Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

September 29, 2020

A Guide on Creating a Business Exit Strategy from the Start

By Achim Neumann

You have just started a new business. You are deeply passionate about serving your customers and providing them with the best products and services money can buy. Working out a plan for how to exit the business is the last thing on your mind amid your boundless optimism and enthusiasm.

Most people who go into business for the first time make a simple mistake: failing to create a business exit strategy. While it is true that an exit plan might materialize as your business grows and develops, it is always a much better idea to have a road map to your eventual exit clear in your mind from the beginning.

A key advantage to a clear exit plan is that it will be easier to get investors on board from the beginning. Top business minds love a business plan that demonstrates how they will end up with a return on their investment.

Potential Exit Strategies

There are several potential ways that you can exit your business:

If you own your business outright and do not have to answer to investors, the simplest way to prepare the ground is to raise your personal income from the business in the years before you sell. This will allow you to gather together a good deal of savings before you eventually sell or close the business.

If you own a larger company that is growing rapidly, you may one day look to get it listed on the stock market. Once your business is publicly listed, it will then be possible for you to sell your shares when the time comes to make an exit. Company management will then select a new leader and proceed without you.

Another exit strategy may be to sell your company to another company or entrepreneur, possibly in the same industry. To do this, you may need to contract the services of an experienced M&A Advisor and / or Business Broker to find suitable buyers for your company’s profile.

Whenever you plan to bring an end to your time in charge of your company, whether it is in two years or 20, planning for it now will make things easier in the long run. Here are some steps that you can take to prepare the way for your eventual exit.

Step 1: Make the Company Self-Sufficient

Among the largest obstructions to a smooth exit is a company that has become over-reliant on its founder. We commonly see businesses that cannot function without their owner — after all, the owner is the one whose initial passion and vision have made the company into what it is today.

As your company grows, it is often a good idea to bring in a CEO. Resist the temptation to become the CEO yourself. Independent leadership is important to bring in new ideas and help the company to become more independent from your influence.

It is important to build work teams and ensure that the company is not synonymous with your name among the customer base. This way, when it comes time for you to leave, the company will be capable of running smoothly in your absence.

Step 2: Keep Detailed Financial Records

One of the biggest challenges when a business owner wants to sell their company is organizing the financials and documentation. To help ensure the process passes without a hitch, aim to keep detailed financial records from the very beginning of your time in charge.

If your exit strategy involves selling the company, set up a mechanism for creating and storing these documents immediately. A company whose finances are in order is much more attractive to potential buyers.

Step 3: Keep Your Cards Close

Broadcasting your exit plan is a sure way of sowing disharmony and uncertainty among your employees and customers. Customers and partners will be reluctant to trust you, and employees may not work to their full potential for an owner who is uncommitted to the long-term success of the business.

When planning your exit, make sure that you do it discreetly to keep things as close to normal as possible as your final days approach. Confidentiality is everything.

Are You Ready to Sell Your Business?

If you have decided to exit your business by selling it, we can help. A. Neumann & Associates, LLC, has a wealth of experience from over 15 years in business when helping market businesses for sale, qualifying buyers and negotiating the terms of a sale.

If the time has come to implement your exit plan and sell, contact us for more information!


About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or

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Client Testimonials

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs
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Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

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