Exit Planning — David M. Ward
— Exit Planning

What is your business actually worth to a buyer?

Most business owners find out the answer at the worst possible moment — when they're already in negotiations. The work I do is about making sure you know the real number long before that moment arrives, and building a plan to close the gap.

2–8× Multiple range — same revenue The gap between an unprepared and a well-prepared business in the same industry
3–5 yr Typical runway needed To meaningfully move the value drivers that matter most to buyers
40% Average value increase For clients who begin preparation 3+ years before their target exit date

The Problem

The number in your head and the number in the marketplace are almost never the same.

Most business owners have a number. A figure they've carried around for years — sometimes based on a rough calculation, sometimes based on what they need it to be, sometimes based on what a friend's business sold for.

The marketplace doesn't know about that number. It values what it can verify: transferable revenue, documented systems, a management team that doesn't leave with the owner, and a client base that isn't concentrated in three relationships.

The gap between the owner's number and the market's number is the most common — and most expensive — surprise in business sales. The good news is that it's almost always closable. But only with enough runway.


What Buyers Are Actually Paying For

The eight value drivers that determine your multiple.

Buyers don't just buy revenue. They buy predictable, transferable, de-risked businesses. Here are the eight factors that move your number — and where most businesses have the biggest gaps.

01 — Owner Dependency

Can your business run without you?

What happens if you disappear for 90 days? If the answer is "it slows down" you have work to do. If the answer is "it falls apart" buyers will price that in heavily.

02 — Revenue Transferability

Does the revenue stay when you leave?

Is revenue attached to you personally, or to the business? Relationships that live in your contacts don't transfer. Buyers are paying for what stays after you walk out the door.

03 — Documented Systems

Does it run on process or on people?

Buyers pay for systems, not for key people. If your business only works because the right people show up every day, it's fragile. Documentation turns knowledge into transferable value.

04 — Client Concentration

How spread out is your revenue?

If your top three clients represent 60% of revenue, buyers see a liability not an asset. Diversified revenue across many relationships commands a premium at exit.

05 — Management Depth

Is there a team — or just a founder?

Buyers want to acquire a business, not a job that comes attached to the founder. A bench of capable leaders who can run the operation is one of the most valuable things you can build.

06 — Financial Clarity

Can you defend your numbers in due diligence?

Clean books, accurate records, a clear picture of true profitability. Not a mix of personal and business expenses — a number you can stand behind when the buyer's accountants arrive.

07 — Growth Trajectory

Which direction is the business trending?

Momentum matters. A business trending up gets a premium. A business trending flat — even a profitable one — gets a discount. Buyers pay for what's coming, not just what's here.

08 — Competitive Positioning

Is there something defensible here?

A niche, a reputation, a client base that would be difficult to replicate — these command multiples. Undifferentiated businesses compete on price. Positioned businesses don't.

Craftsman at work Precision. Patience. Built to last.
Free Resource

See how your business scores on all eight drivers.

The Exit Readiness Assessment walks you through each value driver and gives you a clear picture of where you stand. 13 minutes. No sales pitch.

Used by 80,000+ business owners No email required to start 12-page report delivered to your inbox
Take the Exit Readiness Assessment →

The Process

Working backwards from your exit.

Every engagement is different. But the sequence is consistent — because the questions that matter most are almost always the same ones.

Step 01

Discovery Call

30 minutes. I learn about your business, your timeline, and what you're building toward. I'll tell you what I see and what I'd prioritize. No pitch — just an honest conversation about whether there's a fit.

Step 02

Valuation Reality Check

We look at your business through a buyer's eyes. What would they pay today? What's driving the gap between that number and yours? Which value drivers need the most work in your timeline?

Step 03

Value Acceleration Plan

A specific, prioritized roadmap — what to focus on in the next 12, 24, and 36 months to move your multiple. Not generic advice. A plan built around your business and your exit window.

Strategic planning The work starts before the transaction.
"Real wealth is built in a concentrated fashion. You got wealthy by putting 80% of your net worth into one thing — your business — and building it. Every advisor who tells you to diversify immediately doesn't understand how you actually got here."
— David Ward, CFA, CEPA  ·  Brookside Strategy & Consulting