How To Create a Premium Exit Strategy, Boost Business Value, and Prepare For a Profitable, Smooth Business Sale
Co-Founder and Managing Director Channing Hamlet recently spoke at two Exit Planning Institute events, in San Diego and Orange County, sharing his expertise on what it truly takes to create a premium exit strategy. His insights revealed the key steps business owners should take to maximize sale value, avoid common pitfalls, and position their companies for a smooth transition.
Whether you’re looking to sell in the near future or are years away from an exit, these strategies can help you secure a higher purchase price and keep more money in your pocket.
Why Transferability Is the Hidden Driver of a Successful Exit
One of the most overlooked aspects of business exit planning is transferability: the ability for a buyer to purchase your company and operate it successfully without you.
Buyers pay more for businesses with strong leadership teams, documented processes, and a track record of performance independent of the owner. For example: If the seller personally drives 80% of sales and plans to exit, the buyer won’t value that growth in their offer.
Key takeaway: The more transferable your business is, the easier it is to sell, and the more likely you are to get a premium valuation.
The Four Pillars of a Premium Business Exit
Channing outlined the four primary components that every business owner should address to maximize valuation and reduce deal risk:
- Optimal Tax & Entity Planning
The way your business is structured, and your approach to tax planning, directly impacts how much you keep after the sale. Early tax strategy, estate planning, and reviewing your entity structure can save you millions. - Personal Financial Plan
Selling your business means parting with your primary source of income. Develop a clear plan for how the sale proceeds will support your lifestyle, investments, and future goals. - Legacy Planning
Decide what comes next for you, your family, and your community. What will your personal and professional legacy look like after you sell? - Preparing the Business for Sale
Identify and strengthen your key value drivers. Fix operational inefficiencies, reduce dependencies, and ensure your company is market-ready before you go to market.
The Cost of Not Preparing
Channing warns that most business owners fail to appreciate the level and depth of planning needed to achieve a premium transaction.
Proactive planning allows you to:
- Maximize business value
- Reduce the risk of issues that impact deal value and structure
- Attract stronger offers from better-fit buyers
Start Planning Your Exit Now
Even if you don’t plan to sell for several years, taking these steps early gives you more control over the process and the outcome.
Frequently Asked Questions About Exit Planning
Q1: What is transferability in exit planning?
Transferability means the business can operate successfully without the current owner’s direct involvement. This includes having strong management, documented processes, and diversified customer relationships.
Q2: How can I increase the sale price of my business?
Focus on building transferability, strengthening value drivers, improving financial performance, and addressing operational risks before going to market.
Q3: Why is tax planning important when selling a business?
Proper tax planning can dramatically impact your net proceeds after the sale. The right entity structure, estate planning, and timing can reduce tax liabilities and increase take-home value.
Q4: When should I start preparing my business for sale?
Ideally, 3–5 years before you plan to sell. Early preparation gives you time to fix weaknesses, strengthen value drivers, and optimize your financial and tax position.
Q5: What are value drivers in a business sale?
Value drivers are elements that make your business attractive to buyers such as recurring revenue, strong customer relationships, a capable management team, and scalable operations.
Want a personalized exit strategy?
Contact Channing Hamlet to create a tailored roadmap to a successful sale, with actionable steps to increase your company’s value and position it for a premium purchase price.
About The Author
Co-Founder and Managing Director
Life Sciences & Business Services Practice Leader
Channing Hamlet has over 25 years of experience in investment banking and business valuation, advising middle market companies on transactions and strategic initiatives. Before joining Objective, he was a Managing Director at Cabrillo Advisors, where he led M&A execution and built a national valuation practice. He previously held roles at Vistage, LLR Partners, and Legg Mason. Mr. Hamlet holds a Master’s Degree in Operations Research and a Bachelor of Science in Mechanical Engineering from Cornell University.
Disclosure
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
