5 Reasons to Start Exit Planning Now — Even If You’re Not Ready to Sell
“If you don’t know where you’re going, any road will take you there. If you walk long enough, you’re sure to get somewhere.”
– The Cheshire Cat, Alice in Wonderland
When it comes to your business exit, the truth is simple: you’re going somewhere—whether you’ve planned for it or not.
Most MSPs don’t plan their exit until they’re ready to walk away—or worse, when they’re forced to. That’s when deals fall apart, value gets left on the table, and regret sets in. The good news? You don’t have to be one of them.
Here are five reasons to start exit planning long before you’re ready to leave.
- Your Exit Will Happen—Planned or Not
Every owner eventually exits. There are several ways to exit a business.
- Sell to a strategic buyer
- Sell to a financial buyer
- Sell or pass down to family or heirs
- Sell to employees and/or partners
- Go public
- Close down/liquidate
- Die with it
- Go bankrupt
You can plan for one or more of the above strategies or one of them will do the planning for you (hopefully, it won’t be Option 7 or 8). The Cheshire Cat teaches us Direction over Randomness. With a solid plan and roadmap, you can guide the direction of your business and future.
- It Takes Time to Maximize Value
Buyers don’t pay top dollar for potential—they pay for clean financials, documented processes, and stable, transferable operations. And those things don’t happen overnight. Realistically, it takes 1 to 3 years to optimize your business for exit. The sooner you start, the more time you have to fix what needs fixing—and the more leverage you have when you step to the table.
- You’ll Run a Better Business in the Meantime
One of the best things about building a buyer-ready business? It runs better today. Exit planning forces you to improve margins, tighten up processes, reduce chaos, and build systems that don’t rely on you. Even if you never sell, that’s a win.
- Most Deals Fall Apart for Fixable Reasons
Here’s the frustrating truth: A lot of MSP deals fall apart during due diligence—not because of bad numbers, but because of messy contracts, poor documentation, or businesses that can’t run without the owner. The good news is that most of those issues are 100% fixable—with enough time and awareness.
- You’re Creating Options, Not Obligation
Planning your exit doesn’t mean you’re locked into selling. What it really means is you’re creating options. You might sell in five years, you might hand it off internally, or you might build a more scalable, hands-off version of what you already have. Exit readiness is about being prepared—for whatever path you choose.
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