Preparing your business is important. Preparing yourself is essential.
For most business owners, their company is more than an asset—it’s a life’s work, a legacy, and often the largest component of personal net worth. Yet while owners focus on running operations, managing teams, and serving customers, one question often gets overlooked:
“What happens when I’m ready to step away?”
Exit planning is not about selling your company immediately. It’s about making sure that when the time comes—planned or unplanned—you, your family, and your wealth are protected. Early planning allows owners to maximize value, reduce taxes, prepare successors, and enter their next chapter with clarity instead of pressure.
Unexpected events, market shifts, health issues, or key-employee changes can alter a transition timeline. Without preparation, owners risk leaving money on the table or being forced into reactive decisions.
Thoughtful exit planning helps ensure:
Below are foundational components business owners should begin building years before an exit.
A formal valuation is the cornerstone of exit planning. It informs:
A proper valuation also reveals:
Regular valuation updates help owners adapt their strategy proactively—not reactively.
A transition will eventually happen—voluntarily or not. Strong succession planning ensures the business remains stable long after the owner steps away.
Effective plans typically include:
Succession clarity also reduces perceived risk for future buyers or internal successors.
Exiting a business is not just a corporate event—it’s a major personal liquidity event. Owners must plan how this wealth converts into long-term financial security.
This includes:
Depending on timing, structure, and the owner's goals, strategies may include:
Each tool fits different situations and timelines.
Owners often underestimate how much income their business provided. Planning may include:
A transition is the time to evaluate:
Coordinating these elements early prevents rushed decisions at the time of sale.
A future buyer—internal or external—will expect clean records, documented agreements, and clear ownership structure.
Preparing now can include:
These steps reduce transaction friction and help avoid value reductions later.
Markets shift. Interest rates change. Buyer demand cycles. Industry trends evolve. Exit timing heavily influences price, taxes, and overall outcomes.
Owners should track:
Proactive planning allows owners to act when conditions are favorable—not when forced.
To learn more about leveraging a 1031 exchange for tax deferral, download our free e-book today!
General Disclosure
Please note that this information is for informational purposes only and does not constitute individual investment advice. It should not be relied upon as tax or legal advice. Consult the appropriate professional regarding your individual circumstances.
Diversification does not guarantee profit or protect against loss in a declining market. It is a method used to help manage investment risk.
Investing in DST properties and real estate securities involves material risks such as liquidity, tenant vacancies, market conditions, competition, interest rate risks, and the risk of losing the entire investment principal. DST 1031 properties are available only to accredited investors and accredited entities. Verify your accredited investor status with your CPA and attorney.
Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Wealthstone Group and Arkadios are not affiliated through any ownership.