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What Is Exit Planning?
- Cameron Teich
- Jun 30
- 12 min read
Updated: 7 days ago
A Simple Guide for Christian Business Owners
Have you ever wondered what will happen to your business when you’re ready to step away?
Maybe you’ve built your company from the ground up, pouring in years of sacrifice, late nights, and hard decisions. Perhaps your business provides for your family, employs faithful team members, and serves your community in meaningful ways. But have you thought about what happens next?
Most business owners spend decades growing their companies but very little time planning how to leave them well. Exit planning is about more than just “selling the business” someday. It’s about making sure your life’s work continues to flourish and bless others, even after you’re no longer at the helm.
In this article, we’ll explain what exit planning is, why it matters, and how you can start today to build a transition strategy rooted in clarity, confidence, and legacy. Because as Christian business owners, we believe the business is a tool, but proper stewardship building a positive legacy is the ultimate goal.
What Is Exit Planning?
Exit planning is a term that often confuses business owners, conjuring images of brokers, legal paperwork, or quick sales to strangers. But true exit planning is far deeper and more strategic.
Simply put, exit planning is the proactive process of preparing yourself, your business, and your finances for a future transition of ownership or leadership.
At its core, exit planning asks:
What do you want your life to look like after you leave the business?
How much do you need financially to live that life with freedom and peace of mind?
Is your business structured to run without you, so it remains valuable to a buyer, your family, or your employees?
It’s not just about selling. In fact, exit planning includes all possible paths:
Transferring ownership to family
Selling to a third party or private equity group
Transitioning to employees through an ESOP or management buyout
Closing or liquidating in a way that protects your interests
But here’s what most owners miss:
Exit planning is really about building a better business today.
When you create an exit plan, you are:
Strengthening your company’s systems and leadership so it thrives without you
Maximizing its market value and attractiveness to buyers
Reducing risks and operational dependencies
Preparing your family for the financial, emotional, and spiritual impact of the transition
Ultimately, exit planning is wise stewardship. It’s aligning your personal, financial, and business goals so that when the day comes, whether expected or unexpected, you can leave on your terms, bless your family and employees, and step into the next season of your calling with confidence.
Why Is Exit Planning Important?
Most business owners spend years (sometimes decades) building their companies, but very few spend even a fraction of that time planning how to leave well. Yet exit planning is one of the most important decisions you will ever make.
The Reality
Studies show that 70-80% of businesses that go to market never sell. And among the owners who do sell, the majority regret the outcome within a year. Why? Because without a plan:
They didn’t get the price they needed to retire comfortably.
They felt rushed and forced into a deal that didn’t align with their values.
Their employees were left without leadership or stability.
Their family experienced unexpected tax burdens, relational conflicts, or uncertainty about their future.
Imagine pouring your life into building something valuable, only to watch it unravel because no plan was in place.
The Consequences of Not Planning
Without exit planning:
Your business may sell at a discount or fail to sell at all.
Taxes can erode much of what you worked so hard to build.
Family members may be unprepared for sudden wealth or business decisions.
Employees and customers may lose confidence, causing disruption and lost value.
You may find yourself trapped in the business longer than you wanted, unable to leave on your own terms.
The Benefits of Proactive Planning
On the other hand, with intentional exit planning:
You maximize business value.
You identify ways to increase profitability, reduce dependency on yourself, and make your company more attractive to buyers or successors.
You gain more exit options.
Instead of being forced to sell to the first buyer who shows interest, you can evaluate multiple paths: family succession, employee ownership, third-party sale, or structured wind-down.
You achieve financial peace of mind.
You know what your business is worth, what you need to retire or fund your next calling, and how to minimize taxes and maximize retained wealth.
You protect your family and legacy.
Your loved ones aren’t left with confusion or conflict but are guided by your intentional planning and stewardship.
You fulfill your purpose with confidence.
Exit planning ensures that your business continues to bless employees, customers, and the community even after your leadership ends.
