What are the five Ds of exit planning?
The five Ds commonly associated with exit planning are death, disability, divorce, disagreement, and distress. These events can force an ownership transition before an owner is prepared. A well-developed exit plan addresses contingencies by documenting objectives, strengthening leadership continuity, clarifying ownership arrangements, and improving financial readiness so the business is better positioned if an unexpected transition becomes necessary.
What does exit planning mean?
Exit planning is the process of preparing a business owner and company for a future sale, recapitalization, succession, or other ownership transition. It combines business-improvement priorities with personal goals such as valuation, timing, liquidity, legacy, and employee continuity. Effective planning assesses buyer readiness early, allowing founders time to address risks and build a more credible institutional-quality asset.
When should I begin exit planning?
Begin exit planning as early as possible, ideally several years before a desired transaction. Earlier preparation provides time to reduce founder dependency, improve financial reporting, document processes, develop management depth, and demonstrate sustainable growth. Even owners considering a transition within 6 to 12 months can benefit from a confidential assessment to understand buyer concerns, priorities, and realistic next steps.
What does an exit readiness diagnostic evaluate?
Exit Boston’s Seven Pillars diagnostic evaluates leadership and founder transition, growth opportunity, revenue quality, financial quality, margins and operational efficiency, systems and scalability, and team incentives and retention. The review is designed to identify the strengths and gaps that institutional buyers may examine. It produces an execution plan focused on improving readiness and supporting a maximum-value exit strategy.
How do you identify the right buyer for my business?
The buyer-identification process uses industry research, competitive analysis, acquisition criteria, target-buyer profiling, and precedent transaction analysis. Exit Boston evaluates potential private equity firms, strategic acquirers, family offices, and other qualified parties for strategic fit. Defining the buyer universe before going to market helps tailor positioning, focus outreach, and create a more competitive acquisition process around the company’s strengths.
Can exit planning help improve company valuation?
Yes. Exit planning can improve how buyers perceive value by addressing the drivers behind valuation rather than relying solely on a current financial snapshot. Common priorities include reliable reporting, recurring or diversified revenue, durable margins, scalable systems, leadership depth, and credible growth opportunities. Improvements must be substantiated, but proactive preparation can make the business more understandable and attractive to qualified buyers.
What information is kept confidential during a consultation?
Exit Boston states that information submitted through its consultation process is kept strictly confidential and is not shared with third parties without explicit consent. A confidential discussion can cover approximate revenue, potential exit timing, ownership-transition objectives, business quality, valuation improvement, and buyer readiness. This allows founders to explore options and develop an initial strategic roadmap before deciding whether to pursue a transaction.
Who is a good fit for exit planning advisory?
Exit planning advisory is particularly useful for founders and private owners of established middle-market companies considering a sale, recapitalization, succession plan, or internal ownership transition. Exit Boston typically works with businesses generating approximately $10 million to $100 million in revenue and $2 million to $10 million in EBITDA. Owners who want to improve readiness before engaging buyers can benefit most.