These are the most common questions business owners ask about exit planning. Every answer is based on our experience working with growth-stage companies doing $1M to $50M in revenue.
Frequently Asked Questions
When should I start exit planning?
Start exit planning 3-5 years before you want to exit. The businesses that sell for the highest multiples are the ones that have been optimizing enterprise value systematically for years, not the ones that decide to sell next quarter. Even if you are not planning to sell, exit planning makes your business more valuable, more resilient, and more enjoyable to run.
What is a value gap analysis?
A value gap analysis compares your current enterprise value to your potential enterprise value and identifies the specific changes that would close the gap. It evaluates eight value drivers: revenue growth, profitability, customer diversification, recurring revenue, team depth, systems and processes, competitive moat, and market position.
What reduces the value of my business?
The biggest value killers are owner dependency (business cannot run without you), customer concentration (one customer is 20%+ of revenue), lack of recurring revenue, no documented processes, key person risk, deferred maintenance, and unclear intellectual property ownership. Each of these reduces your multiple by 0.5-2x EBITDA.
What is owner dependency?
Owner dependency means the business cannot function without the owner for more than 30-90 days. If you hold key client relationships, make all major decisions, or are the primary salesperson, buyers see that as risk and discount the valuation. Reducing owner dependency is the single highest-impact action most founders can take to increase enterprise value.
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Exit Planning: Common Questions Answered
This FAQ collection answers the questions WETYR receives most often about exit planning. Each answer is written by operators who have lived the work — not lifted from generic advisor templates. Owners and operators who read these FAQs end up walking into their next conversation with WETYR (or with any advisor) substantially better prepared, which is the goal. Better-prepared clients reach better outcomes. We give the answers away because that compounds trust.
The questions cover the practical side of exit planning — pricing, timeline, who-does-what, decision frameworks, and the trade-offs that aren't covered in generic content. If your specific question isn't on this page, the right next step is either the relevant long-form guide or a direct call with our team. We respond to every inbound inquiry within one business day.
When To Engage An Advisor
The general rule for exit planning: engage an advisor 12-24 months before the transaction window if you have flexibility, or as soon as possible if the window is shorter. Owners who engage 6+ months out routinely receive premium offers; owners who engage 30 days out routinely accept whatever the buyer puts on the table. The pre-engagement diagnostic is where most of the leverage is created.
For exit planning-specific work, WETYR runs both advisory engagements and operator-buyer engagements. The right structure depends on whether you want a counterparty who closes the deal directly or an advisor who runs a structured process. Both have their place. The free diagnostic call is the cleanest way to figure out which fits your situation.
Authoritative Sources & Further Reading
WETYR works alongside primary sources, regulators, and industry data providers when advising owners and operators. The references below are the same sources our advisory team uses when modeling deals, benchmarking multiples, and stress-testing assumptions. We encourage every owner, buyer, and operator to verify any data point that materially affects their decision against the underlying primary source.
Primary Federal Sources
- U.S. SBA — 7(a) Loan Program for acquisition financing eligibility, terms, and lender list.
- SEC EDGAR for public-company comparables, 10-K disclosures, and recent strategic acquirer filings.
- IRS — Sale of a Business on Section 1060 asset-allocation reporting and tax treatment of asset vs stock sales.
- U.S. Bureau of Labor Statistics — Industries at a Glance for wage, employment, and growth data by NAICS code.
- U.S. Census Economic Census for industry size, firm counts, and revenue distributions.
- Federal Reserve Economic Data for prevailing rate environment underwriting.
Standards & Reference Bodies
- AICPA for Quality of Earnings methodology and CPA standards governing transaction-related financial work.
- FINRA Rules and Guidance for understanding when a transaction crosses into broker-dealer territory.
- NACVA business valuation credentialing body and standards (CVA designation).
- USPAP — Uniform Standards of Professional Appraisal Practice for valuation engagement standards.
- Investopedia — EBITDA reference page for definitional alignment with our glossary.
- Harvard Business Review — Mergers and Acquisitions archive on integration and post-close value creation.
For deeper transaction-specific data, the GF Data and PitchBook private-company transaction databases publish quarterly multiple ranges by industry size band that we cross-reference against our own pipeline benchmarks. Owners considering a sale should also review the Pepperdine Private Capital Markets Report (free, annual) for current cost-of-capital and lender appetite data across the lower middle market. Buyers underwriting search-fund or holdco theses commonly pair Stanford GSB's Search Fund Study with the IBBA Market Pulse report, which tracks multiples for sub-$50M transactions quarterly. None of these sources replace deal-specific advisory, but they give owners and operators the same reference points professional acquirers are using on the other side of the table.
Related WETYR Resources
Every WETYR resource ladders into a structured engagement framework. Whether you are diagnosing readiness, modeling a number, or preparing for a specific transaction phase, the resources below cover the most common owner and operator workflows. All tools are free; all guides are operator-written; all engagements start with a confidential conversation.
Engagement Pillars
Decision Tools
Operator-Written
Glossary & FAQ
Checklists & Templates
Niche Coverage
If you are not sure where to start, the Exit Readiness Score takes about four minutes and produces a one-page diagnostic on the value drivers most likely to compress your multiple. From there the natural next step is either a long-form guide covering your specific situation, a focused glossary term lookup, or a confidential introductory call with our team to discuss whether WETYR's advisory or operator-buyer engagement is a fit. Our team responds to every inbound inquiry within one business day.