Business exit planning checklist
Work through this before a buyer appears. Bring the unanswered items to your CPA, attorney and advisor.
Objectives
- Have you decided between a third party sale, family transfer, management buyout and gradual withdrawal.
- Do you have a target timeline, and is it realistic given the company's current condition.
- Have you defined what the proceeds must produce as income for the rest of your life.
- Do you know what you will do with your time after closing.
Tax and structure
- Has your CPA modeled the estimated after tax proceeds under likely deal structures.
- Do you understand how purchase price allocation would affect your result.
- Have you confirmed which planning approaches close once a letter of intent is signed.
- Has your entity structure been reviewed against the intended transaction.
- Have state tax consequences been considered, including residency.
Business readiness
- Could the business operate for ninety days without you.
- Are financial statements clean, current and defensible under diligence.
- Are key customer and supplier relationships documented rather than personal.
- Are key employees likely to stay through a transition.
- Are contracts, leases and intellectual property properly documented and assignable.
Personal planning
- Are your estate documents current and consistent with beneficiary designations.
- Is there a plan if you become disabled before the sale completes.
- Is your buy sell agreement funded and based on a current valuation.
- Have you considered what the proceeds mean for your legacy objectives.
The team
- Transaction attorney engaged.
- CPA engaged for forward looking modeling, not only compliance.
- Business broker or M&A advisor selected.
- Independent valuation obtained where appropriate.
- Someone responsible for keeping your personal objective visible throughout.
Important disclosure
This content is general education, not legal, tax or investment advice, and not a recommendation of any specific product. Suitability depends on individual facts, product terms, issuing company strength and current law. Consult your own licensed legal and tax professionals before acting.
Last reviewed 2026-08-09 by Tim Parnell.
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