Exit planning requires a structured approach to ensure a smooth ownership transition and long-term business stability. While every company’s path will look different, the following steps provide a framework for an effective exit plan.
View and download a PDF version of this checklist here.
Evaluate your company’s financial health, leadership structure, and long-term objectives. As a business owner, consider your personal goals, including whether you want to remain in an advisory role. Understanding where your company stands today will help shape the best transition strategy.
“The first step in exit planning is clarity—about your business today and your vision for its future. Understanding your position allows you to create a plan that protects what you’ve built and positions the company for continued growth.” - Lisa Reardon, Executive Chair, OwnersEdge
“Think of exit planning like planting a tree. The best time to start was 20 years ago. The second-best time is now.” - Rob Dillon, CEO, OwnersEdge
Creating a clear timeline allows for proper leadership development, financial preparation, and legal structuring. A phased transition often also leads to better outcomes than a rushed exit.
Explore various options, such as family succession, management buyout (MBO), selling to a private equity firm, transitioning to an ESOP, or converting to a cooperative. Selecting the one that best aligns with your business’ values and goals is critical.
“Your exit strategy is more than a financial decision—it's a values alignment. The right path preserves not just your company's financial health, but its cultural DNA.” - Christine Adee, CEO, OwnersEdge
Whether transitioning leadership internally or preparing employees for an ownership change, high-potential leaders are crucial to an exit plan. It should involve mentoring, leadership training, and gradually increasing responsibilities to ensure a seamless shift.
“Great exit planning isn't about finding perfect replacements, but about cultivating potential. The most successful transitions transform high-potential employees into organizational visionaries.” - Lynnette Fritz, Chief Human Resources Officer, OwnersEdge
Work with trusted advisors to establish buy-sell agreements, determine business valuation, and navigate tax implications. This will help avoid potential disputes and disruptions.
“Surrounding yourself with experienced and practical M&A attorneys, financial and tax advisors is critical for sellers as they prepare their business for ownership transition. The sale process itself can be daunting, particularly for entrepreneurs who have been rightfully focused on growth and the operations required to support that growth over a long period of time. As a result, having a set of trusted advisors in your corner, who have done deals before, can help a seller filter out what’s important and what’s not before, during, and after signing off on a definitive purchase agreement.” - Rob Dillon, CEO, OwnersEdge
Once your plan is in place, execution becomes the most critical phase. This step involves putting your leadership transition into motion, formalizing ownership transfers, and aligning internal operations with the future vision of the business. It’s important to follow through with consistency—ensuring that timelines are met, successors are supported, and processes adapt as needed.
Clear communication remains essential during execution. Keep your team informed at key milestones, reinforce confidence in leadership, and continue to engage stakeholders in a way that reflects your company’s values.
“Effective communication isn't just about sharing information—it's about creating a shared understanding that connects the past and the future.” - Lisa Reardon, Executive Chair, OwnersEdge
At OwnersEdge, we specialize in acquiring healthy businesses. As a 100% employee-owned ESOP holding company, we’ve successfully acquired multiple businesses while preserving their legacy, culture, and long-term stability.
Whether you're exploring ESOPs, considering a future merger, or simply planning ahead, our team is here to discuss how selling to an ESOP holding company can provide employee ownership and long-term wealth creation—while giving you a clear, rewarding exit.
Exit planning isn’t just about preparing for a leadership change—it’s about setting your business up for continued success long after you step away. By following a structured process and exploring possible ownership models, you can create a lasting legacy and protect what you've built.
Confidentially reach out to the OwnersEdge team to explore the right path forward and see if cash at close, long-term growth support, and employee ownership are the right choice for your exit plan.