Key Takeaways
- Buyers want profitable, systemised, and low-risk businesses
- A 2–3 year runway gives you time to maximise your value
- Start exit planning early—even if you’re not ready to sell yet
- Documentation, delegation, and clean financials are essential
- A structured checklist improves your negotiating position and sale outcome
Thinking of selling your trade business, or just want to be ready when the time comes? Whether you’re a plumber, electrician, builder or landscaper, having a clear exit plan can be the difference between a profitable transition and a stressful scramble.
Here’s a practical, step-by-step exit planning checklist based on what buyers are actually looking for in a trade business. Use this guide to start preparing now so you can walk away on your terms when the time is right.
1. Define Your Ideal Exit
- When would you like to exit? 1, 3, or 5 years from now?
- Do you want a full sale, partial sale, succession plan, or management buyout?
- What financial outcome do you need to support retirement or your next venture?
Knowing your desired outcome helps shape every step you take from here.
2. Get Your Financials in Shape
- Clean, up-to-date financial statements and BAS lodgements
- Clear separation of personal and business expenses
- Reliable revenue and margin tracking by job or department
Buyers want to see financial predictability and transparency. If your books are a mess or reliant on your own knowledge, it becomes a risk for them and lowers the price you’ll be offered.
3. Reduce Owner Dependency
If your business can’t operate without you, it’s harder to sell. Buyers want confidence that the business will keep running smoothly after the handover.
- Delegate quoting, job management, and customer service where possible
- Train a second-in-command or key team member to step up
- Document your day-to-day processes so someone else can follow them
4. Systemise Operations
- Implement scheduling, quoting, and job tracking software
- Develop checklists and standard operating procedures (SOPs)
- Ensure systems are used consistently by your team
Systemisation not only adds value but gives buyers peace of mind about business continuity.
5. Build Recurring Revenue Streams
Buyers love predictable income. While most trade businesses are project-based, you can add value by introducing elements such as:
- Service contracts or maintenance agreements
- Long-term relationships with builders or commercial clients
- Subscription-based offerings for ongoing inspections or compliance
6. Document Client and Supplier Relationships
Create a detailed list of key customers and suppliers. Include:
- Volume and frequency of work
- Terms of trade or agreements
- Relationship history and risks
This information helps de-risk the transition for a buyer and supports due diligence.
7. Review Your Legal and Tax Structure
- Is your business structure sale-ready? (e.g. trust vs company)
- Are your contracts, insurances, and compliance obligations current?
- Have you considered Capital Gains Tax implications or small business concessions?
Speak to your accountant and solicitor early to avoid costly surprises later.
8. Prepare a Business Profile or Info Pack
Before going to market, prepare a clear, honest overview of the business:
- History, services, and strengths
- Financial highlights (profitability, growth)
- Team structure and roles
- Client base and future opportunities
This helps attract serious buyers and speeds up the due diligence process.
9. Consider Timing and Market Conditions
Are you selling at a time of high demand in your industry? Could waiting 12 months improve your revenue or positioning? Strategic timing can significantly boost the sale price.
10. Assemble Your Advisory Team
A successful business sale typically involves:
- An accountant who understands exit strategies and tax implications
- A solicitor experienced in business sales and contracts
- Possibly a broker or advisor to help you find buyers and manage negotiations
Don’t try to do it all alone. A good team helps protect your interests and gets the deal over the line.
Final Thoughts
You’ve worked hard to build your trade business, make sure you’re rewarded when it’s time to exit. A buyer-ready business is one that’s profitable, well-documented, systemised and not overly reliant on its owner.
Start early. Even if you’re years away from selling, getting your systems and financials in place now can dramatically improve your options down the track. When the time comes, you’ll be ready and in control.
Toyne Accountants specialise in helping tradies and small businesses by removing the hassle of bookkeeping & accounting providing clarity for better financial decisions.
