From Control to Closure: 4 Business Exit Gut-Checks That Can Make or Break Your Transition
Before you hand over the keys to your business, make sure you’ve thought through the four pillars that truly define exit readiness.
At WealthCo, we believe a successful business exit is measured by more than just a sale price. It’s about clarity, control, and confidence across the four core pillars of transition: Financial Readiness, Personal & Emotional Readiness, Succession & Exit Strategy, and Legacy & Estate Planning.
If you’re thinking about stepping away from your business—whether this year or five years from now—these four questions will help you determine just how prepared you really are.
1. Are You Financially Ready for Life After Business?
Exiting your business often marks the end of your primary income stream. The question isn’t just “Can I sell?”—it’s “Can I afford to?”
A detailed financial plan can help answer:
Will the proceeds from the sale support your retirement goals, lifestyle, and family commitments?
How will the deal be taxed—and how much will you keep?
Are there tax deferral strategies or holding company structures you should consider?
Can you optimize your eligibility for the Lifetime Capital Gains Exemption (LCGE)?
Why it matters: Your exit is only as successful as your ability to maintain—and grow—your wealth on the other side.
2. Are You Personally and Emotionally Ready to Let Go?
For many entrepreneurs, stepping away from the business means stepping away from a key part of their identity. Are you prepared for that shift?
Do you have a vision for your next chapter—whether it’s retirement, reinvention, or something in between?
Are you comfortable handing over control?
Is your family aligned with your decision?
Do you know how you’ll find purpose beyond your business role?
Why it matters: A sale is a transaction. An exit is a transition. Your readiness has to go beyond the numbers.
3. Is There a Clear Succession or Exit Strategy in Place?
Whether you plan to sell to a third party, transition to family, or orchestrate a management buyout, you need a documented plan.
Do you know the most likely buyer—and what they’re looking for?
Have you defined the terms of sale (share vs. asset, cash vs. rollover)?
Have you done any sell-side due diligence to prepare for negotiations?
Have you addressed key-person dependencies, governance gaps, or operational risks?
Why it matters: Strategic exits don’t happen by accident—they happen by design. And they take time to get right.
4. Does Your Exit Protect the Legacy You Want to Leave Behind?
Exiting your business isn’t just about preserving your wealth—it’s about positioning it for future generations.
Have you updated your estate plan to reflect a sale or succession?
Are there trusts, freeze strategies, or gifting structures that should be considered?
If selling to family, have you explored the tax advantages under Bill C-208?
Are your philanthropic, charitable, or community goals part of the plan?
Why it matters: A thoughtful exit protects more than wealth—it protects what your wealth stands for.
Final Thought: Exit on Purpose
A successful transition isn’t just about getting out—it’s about setting up what comes next. When you assess your exit readiness through the lens of these four pillars, you gain clarity on your path forward and peace of mind that you’re leaving on the right terms.
If you're wondering how you score across these four pillars, reach out to your advisor. Our Exit Readiness Scorecard can help identify the gaps, so you move forward with confidence.
Disclaimer: The Exit Readiness Scorecard is a diagnostic tool designed to highlight potential gaps and areas of improvement across four key pillars of business exit planning. It is intended for informational purposes only and does not constitute a guarantee of business suitability, valuation, or transaction readiness. Outcomes may vary depending on individual circumstances and professional guidance. For a comprehensive assessment, consult with your advisor or a qualified expert.
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