As Christian business owners, we are called to steward what God has entrusted to us. Exit planning is an act of faithful stewardship and wise leadership, ensuring that your business continues to serve its purpose long after you step away.
When Should You Start Exit Planning?
If there is one truth every exit planning advisor agrees on, it’s this:
The best time to start exit planning was yesterday. The next best time is today.
Most business owners underestimate how long it takes to prepare a business for a successful exit. It’s common to hear, “I’ll think about that when I’m ready to retire,” but waiting often limits your options, reduces your business’s value, and increases stress during the transition.
The Ideal Timeline
Ideally, exit planning should begin 3 to 10 years before your desired exit date. This gives you time to:
Grow your business’s value strategically
Implement operational improvements, build a strong leadership team, and increase profitability so your business is attractive to buyers or successors.
Reduce dependency on you
Create documented systems and processes so the business can thrive without your daily involvement.
Optimize tax and financial outcomes
Many of the most powerful tax minimization strategies require multi-year planning to implement effectively.
Prepare your family and team
Transitions aren’t just financial – they’re emotional and relational. Early planning allows you to communicate clearly with family members and employees, avoiding surprises and hurt feelings.
But What If I Don’t Plan to Exit Soon?
Even if you don’t plan to exit for decades, having a plan in place is still critical. Why?
Unexpected events happen. Health issues, economic downturns, family changes, or unsolicited offers can force you into an exit before you’re ready. Planning ensures you and your family are protected no matter what comes.
Exit planning improves your business today. The very steps you take to prepare for an exit – improving systems, training leaders, managing financials – make your business stronger and more profitable now.
Key Triggers That Signal It’s Time to Start Planning
You’re within 10 years of your desired retirement or transition date.
Your health or energy is changing.
You’re receiving unsolicited offers to buy your business.
You want to transition ownership to children or employees in the future.
You’re feeling “trapped” by the business with no clear next step.
You desire to free up time for other callings, ministries, or family priorities.
A Mindset Shift
Exit planning isn’t about leaving your business. It’s about building it to a place where you can leave when you want, how you want, and for the price you need.
As Proverbs 21:5 says,
“The plans of the diligent lead surely to advantage, But everyone who is hasty comes surely to poverty.”
What Are the Key Components of Exit Planning?
Exit planning isn’t a single meeting with your attorney or a quick conversation with your CPA. It’s a comprehensive, strategic process that integrates every part of your personal, financial, and business life to create a clear, confident transition.
Below are the five key components of an effective exit plan:
1. Personal Goals
Before any numbers are crunched or documents drafted, the first question is:
“What do you want your life to look like after you exit?”
Exit planning starts with you. Ask yourself:
How do I want to spend my time after exiting?
Do I plan to retire fully, work part-time, volunteer, start another business, or go into ministry?
Where do I want to live, and what lifestyle do I desire?
What legacy do I want to leave for my family, community, and kingdom impact?
Without clarity here, even the best business sale can leave you feeling aimless or regretful.
2. Business Readiness
Next, assess your business’s current state and readiness for transition:
Valuation: What is your business worth today? What could it be worth with improvements?
Operational Systems: Are your processes documented so the business runs smoothly without you?
Leadership & Management Team: Is there a strong team in place to lead after you leave?
Customer & Revenue Stability: Are revenues diversified and customer relationships strong and transferable?
A business that is too dependent on its owner is often unsellable or sells at a significant discount. Preparing your business to thrive without you is critical for maximizing its value.
3. Financial Readiness
Even if your business is ready, is your personal financial life ready for the transition?
How much do you need to maintain your desired lifestyle after exit?
Do you know your “walk away number” – the net proceeds needed after taxes and fees to meet your goals?
Have you planned for taxes? Many owners are shocked by how much capital gains tax, depreciation recapture, or estate taxes reduce their net proceeds.
