Business exit planning involves far more than determining valuation and negotiating the best financial terms. In her latest article for Entrepreneur Magazine, Jessica Fialkovich, Founder and President of Exit Factor™, explores why many owners experience regret after selling a business and how preparing for the emotional side of an exit can lead to a more successful transition.
Research cited in the article suggests that approximately 75% of business owners regret selling their company within a year. The problem is often not the financial outcome. After years or decades of building a company, owners can suddenly lose the routines, relationships, identity, and sense of purpose that came with running it.
Define What a Successful Business Exit Means to You
Before entering negotiations, owners should determine what success looks like beyond the sale price.
For some, maximizing financial value is the priority. Others care deeply about protecting employees, preserving company culture, maintaining their legacy, or creating more time for family and personal health. Identifying these priorities early allows owners to incorporate them into the business exit planning process rather than confronting them after the transaction closes.
If maintaining influence over certain aspects of the company matters, those expectations should also be addressed during negotiations. Once ownership transfers, leverage can disappear quickly.
Plan for Life After Selling Your Business
A successful exit also requires a plan for what comes next. Moving from a demanding schedule to an empty calendar can create an unexpected loss of direction.
Owners should begin designing their post-sale future six to 12 months before exiting. That could mean traveling, starting another venture, writing a book, supporting a nonprofit, spending more time with family, or pursuing a long-delayed goal.
As part of United Franchise Group’s family of brands, Exit Factor helps business owners increase company value and prepare strategically for eventual exits.
Financial preparation matters, but the strongest exit plans also account for identity, purpose, legacy, and life after ownership.
This article was originally published in Entrepreneur Magazine.