When Should You Start Planning Your Business Exit?
Key takeaways
- •Start exit planning 1–3 years before you intend to sell — earlier for larger or family businesses.
- •Early planning lets you fix value killers while you still have time.
- •Tax structuring, including LCGE eligibility, often requires advance setup.
- •Planning early gives you the option to sell on your terms, not under pressure.
Why timing changes the outcome
Owners who plan their exit years ahead consistently sell better than those who decide to sell and list the next month. The reason is simple: most of what makes a business valuable — and most of what saves tax — can only be changed with time.
Exit planning isn't about deciding to sell tomorrow. It's about making sure that whenever you do sell, the business is ready and you keep the most of what you've built.
What early planning lets you fix
Given one to three years, you can address the factors that most affect price.
- Reduce owner dependence so the business runs without you.
- Clean up and normalize financials so they survive due diligence.
- Grow recurring revenue and reduce customer concentration.
- Build a management layer that will stay through transition.
- Structure the company for tax efficiency, including LCGE eligibility.
The cost of waiting
Owners who wait often sell under pressure — a health event, burnout, a partnership breakdown, or a market shift. Selling from a position of need rather than choice almost always costs money, because buyers can sense urgency and you have no time to fix weaknesses.
Even if you have no intention of selling soon, an early conversation and a baseline valuation cost little and give you a roadmap. The owners who get the best outcomes are the ones who treated their exit as something to build toward, not react to.
Frequently asked questions
About the author
Ali Sedighi, MBA, is the founder of BizSell.ca, a confidential business brokerage and M&A advisory serving British Columbia in five languages. He leads every engagement personally, from valuation through close.
This article is general information for business owners, not legal, tax, or financial advice. Rules and figures change — confirm specifics for your situation with a qualified professional.