Most founders think about exit planning only when the finish line feels close. You’ve built the business, scaled the revenue, and suddenly the idea of selling or stepping back feels real. But here’s the uncomfortable truth: waiting until you want to sell is often too late to get the value you deserve.

That’s why an exit assessment isn’t just for owners ready to list their business today. It’s a strategic tool that belongs in your playbook years - sometimes decades - before you plan to exit.

The Myth of “Not Yet”

One of the biggest traps entrepreneurs fall into is the mindset of “I’ll deal with that later.” You know the one:

“I’m not ready to sell yet, so why bother?”

“I’ll start thinking about valuation when I’m closer to retirement.”

“Right now I just need to focus on growth.”

The problem? Buyers don’t only look at your revenue or customer base. They dig deep into how your business runs, where the risks lie, and how transferable your success is without you at the center.

An assessment shines a light on all of this - long before you’re at the table negotiating.

What an Assessment Actually Does

Think of an exit assessment like a health check-up for your business. Just like you wouldn’t wait for a medical crisis to start caring about your health, you shouldn’t wait for a buyer to point out weaknesses you could have fixed years earlier.

A strong assessment looks at

• Value drivers: What makes your business worth more (brand strength, recurring revenue, systems, customer relationships).
• Risk factors: What makes a buyer nervous (overreliance on the founder, single big client, outdated processes, lack of governance).
• Market position: How your company stacks up against others in your sector.
• Transferability: How easily your business can run without you.

When you see these results early, you can actually do something about them instead of being forced to accept a haircut on your valuation later.

Why Timing Matters

Perhaps ironically, the best time to prepare for an exit is when you have zero intention of selling.

Why?

Because you’re in control. You’re not under pressure from illness, burnout, market downturns, or declining results. You’re able to take your time fixing weak spots and investing in the areas that build value.

Waiting until you have to sell flips the power to the buyer. They know you’re cornered. And the deal structure will reflect that - often with lower multiples, less cash up front, and more earnouts that favour them, not you.

Think of It Like Credit

April Harbottle put it perfectly in her conversation with me: exit planning is like applying for a line of credit. The best time to secure it is when you don’t need it. Because when you’re in crisis mode, the bank won’t lend.

The same applies here. Buyers are far more enthusiastic when your business is thriving, your books are clean, and you’re choosing to sell - not forced to.

The Upside Beyond Selling

Even if you don’t plan to exit for years, an assessment is still valuable because:

• It forces you to run a stronger, less fragile business.
• It gives you peace of mind knowing your company is ready if circumstances change.
• It positions you for optionality - whether that’s selling, bringing on investors, or transitioning ownership to employees.

Think beyond “selling”. Think instead about building a business that holds value, runs smoothly, and doesn’t fall apart without you.

Exit planning is a process. An assessment is the first step in that process, and it should happen long before the word “exit” is even on your lips.

If you care about protecting the value you’ve worked so hard to build, don’t wait until you’re ready to sell. Start with an assessment today. Because the only thing worse than being unprepared for an exit is realizing - too late - that your years of work won’t pay off the way they should.

Want Help Planning your Own Exit?

I offer a complimentary 1:1 Wealth Gap Analysis to help you bridge the space between your business and your financial freedom. It’s a strategic conversation to ensure your exit supports your long-term wealth.

Email me or connect on LinkedIn to book your session.

TTFN - ta-ta for now!

Colleen

*RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. â / ™ Trademark(s) of Royal Bank of Canada. Used under licence. © RBC Dominion Securities Inc. 2024. All rights reserved*