Preparing your business for sale: Insights on exit planning with Simon Bedard

Today we’re diving into a critical topic that many business owners overlook—your exit plan. After pouring years of passion and energy into your business, have you thought about how you’ll eventually move on? Simon Bedard is a seasoned expert with over 20 years of experience guiding owners through the exit process and author of "Exit Like an Expert." Bedard reveals why the biggest challenge in selling a business isn’t the market, but lack of preparation—only 20 to 30 per cent of businesses that go to market actually sell. So, we’ll explore the mindset shifts needed, the importance of planning ahead, common pitfalls to avoid, and strategies to maximise the value of your business when it’s time to say goodbye. Whether you’re thinking about selling soon or just want to prepare for the future, this episode is packed with essential advice on creating a smooth and rewarding exit. Timestamped Overview 00:00 Why business owners need exit plans 05:39 Closing down a small business 08:56 Reducing owner dependence 10:15 Making a business attractive to buyers 16:17 Types of buyers explained 17:09 What buyers look for 20:41 Advice for selling a business 25:44 Preparing your business for sale 29:16 Seller remorse and post-exit regret 33:03 Preparing for a business exit 34:27 Closing and next steps Key topics 1. Exit Planning for Business Owners Many business owners neglect to plan their exit, leading to complications or missed opportunities when it’s time to move on (00:15, 05:02). Only about 20-30% of businesses that go to market actually sell, largely due to lack of preparation (00:37, 02:23). Starting exit planning early gives owners more control over outcomes and allows for smoother transitions (05:04, 22:39). 2. Risks and Challenges in Selling a Busines Smaller businesses are harder to sell due to higher risks and difficulties obtaining funding (02:45, 02:55). Owner dependence—when the business relies heavily on the owner—makes transition difficult for buyers (09:05, 09:40). Concentration risk, such as relying too heavily on one customer or supplier, can lower the business’s value and turn buyers off (11:57, 19:02). 3. Buyer Perspectives and Value Drivers Buyers are primarily interested in the future earning potential of a business, not just its past success (17:00, 18:00). Strategic buyers look for synergies, like technology, IP, or key clients that fill gaps in their own business (15:49, 16:10). Factors like recurring revenue, diversified client base, and robust operational systems are attractive to buyers (11:02, 18:00, 18:21). 4. Emotional Aspects of Exiting Many owners feel emotionally attached to their businesses, which can lead to “seller’s remorse” or failed deals at the last minute (14:36, 29:16). Some owners prioritize legacy and the future of their employees or business mission over getting the highest price (14:49, 13:49). Planning for life after business—having purpose or activities lined up—helps avoid existential crises post-exit (30:44, 31:13). Learn more about your ad choices. Visit megaphone.fm/adchoices