Most business owners don’t think about what their business is worth until the moment they decide to sell or exit. However, understanding your business’ value and what it means for you as the owner should take place much earlier. The sooner you understand where you are and where you need to go for planning your next steps the better.

My business partner and I analyzed 10 years of sales data from our Transworld office, and the results are powerful. We have sold dozens of businesses, and we looked at the actual sales price vs. listing price against how long the business was on the market. There is a striking pattern here:

  • Businesses that sell in under 6 months sell on average at 95% of the list price
  • Businesses on the market longer than 6 months sell for about 84% of list
  • If a sale drags beyond 9 months, the final sales price drops even more

That gap isn’t just a timing issue—it’s a preparation issue. This also shows that pricing the business properly is key. A listing that is priced properly will sell quickly and sends a powerful signal to buyers:

  • The business is well-run
  • Financials are clean and credible
  • Revenue isn’t overly dependent on the owner
  • Risks are understood and managed
  • The seller has realistic expectations

When a business lingers on the market, buyers begin to wonder why. Over time, leverage shifts away from the seller. Negotiations become more aggressive. Price reductions follow. The seller may get distracted, and profitability suffers. Another factor is that businesses that languish tend to be overpriced based on what the owner needs from the sale vs. the true value of the business. In other words, time on market quietly chips away at value.

Exit Planning Shortens the Sales Cycle—and Protects the Price

Exit planning isn’t about selling tomorrow. It’s about positioning your business now so that when you decide to sell, your business is priced properly, you will have peace of mind on the value and buyers will be ready to move quickly and confidently. And if you don’t want to sell, you will create a more valuable asset for yourself.

A solid exit strategy will:

  • Identify and reduce value killers before buyers see them
  • Strengthen transferable systems and leadership
  • Improve financial clarity and predictability
  • Align the business with what buyers actually pay premiums for
  • Provide you, the owner, with a roadmap for what will come next

When those pieces are in place, deals move faster—and sellers are able to get a higher price for all their hard work. Whether you plan to sell in two years or ten, the earlier you prepare, the more control you keep over both timing and price.

Don’t Leave 15–20% on the Table

The difference between selling in six months versus nine (or more!) could cost you significant money. We can help identify the gaps that cause deals to drag, discounts to appear, and leverage to shift to buyers. On average, people who work with us improve profitability, which helps the owner now, are able to increase the value of their business an average of 56%, and when they do sell, it takes on average 5-6 months vs. 9 months or more.

Before the market decides your price, take control. Book a FREE consultation with us to discuss how we can work together to reach your business, personal and financial goals.