When an Exit Is on the Horizon – Indianapolis Business Journal

Content sponsored by Goelzer Investment Management

For many business owners, the most consequential financial decision of their lifetime isn’t how they build their company—it’s how they transition out of it. Some of the most important exit decisions are made before a sale process formally begins, often years before a transaction closes.

Smart succession planning is about ensuring that the wealth created through years of hard work supports life after the exit. Owners who approach this phase thoughtfully often retain more control, experience fewer surprises, and achieve better after‑tax outcomes.

If a business owner expects to exit within the next one to three years, when should planning start?

Michelle Jann: Ideally, before the process formally begins. The most effective planning often happens before a letter of intent is signed, when owners still have maximum leverage over timing, structure, and options. Once negotiations are underway, decisions can become reactive, and opportunities for meaningful planning may narrow.

What’s the biggest mistake owners make as they approach an exit?

Michelle Jann: Treating the exit as purely a business transaction rather than a personal liquidity event. Valuation matters, but what ultimately impacts an owner’s future is how much they retain after taxes, fees, and deal structure—and how that capital fits into their broader financial picture.

What should owners focus on first as they prepare for a potential sale or transition?

Michelle Jann: Clarity. Owners should understand what they want life to look like after the exit—financially and personally—and then evaluate whether the business can support those goals. Many owners have a sense of what their business might sell for, but less certainty around after tax proceeds, future cash flow, and long term sustainability. A successful exit isn’t just about proceeds—it’s about ensuring owners are prepared for the following personal and financial shift, when the structure and identity of business ownership are gone.

How do deal structure and tax considerations affect exit outcomes?

Michelle Jann: Significantly. Two owners can sell businesses for the same price and walk away with very different results. Deal structure influences timing of cash flow, tax exposure, ongoing risk, and future involvement. Coordinating early with legal and tax professionals—before terms are finalized—can help preserve flexibility and reduce surprises.

What options should owners consider when deciding how to transition their business?

Michelle Jann: Owners may pursue a sale to a strategic buyer, partner with private equity, sell to a management team, transition ownership within the family, or explore an Employee Stock Ownership Plan.

The “best” option is rarely about headline price alone. After tax proceeds, deal structure, ongoing involvement, and family dynamics often matter as much as valuation. Each path involves trade offs, and the right solution depends on an owner’s priorities and preparedness.

Many owners have most of their wealth tied up in their business. How should they think about that as an exit approaches?

Michelle Jann: Concentration risk is common—and often underestimated. As an exit nears, planning should focus on how to transition business value into diversified wealth that supports long term goals. Liquidity planning isn’t just about receiving proceeds; it’s about replacing income, managing taxes, avoiding rushed investment decisions, and aligning wealth with family and legacy objectives.

What role does integrated wealth planning play during a business transition?

Michelle Jann: The most successful exits are supported by coordination. Business transition planning, personal wealth planning, tax strategy, and estate planning all intersect during a liquidity event. When those elements are aligned early, owners are better positioned to navigate complexity with confidence and convert a major milestone into lasting clarity.

Goelzer Investment Management works with business owners approaching transitions by integrating personal wealth planning with business exit and liquidity event strategies. Since 1969, our firm has served clients who expect thoughtful guidance, coordination with their professional advisors, and disciplined planning through complex financial decisions.

Let’s talk

If an exit may be in your future—whether through a sale, recapitalization, or family transition—a conversation today can help clarify your options and protect flexibility. Call 317-264-2600 or visit GoelzerInc.com.