3-Year Exit Planning Checklist

For trade and practice owners - tick items off year by year

3-5 years out

• [ ] Get a baseline value range (valuation calculator) and recast earnings to SDE
• [ ] Move to accrual books reviewed by a CPA; separate personal expenses
• [ ] Update or create the buy-sell / partnership agreement
• [ ] Start building a management layer (operations lead, office manager)
• [ ] List every license, permit and registration and who holds it

2-3 years out

• [ ] Grow recurring revenue: maintenance agreements, service contracts, memberships, hygiene recall
• [ ] Reduce customer concentration: no customer above about 15% of revenue
• [ ] Get key licenses held by more than one person
• [ ] Cut owner hours in the field or chair; document how jobs are sold, scheduled and done
• [ ] Put key employees on written agreements; consider retention bonuses tied to a sale

12-24 months out

• [ ] Two clean years of financials (reviewed or audited if buyers at your size expect it)
• [ ] Choose the route: family, key employees, ESOP, outside buyer / PE
• [ ] Model taxes and net proceeds (after-tax proceeds calculator; then your CPA)
• [ ] Review leases, vehicle loans, equipment financing and contracts for change-of-control clauses
• [ ] Clean up the equipment list, fleet records and any open legal or tax issues

6-12 months out

• [ ] Assemble the data room: 3 years of financials and tax returns, customer and revenue reports, employee roster, licenses, contracts, leases
• [ ] Choose advisers: broker / M&A adviser or DIY; M&A attorney; CPA
• [ ] Set your walk-away number and non-negotiables (role, term, people)
• [ ] Go to market; expect 6-10 months to close for Main Street deals (IBBA Q2 2026)

Your plan

General information, not legal, tax or investment advice.

Free template from TradeExit Guide. Edit freely for your business.