Secure Your Legacy and Climb to Your “Top of the Mountain”
By Chris Jones, Chief Exit Officer, Sunbelt Business Advisors and True North M&A
I still remember the day my uncle got the news. He was the kind of guy who filled up a room, with a big barrel laugh and a big heart. He’d built a successful logistics and trucking company from scratch. But like so many business owners, he focused on the day-to-day grind, rarely pausing to think about what might come next. Going to the doctor was always “something he’d get around to.” When he finally did, it was stage four cancer. Six months later, he was gone.
What came next was hard to watch.
Without a plan, his business—the thing he’d poured his life into—fell apart as fast as it had grown. A legacy he’d spent decades building vanished in a matter of months. It didn’t have to be this way. If he’d had an exit plan, things could have looked very different.
For over 20 years, I’ve been working in the mergers and acquisitions space, helping business owners—especially manufacturers here in Minnesota—prepare for one of the biggest transitions of their lives.
Many business owners will ask me: When should I start thinking about an exit plan?
My answer is always the same: It’s never too early. Starting now gives you the freedom to build your future on your terms, rather than scrambling for options down the road.
Here’s how to start planning your exit.
Step 1: Determine what your version of “success” looks like
Around 85% of most business owners’ net worth is tied up in their company. This means that deciding to sell isn’t just a business choice—it’s a deeply personal one that impacts your family, your future, and often, your sense of identity.
That’s why the first step of exit planning starts with asking a simple but profound question: What does the “top of the mountain” look like for you?
For most of our clients, the goal is a smooth transition into retirement; a chance to “sail off into the sunset.” Here are a few visions of what a “good” exit plan might look like:
- Spending more time with family.
- Giving back to the community.
- Pursuing lifelong passions.
- Traveling or purchasing a vacation home.
- Mentoring the next generation.
- Investing in other businesses.
- Launching a new venture.
At the risk of sounding trite, I want to encourage you to really think about this; write it down now if you have a pen and paper handy. What will your life look like after you sell your business? Where will you live? What will you be doing in your free time?
Whatever your “top of the mountain” looks like, we encourage you to dream boldly and plan carefully. Taking the time now to clarify your goals ensures that when the time comes, your exit will feel both rewarding and intentional.
Step 2: Assess Your Financial Readiness
Once you’ve clarified what success looks like for you, the next step is understanding what it will take to fund that vision. Think of this as laying out a financial roadmap to your “top of the mountain.” Having a clear picture of your financial readiness will not only give you confidence but also guide any steps needed to reach your target.
This is where consulting with a financial planner can be helpful. They can help you map out your anticipated expenses, lifestyle goals, and any potential investments you’d like to pursue post-exit. With a financial professional, you can discuss questions like:
- How much do I need to sell my business for to meet my goals?
- How much do I have in other assets that can fund these goals?
- What other income sources do I have or need to create?
Step 3: Get a Professional Valuation
Despite the fact that most of your net worth is likely tied up in your business, many owners don’t have an accurate idea of what their business is truly worth until they decide to sell it. If you are like most business owners you spend a lot of time with your tax advisor to mitigate taxable income. This creates a big problem when you are ready to sell. When you sell you need to make it easy for the buyer to see the earning power of your business, therefore work must be done to normalize the financials. Even once you understand the normalized earning power of your business, quick online calculators simply don’t capture the whole picture. At Sunbelt and True North, we provide complete, detailed analysis to ensure you understand the probable sale price of your business and can make informed decisions about your future.
Once we know the current value of your business, we can help you make a plan for growth. For example, if you need your business to be worth $5 million in order to reach your “top of the mountain”, but it’s currently worth $4 million, we’ll help you navigate how to get that number up before you’re ready to sell.
In addition to understanding your business's value you should also understand its Value Drivers. Buyers pay more for growth opportunities and they discount for risk. By assessing your Value Drivers you’ll quickly understand your company’s strengths and weaknesses. We recommend scoring your company at least once a year. In the example below, a positive score supports an above average or even premium price. Conversely, companies with a negative score are more likely to receive a below average price.
For those looking for additional resources, we recommend the Poised for Exit podcast, an invaluable guide for business owners preparing for the transition process. Hosted by Julie Keyes, the Poised for Exit podcast offers real stories, expert insights, and practical advice on exit planning, helping you understand your options and make choices that align with your goals.
We also recommend watching our video series 24 Rules for Successful Business Exit.
How Sunbelt and True North Can Help
Sunbelt Business Advisors specializes in “Main Street” businesses, typically those with under $10 million in annual revenue. If your company fits this profile, Sunbelt’s team can help you explore buyer options, whether that’s a strategic buyer, or a high-net-worth individual. We’re here to ensure a smooth, personalized transition.
True North Mergers and Acquisitions serves businesses in the lower middle market, typically generating between $10 million and $150 million in revenue. These “M&A” transactions are often more complex and may involve private equity groups or large strategic buyers. With True North, you’ll have a dedicated team experienced in positioning your business for the best possible outcomes, offering guidance tailored to the intricacies of larger transactions.
Whether we recommend a Main Street approach or an M&A approach our goal is the same: help business owners maximize their life’s work when they are ready to exit.
What You’ll Gain from Reaching Out
By connecting with an advisor at Sunbelt or True North, you’re gaining a trusted partner who understands both the value of your business and the significance of the legacy you’ve built. Our advisors provide:
- An accurate valuation of your business, giving you a complete picture of its worth.
- Step-by-step guidance through the sale process, helping you avoid potential obstacles and ensuring a successful transition.
- Confidence and peace of mind, knowing you’re supported by Minnesota’s largest seller of companies with a track record of helping business owners achieve their exit goals.
Whether you’re ready to begin the transition or simply exploring your options, Sunbelt and True North are here to help you secure a future that aligns with your dreams and goals.
