Exit Planning Isn’t Just About Selling—It’s About Freedom
- Mark Hartmann
- Apr 25
- 7 min read
You spent decades building your business. You’ve weathered the storms, reinvested in your team, and sacrificed more weekends than you care to count. You didn’t just create a company—you created a legacy. But now you’re looking ahead, and the question isn’t just when to exit but how to do it on your terms.
As someone who’s built, grown, and sold my own business, I can tell you this: exit planning isn’t just about selling your company. It’s about creating freedom—financial freedom, time freedom, and peace of mind for your next chapter.
In this post, I will explain how proper exit planning prepares you not only for a successful transaction but also for the life you've earned after the deal is done.
What Is Exit Planning, Really?
Most business owners I meet initially think “exit planning” means putting their company up for sale. But that’s not quite right.
Exit planning is the comprehensive strategy to prepare your business and personal life for a future transition. It's a process—not a moment. And it's something you should ideally begin years before you sell.
An excellent exit plan answers questions like:
• How much do I need to net from a sale to retire comfortably?
• Is my business worth that amount today? If not, how do I close the gap?
• What happens to my employees, customers, and legacy after I exit?
• What do I want the next chapter of my life to look like?
It's as much about personal goals as financial ones. Because when done right, exit planning gives you the power to make decisions—not out of desperation but from a place of clarity and confidence.
Why Freedom Should Be the True Goal
When I exited my own company, the money was necessary—but freedom was what mattered.
For many business owners, your company has been your identity. You’ve poured your energy into growing it. But somewhere along the way, you may have started wondering:
• “What’s next for me?”
• “Can I step back without everything falling apart?”
• “Have I set myself up to enjoy retirement—or just keep working forever?”
That’s where exit planning creates a new kind of opportunity. When you take the time to prepare, you gain:
1. Financial Freedom
A well-executed exit plan ensures you’re not just selling for a number—but toward a number that supports your lifestyle and long-term goals. That means understanding your business valuation, optimizing for value, minimizing taxes, and structuring the deal to protect your proceeds.
2. Freedom of Time
You can design your exit with the proper planning to match your desired timeline. Want to stay involved for a few years? We can build that in. Ready to walk away in six months? That's possible, too. Planning early gives you options.
3. Freedom of Purpose
For some owners, post-exit life can feel disorienting. But exit planning includes defining what you want after the business—retirement, travel, family time, or starting something new. Freedom isn't just about stepping away—it's about stepping into something meaningful.
The Cost of Waiting Too Long
Here's the hard truth: many business owners don't plan their exit until forced to.
Health issues. Burnout. A family emergency. Or just waking up one day feeling completely done. Decisions get rushed, value gets left on the table, and regrets pile up when that happens.
I’ve seen it more times than I’d like to admit: a great business that could’ve sold for a much higher value—if the owner had started planning a year or two earlier.
Exit planning doesn’t mean you’re selling tomorrow. It means you’re being smart today.
Step 1: Start With the End in Mind
If freedom is the goal, then we must define what that looks like for you.
Here are some questions I ask my clients early on:
• What does an ideal exit look like? Full sale, partial sale, succession?
• When would you like to exit? When must you?
• What does “enough” look like financially?
• What do you want your life to look like after the sale?
• What legacy do you want to leave behind?
You'd be surprised how few owners can confidently answer these questions. That's why we build a personal and business readiness roadmap—because clarity leads to better decisions.
Step 2: Get a Reality Check on Business Value
Most owners have no idea what their business is worth.
They might have a number in mind based on hearsay, an outdated rule of thumb, or a competitor's sale. But what is the actual market value? That can be a very different story.
We start with a professional, market-based valuation. Then we assess:
• What’s driving value? (Recurring revenue, strong management, clean financials)
• What’s hurting value? (Owner-dependence, customer concentration, operational risk)
• Where are the gaps?
From there, we build a plan to increase value over time—so that when you do sell, you’re in control.