Do you have a plan to steward and invest the proceeds? Managing a large liquidity event requires different financial planning than managing business cash flow.
4. Transition Options
Exit planning isn’t just about selling to a competitor. Multiple exit pathways exist:
Sale to a third party (individual buyer, strategic buyer, or private equity)
Family succession (passing ownership to children or relatives)
Management buyout (your current leadership team buys the business)
Employee Stock Ownership Plan (ESOP) (employees become partial or full owners over time)
Orderly liquidation or wind-down (closing and selling assets if no buyer or successor is suitable)
Each option has unique financial, tax, operational, and relational implications. Exit planning helps you evaluate these options in light of your goals, values, and desired legacy.
5. Professional Team Coordination
Finally, exit planning requires a trusted team of advisors working together, including:
CPA: For tax minimization and financial reporting.
Attorney: For legal structure, contracts, and succession documents.
Financial Advisor: For post-exit investment planning, retirement income, and wealth transfer.
Value Advisor: To guide strategy, growth initiatives, succession planning, and the entire exit process.
Without coordinated advice, owners often receive fragmented recommendations that fail to integrate into a cohesive, effective exit strategy.
Bringing It All Together
Each of these components is essential. Exit planning is not just a checklist, it’s a strategic roadmap aligning your life, finances, and business to ensure you exit well.
As Proverbs 15:22 reminds us:
“ Without consultation, plans are frustrated, But with many counselors they succeed.”
Common Myths About Exit Planning
Many business owners avoid exit planning because of misconceptions that hold them back. Let’s address some of the most common myths so you can move forward with clarity and confidence.
Myth #1: “I’m too young to plan an exit.”
Reality: Exit planning isn’t just for owners nearing retirement. In fact, the earlier you start, the more options you create and the more value you build. Exit planning is really about:
Strengthening your business today
Preparing for the unexpected (health issues, unsolicited offers, market shifts)
Creating freedom and flexibility to leave on your terms when you’re ready
Think of exit planning like planting a tree. The best time was years ago. The second best time is today.
Myth #2: “My kids will just take over.”
Reality: Family succession is a beautiful option, but it’s rarely automatic. It requires:
Assessing your children’s interest and capability
Developing their leadership skills and business acumen
Structuring ownership transfer in a way that is fair, tax-efficient, and sustainable
Without intentional planning, family successions often result in conflict, financial strain, or business failure. An exit plan ensures your children are prepared and relationships remain strong.
Myth #3: “It only takes a year or two to prepare.”
Reality: Most successful exits take 3-10 years of preparation. Why?
Buyers want to see stable, transferable cash flows over multiple years.
Operational improvements and leadership development take time.
Tax minimization strategies often require multi-year implementation.
Transitioning customer relationships and supplier agreements can’t be rushed.
Waiting until you’re ready to retire to start planning limits your options and negotiating power.
Myth #4: “I’ll just sell to whoever offers the most money.”
Reality: The highest offer isn’t always the best. Factors to consider include:
Buyer financing ability and deal certainty
Cultural fit with your employees and customers
Tax treatment of the sale structure
Post-sale involvement or restrictions on you as the owner
Exit planning helps you evaluate offers strategically, not just financially.
Myth #5: “I don’t need an exit plan until I’m ready to leave.”
Reality: Without an exit plan in place, you may be forced to exit under unfavorable terms due to:
Health issues
Family emergencies
Market changes
Burnout or unexpected offers
Exit planning is about being ready for any scenario, not just retirement.
A Mindset Shift
These myths can keep you trapped in indecision, risking your business, family, and future. The truth is:
Exit planning isn’t about leaving your business. It’s about building it so you can leave well, whenever you choose.
First Steps to Get Started
Understanding exit planning is important, but taking action is what transforms your business and secures your future. If you’re ready to begin, here are the first practical steps:
Self-Assessment – Where Are You Now?
