Exiting a business can be one of the most pivotal moments for a business owner. Whether due to retirement, shifting focus, or seeking new opportunities, selling or transferring a business is fraught with complexities. I recently read "What it takes" by Stephen A. Shwarzman founder of Blackstone Group, a large US M&A and Investment Group. In it he articulates his 25 rules for life and investing. One rule that stood out was that "Time wounds all deals, sometimes even fatally."
In business exit planning, the longer a deal drags on, the greater the risk of unforeseen complications. Schwarzman’s point underscores that time itself can become an obstacle. Delays can lead to changing market conditions, shifts in business performance, or changes in the buyer’s financial position, all of which can jeopardise the deal. Keeping negotiations moving toward a swift conclusion minimises the risk of surprises—economic downturns, new competitors, or even changes in industry regulation—that can derail the transaction.
In addition to market forces, personal dynamics can change. Buyers may reconsider or lose interest, investors might back out, and even key employees may become unsettled by the uncertainty, potentially leading to operational disruptions. Timing is particularly critical when there are "tough negotiations," as Schwarzman notes, because keeping all parties engaged and focused on the outcome increases the likelihood of success. Prolonging discussions opens the door to second thoughts, shifting priorities, and increasing chances for deal collapse.
Therefore, having a clear, strategic exit plan with defined timelines is essential. By creating a roadmap that anticipates potential obstacles and maintains momentum, business owners can maximise value and avoid the pitfalls of extended negotiations. Time, if not well-managed, can indeed wound, or even kill, the deal.
For an in depth discussion and a better understanding of the Business Exit process, reach out for a no obligation, confidential chat. We are always happy to help.
Wishing you every success planning your business exit,
The Team at Exitus
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