What Is an Exit Plan Report?

An exit plan report is a structured, written roadmap that outlines how a business owner will successfully leave or transition out of their business. It includes financial, operational, legal, and personal considerations—and it serves as a clear deliverable guiding the exit planning process.

In plain terms, it's your master plan for stepping away from your business on your own terms, whether that means selling, passing it on, or closing operations intentionally.

Why This Matters to Small Business Owners

Most owners spend decades building their business, but very few prepare for the day they’ll leave it. Without a documented plan:

• Exit timing can be forced by health, burnout, or financial need

• Business value may be lower due to poor readiness

• Transitions become stressful, chaotic, or even impossible

An exit plan report turns vague goals into actionable steps, helping you:

• Maximize business value

• Reduce taxes on the sale

• Avoid legal surprises

• Prepare successors or buyers

• Protect your personal financial future

It’s not just about the end—it's about building a business that’s transferable, valuable, and aligned with your life goals.

Common Elements of an Exit Plan Report

Most exit plan deliverables include:

• Owner’s personal goals and target timeline

• Business valuation or value estimate

• Financial readiness assessment

• Tax strategy recommendations

• Operational improvements needed to de-risk the business

• Deal structure options (e.g., internal succession, external sale, ESOP)

• Transition action plan with clear next steps and deadlines

Many firms (including ours) present this as a written roadmap and companion strategy session.

Real-World Use Cases

• A 55-year-old founder wants to retire in 7 years and needs to prepare her general manager to take over

• A co-owned firm wants to ensure one partner can buy the other out without external financing

• A tech company receives acquisition offers but isn’t sure what it's actually worth or if it’s ready for due diligence

In all these cases, an exit plan report provides clarity, confidence, and a measurable path forward.

Related Terms & Common Misconceptions

• Not the same as a business valuation. A valuation is usually part of the report, but the exit plan goes far beyond price—it includes tax, timing, risk, and ownership dynamics.

• Not just for retirement. Exit planning also applies to selling, restructuring, passing the business to family, or even preparing for death or disability.

• Not a one-time event. Exit plans evolve. The report is a living document that should be updated as goals or market conditions change.

Related terms:

• Succession plan

• Value growth roadmap

• Buy-sell agreement

• Exit readiness assessment

  
  

Tips for Using an Exit Plan Report in Your Business

• Start early. Ideally, begin 3–5 years before your desired exit.

• Work with certified advisors. Look for professionals with designations like CVA or CEPA (see: NACVA).

• Use the report to guide decisions. It should influence hiring, operations, tax strategy, and personal planning.

• Review it annually. Life and business change—your exit plan should too.

  
  

An exit plan report is more than a document—it’s your bridge to the next chapter. Whether you want to retire, sell, or scale down, this roadmap ensures you leave with purpose, value, and peace of mind.

To explore how an exit plan report fits into your overall business strategy, visit our Exit Planning page.