Begin by taking an honest inventory of your current situation:
Personal readiness: Are you emotionally and spiritually ready to step back from the business? What would you do with your time?
Financial readiness: Do you know how much you need to maintain your desired lifestyle after exit? Have you calculated your “walk away number”, the net proceeds required after taxes and fees?
Business readiness: Could your business run without you for three months? Six months? Does your team have clear systems and leadership structures in place?
This assessment doesn’t need to be formal at first. Even journaling your answers to these questions can provide powerful clarity for your next steps.
Get a Business Valuation
Most business owners don’t know what their business is worth today. Without this baseline, planning becomes guesswork.
Engage a certified business valuation expert to determine your current fair market value.
Identify value gaps between what your business is worth today and what it needs to be worth to meet your goals.
Understand the drivers of value in your industry (cash flow stability, customer diversification, operational systems, etc.).
A valuation isn’t just for selling, it’s a strategic tool to guide growth, tax planning, and succession preparation.
Clarify Your Goals and Timeline
Define your desired exit horizon:
Do you want to exit in 3 years? 5 years? 10 years?
Will you step out entirely or maintain partial ownership or an advisory role?
What do you want your family and employees to say about your exit process when it’s complete?
Clear goals create a target to plan towards, empowering your advisors to build the right strategies.
Build Your Exit Planning Team
Exit planning is not a solo journey. Begin identifying and engaging your team of trusted professionals:
CPA – for tax analysis and strategy
Attorney – for legal structure, succession documents, and sale contracts
Financial advisor – for retirement income, investments, and estate planning
Value advisor – to guide the process, coordinate the team, and implement your plan effectively
Your team works best when coordinated under a shared strategy rather than giving fragmented advice in isolation.
Schedule an Introductory Call with an Exit Planning Advisor
Finally, take action this week by scheduling a complimentary consultation with a qualified exit planning advisor. They will:
Provide a clear overview of the exit planning process
Help you identify immediate areas of focus
Outline next steps to begin your personalized roadmap
Remember
Exit planning isn’t a one-time event. It’s a process that brings together your faith, family, finances, and business to build a future rooted in clarity, confidence, and legacy.
Conclusion
Exit planning is often overlooked in the busyness of daily operations, urgent decisions, and client demands. But if you pause and look beyond today, you’ll realize:
Your business is not just an income source. It’s the culmination of your life’s work, sacrifices, prayers, and faithfulness.
Your business is not the end goal. It’s a tool, powerful one, meant to bless your family, employees, community, and kingdom purposes.
Your exit is inevitable. The only question is whether it will happen on your terms, in a way that protects what you’ve built and honors the people you care about most.
As Christian business owners, we are called to be wise stewards of what God has entrusted to us. That includes not only how we operate our businesses today but how we transition them for tomorrow.
The business is the tool – but proper stewardship building a positive legacy is the ultimate goal.
Let's Connect
If you’ve been feeling overwhelmed, uncertain, or simply curious about your next chapter, now is the time to act.
Imagine having clarity about your goals.
Imagine knowing exactly what your business is worth and how to grow its value.
Imagine a clear, step-by-step roadmap that integrates your faith, family, finances, and business into a confident exit strategy.
That is what exit planning provides.
Schedule Your Free Exit Readiness Consultation Today
At Dominion Business Advisors, we help business owners like you build businesses that bless beyond the bottom line. Together, we’ll walk through where you are today, where you want to go, and what it takes to get there, so you can exit your business on your terms and leave a legacy that lasts.
Final Encouragement
Remember, you were never meant to do this alone. Let us walk alongside you in building a plan that brings clarity, confidence, and legacy for the next season of your life and leadership.
*Dominion Business Advisors LLC provides strategic business consulting and exit planning services. We do not provide legal, tax, or investment advice. Information in this article is for educational purposes only and should not be construed as specific advice for your situation. Please consult your attorney, CPA, and financial advisor before implementing any exit planning strategies.
