Episode•January 30, 2025•17 min

Why You Should Plan Your Business Exit Now with Adam Koos | Ep. 366

In this episode of Money Talk With Tiff, Tiffany Grant is joined by Adam Koos to discuss the often overlooked topic of exit planning for business owners. Adam emphasizes the importance of preparing for the eventual transition of one's business, whether that means selling it, passing it to a family member, or another form of exit. Adam shares that one of the biggest mistakes business owners make is starting too late on their exit strategy. He dives deep into what exit planning entails, how business owners can begin thinking about it regardless of where they are in their business journey, and the critical steps to take. From succession planning, valuation of the company, preparing for potential unplanned events such as illness or disability, to ensuring the business is scalable and attractive to potential buyers, Adam covers key elements that need attention. Through actionable insights and real-world examples, Adam shares why and how business owners should start planning their exit strategy today to maximize the future value and ensure a seamless transition. Check out the full show notes: https://moneytalkwitht.com/podcast-show-notes/business-exit-planning/ Takeaways Exit planning is crucial for business owners, yet many start the process too late. Most entrepreneurs neglect exit planning because they're too focused on daily operations. Starting exit planning early can significantly increase a business's market value and reduce risks. Succession planning ensures that your business can thrive even in your absence or unexpected events. 80% of businesses never sell, highlighting the importance of a solid exit strategy. The earlier you plan for exiting your business, the more options and value you'll have. Resources Mentioned elevateandexit.com moneytalkwitht.com libertaswealth.com For continued insights on financial strategies and business tips, tune in every Thursday for a new episode of Money Talk With Tiff. Connect with Tiffany Grant on all social media platforms @MoneyTalkWithT. Support this Podcast Copyright 2025 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Start exit planning immediately regardless of timeline
Even if selling in 3, 13, or 30 years, planning should begin now
Early planning increases business value and reduces risks
Small changes today compound into significant future value
2
80% of businesses never sell, highlighting the need for strategy
Of the 20% that do sell, 75% sell below market value
80% of business owners' net worth is tied up in their company
Without planning, owners risk becoming part of these statistics
3
Business transition planning involves multiple critical components
Succession planning for unexpected events like illness or death
Company valuation and financial cleanup (recasting personal expenses)
Continuation planning to retain key employees and clients
Reducing customer concentration risk and improving profitability
4
Most owners regret selling without a post-exit plan
75% of business owners regret selling within one year
The #1 reason is lacking a plan for what comes next
Personal financial planning for life after the business is essential

Intro

Tiffany Grant discusses the critical but often overlooked topic of business exit planning with Adam Koos, emphasizing why owners should prepare for transition regardless of their current timeline.
Adam Koos is a business transition and exit planning expert, founder of Elevate and Exit, and works with business owners through Libertas Wealth Management Group.

Elevate and Exit Libertas Wealth Money Talk With Tiff

– What is Exit Planning?

Adam defines exit planning as the process of transitioning from business owner to parting ways with the company, whether through sale to a buyer, ESOP, or family succession.

It's the act of retirement, if you want to keep it simple, for business owners.
– Adam Koos

– The Biggest Mistake: Starting Too Late

Business owners often delay planning, repeatedly pushing their exit timeline back by 'two to three years.' This creates vulnerability to unplanned events like divorce, disability, or death.

The number one thing that business owners get wrong is starting too late when it comes to planning their transition and planning their exit.
– Adam Koos

– When to Start Planning

Since the future is unpredictable, the answer is to start as soon as possible. Planning early allows owners to build value, reduce risk, and be prepared for unexpected opportunities or emergencies.

It doesn't matter if you're selling your business in three years, thirteen years, or thirty years. You need to start planning to transition your business or to exit your business now.
– Adam Koos

– Key Elements of Exit Strategy

Critical components include succession planning, company valuation, financial cleanup (recasting), customer concentration reduction, and continuation planning to retain key talent.

If you implement a business transition plan now, you're going to end up with less risk, more profit, happy employees, and exponentially growing value.
– Adam Koos

– The Stark Statistics and One Key Tip

Adam shares sobering statistics: 80% of businesses never sell, 75% of those that do sell below value, and 80% of owner net worth is tied to the business. His advice: find an accredited exit planner and start the process immediately.

75% of business owners who sell one year later say they severely regret selling their business. The number one reason is they didn't have a plan for what they were going to do when they were done.
– Adam Koos

Resources

Topics

business exit planningsuccession planningbusiness valuation entrepreneurshipfinancial planningbusiness transitionselling a businesswealth managementrisk managementretirement planning