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How Long Does Exit Planning Take?

exit planning

Most small business owners need 12 to 36 months to complete a successful exit plan. However, the ideal timeline is closer to 3 to 5 years, especially if you want to maximize value, minimize taxes, and transition smoothly.


The earlier you start, the more control you have over the outcome.


Why This Question Matters


Exit planning isn't a one-time event. It’s a multi-phase process that involves:

  • Business valuation

  • Tax and legal strategy

  • Financial planning

  • Successor identification or buyer readiness

  • Operational improvements

  • Transition documentation


Trying to exit in under a year can limit your options and reduce business value. Many owners underestimate how long it takes to find the right buyer, train successors, or resolve tax issues.


Related Questions Business Owners Ask


  • Can I sell my business in under a year? Yes, but often with compromises. You may leave money on the table or face rushed decisions.

  • When should I start planning if I want to retire at 65? Ideally by age 60—or earlier if your business depends heavily on you.

  • What if I don’t plan to sell but want to transfer to family? You’ll still need time for legal and tax structuring, training, and financing.

  • Is it too early to start exit planning? No. The earlier you plan, the more options you create—even if your exit is 10+ years away.


Tips for Managing Your Exit Planning Timeline


If you’re 3–5 years out:

  • Get a current business valuation

  • Identify value gaps (what’s hurting your valuation)

  • Start delegating more and documenting systems

  • Meet with a tax advisor for long-term strategy


If you’re 1–2 years out:

  • Prepare financials and legal documents for buyer due diligence

  • Engage advisors for deal structuring and succession planning

  • Define your ideal buyer or successor


If you’re less than 1 year out:

  • Focus on cleanup: accounting, legal, operational

  • Be realistic about pricing and deal terms

  • Talk to a broker or advisor to understand your market


No matter your timeline: Start with a strategic roadmap. Our Exit Planning service helps you take the first step with a clear, customized plan.


Bottom line: Exit planning takes time—more than most owners expect. Whether your exit is two years away or ten, the right time to start preparing is now.

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