Step 3: De-Risk and Delegate
A valuable business can run without you.
If you're involved in every decision, every customer relationship, and every fire drill, then your business is too dependent on you. And that's a risk buyers will factor into their offer.
Part of exit planning is building a self-sustaining business:
• Delegate key responsibilities to trusted leaders.
• Document systems and processes.
• Diversify customer and supplier bases.
• Create a second layer of management if possible.
Not only will this increase value, but it gives you more freedom even before you sell. Win-win.
Step 4: Understand Deal Structure and Taxes
Another key to freedom is knowing how a deal will likely be structured—and how it affects your bottom line.
The "headline" sale price is often not what you walk away with. Earn-outs, holdbacks, working capital adjustments, taxes, and fees all affect net proceeds.
A good exit plan includes:
• Tax planning (capital gains vs. ordinary income)
• Legal structure review (S corp, C corp, LLC implications)
• Estate and wealth planning
• Exit strategies (full sale, recapitalization, ESOP, etc.)
You want to work with an M&A advisor, CPA, and wealth planner who speak the same language and put your interests first.
Step 5: Communicate Your Legacy
For many owners—especially those in their 60s and beyond—the decision to sell isn’t just financial. It’s emotional.
They worry about:
• What will happen to their employees?
• Will customers be treated the same?
• Will the buyer respect what they’ve built?
These are real concerns. And they deserve honest answers.
In the exit planning process, we also define your non-financial goals. Maybe you want to stay on as a board advisor for a year, ensure the business keeps its name, or protect your people through the transition.
When we know what matters to you, we can find buyers who align with your values—and structure deals that preserve your legacy.
Step 6: Prepare for What Comes Next
This might be the most overlooked part of the process.
I've met plenty of former owners who sold their businesses and then wondered, "Now what?"
They didn’t plan for what came after—so even with financial freedom, they felt lost.
That’s why exit planning includes preparing you, not just your business:
• What does a fulfilling next chapter look like?
• Do you want to volunteer, mentor, travel, or start a foundation?
• Will your identity still feel intact without your company?
I always recommend considering this with a retirement coach or transition advisor. Selling your business shouldn't be an end—it should be a new beginning.
My Own Story: Why I Believe in Exit Planning
Before I became an M&A advisor, I was in your shoes.
I built an insurance tech company from scratch. We made the Inc. 5000 list three times. I had a great team, loyal clients, and a strong brand. But after years of hustle, I was ready for something else.
I didn’t want to fire-sale the business. I wanted to leave on a high note—with confidence, clarity, and options.
So, I took the time to plan.
• I built a leadership team that could operate without me.
• I worked with professionals to structure the deal right.
• And I thought deeply about what I wanted after the business.
The result? A successful sale—and a smooth transition into this next chapter, helping others do the same.
That’s why I started HartmannRhodes. I’ve lived this process. And I want other business owners to experience the same freedom I did.
Final Thoughts: Exit Planning Is the Gift You Give Your Future Self
If you're a business owner in your 60s (or beyond), you've likely been thinking about what's next. You might feel uncertainty, fear, and guilt about walking away.
But here’s what I’ve learned:
You don’t have to rush. But you do need to plan.
Exit planning puts you back in control. It's how you protect what you've built, provide for your family, care for your team, and move forward purposefully.
It’s not just about selling—it’s about freedom.
I'd love to talk if you're curious about where to start. Whether you're a year out or five, the best time to plan is now.
Let’s build a roadmap that works for you.
Ready to explore your exit options?
Schedule a confidential call with me, and let's discuss your goals, your timeline, and how to make your future as rewarding as your past.
Blog: Exit Planning Isn’t Just About Selling—It’s About Freedom
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).
44 Washington Street, Unit #1080
Morristown, NJ 07960
Partner with HartmannRhodes, expert business brokers and M&A advisors, to navigate your business sale with precision—maximizing value and ensuring a smooth transition. Reach out for tailored business sale strategies. Contact us today!
