Debunking 7 Common Myths About Exit Planning
- Mark Hartmann
- 4 days ago
- 5 min read
If you’re like most business owners in your 60s, you’ve spent a lifetime building your company—sweat, sacrifice, and plenty of sleepless nights. But when it comes time to sell, too many otherwise savvy entrepreneurs fall for myths that cost them time, money, and peace of mind.
Let’s clear the air. Below are seven of the most common—and most damaging—myths about exit planning, debunked by someone who’s not just helped others exit, but sold his own company too.
Myth #1: “I Can Handle the Sale Process on My Own.”
Let’s get this one out of the way. This is the myth I see most often, and it’s also the most dangerous.
Yes, you’re a sharp operator. You’ve built a business that generates millions in revenue. But selling your company isn’t just another business decision—it’s a high-stakes, emotionally charged, once-in-a-lifetime transaction. And it’s loaded with blind spots.
Buyers—mainly private equity groups and strategic acquirers—do this for a living. You don’t. They’ll exploit weak spots in your financials, capitalize on emotional moments during negotiation, and stretch due diligence until you’re begging to close. That’s not an insult—it’s just the nature of the game.
An experienced M&A advisor (like me) helps level the playing field. I’ll guide you through valuation, prep, buyer screening, negotiations, deal structure, tax optimization, and closing. Trying to DIY your exit is like representing yourself in court—possible, but rarely wise.
Myth #2: “I Don’t Need to Plan Until I’m Ready to Sell.”
You're already behind if you’re waiting until you’re “ready” to start planning your exit.
Exit planning isn’t a quick pivot—it’s a multi-year process if you want to do it right. You may need time to clean up your financials, strengthen your leadership team, diversify your customer base, or reduce your reliance on a few key employees (especially if one is you).
The earlier you start exit planning, the more control you have over your outcome—value, timing, and legacy. Even if you’re three to five years out, now is the time to begin.
Think of it like retirement planning: you don’t wait until 65 to open your IRA. It's the same logic here.
Myth #3: “Revenue Drives Value—My Top Line Is Strong, So I’m Good.”
Revenue matters—but it’s not the end-all, be-all.
Serious buyers care a lot more about earnings, recurring revenue, customer concentration, growth potential, and the strength of your team. A business doing $10 million in revenue with razor-thin margins and one giant customer is far less attractive than a $7 million business with solid profits, loyal clients, and a self-sufficient team.
Bottom line: valuation is driven by risk and return. Reduce risk, increase sustainable earnings, and the value follows. That’s where real exit planning starts—by engineering a company that runs smoothly without you and generates healthy cash flow.
Myth #4: “Selling to My Kids or Employees Will Be Simple.”
This one’s emotionally appealing—and often a logistical mess.
Yes, internal succession can work. But it’s rarely simple. Your kids may not want the business, and your top employees may not have the capital. And even if they do, structuring a fair, tax-efficient deal while preserving relationships takes finesse and planning.
Don’t assume an internal sale is a shortcut. It must still pass the same diligence, valuation, and financing hurdles as any other deal. Without proper guidance, family transitions can quickly get personal and ugly.
If this is your path, great—but plan carefully. Protect your legacy, your family harmony, and your retirement goals.
Myth #5: “My Business Will Sell Quickly.”
Maybe. But probably not.
Even well-run businesses in the $1M–$25M range can take 9 to 18 months to sell—and that’s after you’ve adequately prepared the business, marketed it, and found the right buyer.
Some deals go faster, especially if the business is turnkey, professionally run, and generating strong cash flow. However, others take longer due to market conditions, financing constraints, or complex deal structures.
Rushing the process usually backfires. Give yourself time to run a competitive process and find the right buyer at the right price—someone who values your company for what it is, not just what they can squeeze.
Myth #6: “The Sale Will Fund My Retirement—No Problem.”
This is a big one—and a trap.
Too many owners assume the proceeds from the sale will cover their retirement without really doing the math. Here’s the problem: what you net from the sale may differ significantly from what you expect. Taxes, deal structure, advisory fees, and working capital adjustments can all chip away at the final number.
Add in the fact that many owners rely heavily on their business income to support their lifestyle, and the reality becomes clear: you need to plan your financial future, not just your business’s sale.
Start with a solid financial plan. Know your number. Then, structure your exit accordingly. I can help you work with your financial advisor to run those scenarios and ensure you don’t end up with champagne expectations and a beer budget.
Myth #7: “My Business is Too Small for Formal Exit Planning.”
Wrong. If your company is worth $1M, $5M, or $20M—you need formal exit planning.
In fact, exit planning has the greatest impact in the lower-middle market. Small tweaks—like cleaning up your books, locking in a key contract, or reducing owner dependence—can have a major impact on your valuation multiple.
The stakes are high. One misstep could cost you hundreds of thousands (if not millions) in value. Why risk that?
Exit planning isn’t about bureaucracy or unnecessary processes. It’s about clarity, control, and maximizing what you’ve built over decades. Your company deserves more than a handshake and a quick goodbye. You do, too.
Wrapping It Up
You built your business through hard work, smart decisions, and relentless execution. Selling it shouldn’t be any different.
Don’t fall for the myths. The truth is, a successful exit takes planning, expertise, and a team you trust. Whether you’re two years out or ready to start tomorrow, I’m here to help you transition on your terms—with a clear plan, expert guidance, and the best possible outcome.
Ready to take the first step?
Schedule a confidential consultation or explore more insights on HartmannRhodes.com. You spent decades building your business. Let’s make sure the exit is just as successful.
Blog: Debunking 7 Common Myths About Exit Planning
Mark Hartmann is a former business owner turned M&A advisor who knows firsthand what it takes to build, grow, and sell a successful company. A three-time Inc. 5000 CEO, Mark did just that before navigating its eight-figure sale—giving him a rare perspective that sets him apart from most brokers. Today, he helps owners of companies valued between $1M and $25M plan and execute smooth, profitable exits.
Mark understands that selling a business isn’t just a financial decision—it’s personal. That’s why he works closely with owners to protect their legacy, maximize value, and make the transition on their terms. He holds an MBA from Eastern University, a Master’s Degree in Organizational Change Management from St. Elizabeth University, and a Graduate Certificate in Executive Coaching from Columbia University. Some of his professional credentials include Certified Mergers & Acquisitions Professional (CM&AP), Certified Business Intermediary (CBI), Certified Exit Planning Advisor (CEPA), and Certified Value Builder (CVB).
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