The Exit Plan Checklist

Start from the finish line.

• I've picked a target window for stepping back or sellingTwo to three years out gives you time to fix what buyers discount.
• I know what kind of exit I wantSell to an outside buyer, family, managers or employees, or keep it and step back.
• I know what I need from the saleWork out your retirement number with a financial planner, not a guess.
• I've decided what my role will be after the saleStay on for a transition, consult, or walk away.
• My advisor team is namedCPA, attorney and financial planner now. A broker or M&A advisor later.

Clean, consistent books a buyer can rely on.

• Three years of reconciled financial statements
• Tax returns tie to the booksDifferences are explained in writing.
• The chart of accounts is consistent year to year
• Owner add-backs are listed and supportedPersonal or one-time expenses, with receipts.
• Personal spending runs outside the business
• The books close every monthSame steps, same timing, every month.
• I can produce accrual-basis reportsBuyers and lenders compare accrual numbers.

Find the leaks before a buyer does.

• I know my margin by service or product
• Vendor contracts and prices were reviewed this year
• Unused software and subscriptions are cancelled
• Pricing was reviewed in the last 12 months
• I run a 13-week cash forecast

The people a buyer will inherit.

• There's an org chart with every role named
• Every key job has a trained backup
• Core procedures are written down by the people who do them
• Key employees have a reason to stay through a sale

The business runs without you in the room.

• I've listed everything only I can doThat list is your handoff plan.
• Day-to-day approvals are delegated
• Key customer relationships are held by the team, not just me
• I've taken two weeks off and the business ran fine
• I've tested a 30-day absence

Nothing important lives only in someone's head.

• Contracts, leases and licenses are organized in one place
• Leases and key contracts can be transferred to a buyerCheck the assignment clauses.
• The company, not a person, owns the domain, logins and brand
• The minute book and ownership records are current

Evidence ready before anyone asks.

• No single customer is too large a share of revenue
• Recurring revenue is documented
• A data room folder is startedFinancials, tax returns, contracts, customer list.
• I have a current valuation estimate
• I know what a quality-of-earnings review looks for
• I know how I'll choose a broker or advisor

Add a few notes, then email your list. Laura will reply with where to start.