St. Augustine Business Owner’s Complete Exit Planning Checklist
Exit planning is not something that happens the week before you decide to sell. It’s a process that ideally begins one to three years before you want to close a deal. Ryan Winter, a business broker serving St. Augustine and Northeast Florida, has developed the following checklist based on his experience helping business owners prepare for the most important transaction of their professional lives.
Financial Preparation
Get three years of clean, accurate profit and loss statements prepared by your accountant. Reconcile any differences between your tax returns and internal financials. Document all owner add-backs clearly, salary, personal vehicle, health insurance, and any one-time expenses that won’t carry over to a new owner. If you’ve been running personal expenses through the business, start separating them now. The cleaner your books, the stronger your valuation.
Operations and Systems
Document your core operating procedures in writing. Create an employee handbook if you don’t have one. Ensure key knowledge is not trapped in your head or in one person’s head. Cross-train staff on critical functions. A buyer needs to believe that the business will continue to run smoothly after you leave. Ryan Winter recommends thinking of this as building an operations manual that could get a new owner up to speed in 90 days.
Customer and Contract Review
Review all customer contracts and service agreements. Identify which clients represent significant concentration risk (one client = more than 15–20% of revenue). Take steps to diversify where possible, or document those relationships in a way that demonstrates their stickiness. Buyers will scrutinize your customer base carefully, the more diversified and contracted your revenue, the stronger your position.
Legal and Administrative
Ensure your business entity is in good standing with the state of Florida. Review your lease and note expiration dates and renewal options, a favorable lease is a significant asset. Make sure all licenses and permits are current and transferable. Address any outstanding litigation or disputes before listing. Organize all vendor contracts, supplier agreements, and intellectual property documentation.
Team and Talent
Evaluate your team honestly. Do you have key employees who are essential to operations? Consider retention agreements to keep them through the transition. Make sure compensation is documented and market-rate. A stable, experienced team is one of the most valuable things you can offer a buyer.
Personal Financial Planning
Before you sell, work with a financial advisor to understand what you need from the sale to achieve your personal financial goals, retirement, reinvestment, or otherwise. This informs your floor price and your negotiating position. Ryan Winter always recommends that sellers have this number clearly in mind before entering any negotiation.
Start Your Exit Plan Today
Ryan Winter offers free exit planning consultations to St. Augustine business owners at any stage of the process. Whether you want to sell in six months or three years, the best time to start planning is now. Call 904-735-8994 or visit ryancwinter.com/contact.
Related Reading
- Should I Sell My Business Now or Wait? How to Time Your Exit
- How to Sell a Business in St. Augustine, FL: What Local Owners Need to Know
- What Is My St. Augustine Business Worth? How to Get an Accurate Valuation
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