Key points
- Preparation is usually the longest stage.
- A sale process itself commonly runs six to twelve months.
- Earn-outs and handovers extend the owner's involvement after completion.
- Starting early widens the choice of exit routes.
Retiring from a business involves three periods: preparation, the transaction itself, and handover. Together they often span several years.
- 1
Preparation period
Often months or years. Reducing owner dependence, developing management, improving reporting and deciding on an exit route.
- 2
Transaction period
The formal sale or transfer itself. A conventional sale commonly takes six to twelve months from appointing advisers to completion.
- 3
Handover period
Often continues after completion. Buyers usually expect a transition period, and some consideration may be deferred.
Three distinct periods
- 1
Preparation period
Often months or years. Reducing owner dependence, developing management, improving reporting and deciding on an exit route.
- 2
Transaction period
The formal sale or transfer itself. A conventional sale commonly takes six to twelve months from appointing advisers to completion.
- 3
Handover period
Often continues after completion. Buyers usually expect a transition period, and some consideration may be deferred.
Example timelines
These examples are illustrative only. Every business is different and timelines vary substantially.
- Owner already exit-ready: a strong management team and good reporting may allow a sale process to begin within months, with total time to full retirement of perhaps 12–24 months including handover.
- Owner-dependent business: two to three years of preparation is common before a sale is advisable, followed by the transaction and handover.
- Family or management succession: often several years, because successors need time to develop and ownership may transfer in stages.
This guide is general information only. It is not tax, legal, financial or employment advice. Always take advice from appropriately qualified professionals about your own circumstances.
How should I work backwards from the date I want to finish working?
Work backwards from the end of your expected handover, then allow for the transaction and the preparation needed before it can start. The business's current condition determines how much preparation belongs in that calculation. Strong management and reporting may shorten that stage, while substantial reliance on you makes an early start more important.
Specialist resources
- Discuss your exit with an adviser — to consider a possible full sale after an experienced adviser understands your circumstances