time or ongoing dividends each carry different risks for you. |
| Who will own and who will manage? | Decide who owns the business, who runs it and whether managers from outside the family stay on. |
| How will disagreements be resolved? | Agree a process before a dispute arises, with a trusted outsider to give an objective view. |
Keep it at arm’s length. An independent broker acts as a buffer, handles the hard conversations and protects the relationship. They can also show you what an outside buyer would pay, which is often more than you’d ask from someone you know.
Think of exit planning as a journey. Set the destination first, then plan the route back to where you are today.
| Step | What to do |
|---|---|
| 1. Decide when and for how much | Set your target exit date and the price you want, and be clear about why. How much do you need for the next stage of your life? Do you want a clean break, or an ongoing role? |
| 2. Work out the profit required | Calculate the profit the business must show to support your price. A valuation based on real market sales shows you the gap. |
| 3. Set targets and KPIs | Build a program of targets, from revenue and margins to customer spread and how much the business relies on you, with dates attached. |
| 4. Prepare the business for sale | Fix weaknesses, document systems, secure your lease and get your records in order. |
| 5. Get credible advice | Work with a specialist broker, accountant, solicitor and financial planner who will keep you accountable. |
| 6. Measure and adjust | Track performance against your targets, and review the plan as your circumstances and the market change. |
| 7. Make it happen | Go to market at the right time, with the right price, a sale plan, an information package for buyers and a targeted marketing campaign. |
Allow three to five years if you can. That’s enough time to lift profit, reduce reliance on you and sell at a time you choose. Even 12 months of preparation makes a real difference.
Buyers and valuers look at far more than last year’s profit. The strategies below lift value, and the factors list shows what a buyer will weigh up.
To see where your business stands today, work through our pre-sale business health check. To understand how buyers put a price on a business, read how to value a business.
The best time to sell is usually when sales are peaking and profits are still rising. Buyers pay for momentum, and for a business with its best years still ahead of it.
| Signs it may be the right time | Signs to wait and prepare |
|---|---|
| Revenue and profit are growing | Profits have dipped and the cause isn’t fixed |
| Your lease has plenty of time left to run | Your lease is close to expiring |
| Your team and systems run the business well | The business relies heavily on you |
| Buyer demand in your industry is strong | Your accounts aren’t up to date |
| Your personal and financial goals are clear | Your morale is low and you want out fast |
Once you go to market, most sales take several months. See how long it takes to sell a business for typical timeframes at each stage.
A sale-ready business sells faster, for more, with fewer surprises in due diligence. Do your own due diligence first, and fix problems before a buyer finds them.
Selling a business with stock? You can sell walk in, walk out, with stock included in the price, or plus stock at value, where stock is paid for separately at its landed invoice cost. Running stock down before you sell usually leaves you better off. See selling a business with stock.
For most owners, the business is their biggest asset, and the sale funds their retirement or their next venture. Plan your personal finances alongside the business, and avoid these common mistakes.
| Mistake | What to do instead |
|---|---|
| Leaving retirement planning too late | Start in your 50s, or earlier. Health, relationships or the market can bring your exit forward. |
| No personal financial plan | Work out what you’ll need to live on, including health costs, and how much the sale has to provide. |
| Carrying debt into retirement | Pay down loans and credit cards while the business is still paying you. |
| Closing the business instead of selling it | Find out what it’s worth first. A sale usually realises far more than closing down and selling the assets. |
| Disorganised paperwork | Get your will and estate planning documents, asset and investment records and tax information in order. |
| Misjudging pension entitlements | Check the income and assets tests before you count on the Age Pension. |
| Not planning for tax on the sale | Ask your accountant whether the small business CGT concessions apply to you, well before you sell. |
| Not deciding what comes next | Think about how you’ll spend your time, and don’t rush into a new venture straight after the sale. |
Speak to a licensed financial planner about your retirement and investments, and to your accountant about tax. Our guide to capital gains tax on the sale of a business covers the basics.
| Mistake | What to do instead |
|---|---|
| Not knowing your market | Get an appraisal based on current sales, and understand buyer demand in your industry. |
| Records that aren’t up to date | Keep three years of accounts reconciled and ready for a buyer’s accountant. |
| Going it alone | Work with a specialist business broker and the right advisers. |
| Selling when morale is low | Plan ahead, so frustration doesn’t push you into accepting less. |
| No plan for the sale itself | Agree a sale plan and timeline with your broker before you list. |
| Taking your eye off the business | Keep performance strong while it’s on the market. Buyers will check your latest figures. |
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As early as possible, ideally from the day you buy or start the business. Most owners begin serious planning three to five years before they want to leave, which gives them time to lift profit and reduce the business’s reliance on them.
No. An exit strategy covers every way you might leave, including family succession, a management or partner buyout, a part sale or stepping back while keeping ownership. It also protects you if illness or a partner dispute forces an early exit.
Succession planning is about who takes over the business, often a family member or manager. Exit planning is broader. It covers how and when you leave, what you need financially and how to get the best price, whoever the buyer is.
A business appraisal gives you a likely sale price range based on current market sales. If someone else needs to rely on the figure, such as a bank, the ATO or a family member buying in, you’ll need a formal business valuation.
Yes. Get an independent valuation, put the terms in writing and get legal and tax advice, especially if you’re gifting part of the business. Using a broker keeps negotiations at arm’s length and protects the relationship.
Most business sales trigger capital gains tax, but the small business CGT concessions can reduce it significantly, or remove it. Whether they apply depends on your circumstances, so speak to your accountant well before you sell.
Usually a specialist business broker, your accountant, a solicitor and a financial planner. The broker focuses on value, timing and the sale itself. Your other advisers cover tax, legal structure and your personal finances.
It depends on the price, the industry and how ready the business is. Well-prepared, correctly priced businesses generally sell within several months, and the preparation you do before listing makes the biggest difference.
Exit planning
The sale process, step by step.
Work out what your business is worth.
Check how ready your business is to sell.
Typical timeframes for each stage.
Walk in, walk out or plus stock.
CGT and the small business concessions.
How a broker helps you sell, and what it costs.
Our free 22-page exit strategy guide.
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This guide is general information, not legal, tax or financial advice. Speak to your own advisers about your situation before you plan your exit.
Based on Benchmark's experience helping owners plan and sell their businesses, and our Exit Strategy Guide. Tax points reflect Australian Taxation Office guidance. Checked 27 October 2026.
