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# Why start planning months before your business exit?
- URL: https://blog.sellingyourcanadianbusiness.com/why-start-planning-months-before-your-business-exit/
- Published: 2022-10-26T13:51:57.000Z
- Updated: 2026-08-14T18:56:21.000Z
- Description: Seven reasons a 24-month runway before exit maximizes value, from fixing financial issues and building a leadership team to structuring the sale tax-efficiently.
- Author: Karl E. Sigerist, Jr., ICD.D
- Tags: Articles Sell-Side, #review-paused-too-similar, #review-excerpt-missing-2026-08-14

Why should you start planning 24 months before your business exit?

When it comes to selling a business, timing and preparation are everything. Waiting until the last minute can significantly reduce value and complicate the sale, while starting 24 months ahead ensures a smoother transition and maximizes your return. Seven reasons make the case for an early start.

1\. Maximize value through strategic improvements — a longer runway lets you optimize operations, cut unnecessary costs and invest in revenue growth before going to market

2\. Fix financial and operational issues — messy books or inefficiencies take time to correct; resolving them early raises value and smooths buyer due diligence

3\. Build a strong leadership team — buyers hesitate to buy owner-dependent businesses, so delegate key responsibilities and reduce your day-to-day involvement

4\. Understand the tax implications — structure the sale tax-efficiently using strategies like the Lifetime Capital Gains Exemption (LCGE) or an earn-out, which need time to implement

5\. Secure financing and evaluate buyers — give buyers time to arrange funding and vet multiple options, potentially driving up the price and ensuring the right fit

6\. Manage your emotional transition — mentally prepare for stepping away and plan what your post-sale life will look like

7\. Avoid a last-minute rush — being proactive rather than reactive lets you make deliberate decisions and address surprises before they become obstacles

Key facts: planning 24 months before exit

Start about 24 months ahead to maximize value and smooth the sale  
Early runway lets you improve operations, clean up financials and reduce owner dependence  
Tax planning (LCGE, earn-outs) requires time to implement effectively  
Early start allows vetting multiple buyers and managing the emotional transition

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Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.