What is the right age to think about selling your business?

At a glance

• Planning your business exit well in advance can significantly enhance its value and your negotiation leverage.
• Business owners over 50 are especially encouraged to begin exit planning to avoid rushed decisions that could lead to lower sale prices.
• A strategic, proactive approach to selling your business allows you to achieve a more favourable outcome on your terms.

The power of planning ahead

Too often, business owners wait until they’re ready to exit before putting serious thought into a sale. By then, it may be too late to implement changes that could increase the value of the business or to position it attractively for buyers. Selling a business isn’t like selling a car or a house - it often takes years to get everything in order.

To maximise your sale price, you need to be strategic:

• Start preparing at least two to three years before you plan to sell. This gives you time to build recurring revenue, strengthen management, and reduce dependency on you as the owner.
• Create systems, structures, and processes. Buyers typically look for businesses that can run without the founder involved in every decision.
• Get your finances in order. Clean, consistent financial records are essential. Ideally, you should have several years of clear, professional accounts showing steady performance.
• Make sure the business has a solid plan. Particularly if you are looking at a management buyout or employee-owned trust, make sure there is a plan for how the business will continue to thrive after you leave.

The earlier you start preparing, the more leverage you will have when it comes to negotiations –and the more attractive your business becomes.

At Elephants Child, we once worked with a client who initially tried to sell their business themselves. After collaborating on a business growth plan, we worked together to find a buyer for their business. Their original offer turned out to be the worst offer they had out of around 10 offers because they had gone into it unprepared. There then followed a five-month due diligence exercise, which the client found exhausting. but less daunting with a plan in place and preparations made ahead of time.

Similarly, we’ve worked with clients who have businesses that on the surface look sound and that the owner thinks are sound. But sometimes when you start to scratch below the surface, cracks and limitations become clear. Weaknesses and potential risks for new owners may include over reliance on a single customer, location-restricted growth, and knowledge of a key system sitting with only one individual – in cases such as these, the business is likely to be sold below its potential market value. When there is limited time to make improvements, the desired outcome of maximising sales value can be hampered.

Over 50? Don’t delay

Life circumstances –whether health, family needs, or simple burnout –can change quickly. Waiting too long might force you into a rushed sale, often resulting in accepting a lower price or less favourable terms.

By planning ahead, you give yourself more options. You can wait for the right buyer, time the market appropriately, and sell when your business is performing at its peak, not when you feel ready to give up.

A sale on your terms

The most successful business exits don’t happen by accident. They are the result of intentional, strategic planning. This process starts with a simple mindset shift: think of your business as an asset, not just a job.

No matter your age, the right time to think about selling your business is before you’re ready to leave it. But if you’re over 50, don’t wait. Start the conversation, map out your exit plan, and give yourself the time and flexibility to walk away with the reward your hard work deserves.

Need help preparing your business for sale or exploring what a well-timed exit might look like for you? Start planning now. Your future self will thank you. Get in touch to find out more.

Elephants Child Consultancy provide a consultative, analytic approach to leading, developing and implementing successful business strategies, and they are a corporate partner of St. James's Place.

The services provided by these specialists are separate and distinct to the services carried out by St. James's Place and include advice on how to grow your business and prepare your business for sale.

Where the opinions of third parties are offered, these may not necessarily reflect those of St. James's Place.

Business exit planning may include the referral to a service that is separate and distinct to those offered by St. James's Place.

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