Succession Isn’t a Switch You Flip: Why Every Business Owner Needs to Start the Exit Clock Early

For many successful business owners, the idea of selling their company only becomes real when it has to—usually triggered by burnout, declining health, or simply the realisation that they’re getting older and want out. But waiting until you need to sell is one of the most common and costly mistakes in succession planning.

Too often, owners arrive at the market late in the game, which limits their options. At that stage, a full 100% sale is often the only viable path—vendor finance and earn-outs aside. Yet for many of the best investors out there, that’s not what they’re looking for.

The Misalignment: Owners Want Out, Investors Want In—Just Not 100%

Professional investors—whether private equity firms, family offices, or strategic buyers—aren’t always looking to take over the day-to-day running of a business. Most are investors, not operators. They’re seeking high-quality businesses where they can buy in, back the current leadership team, and help the company scale further. But that usually means acquiring between 40% and 70% of the business—not the whole thing.

This creates a conundrum. The business owner wants a clean exit. The investor wants a partner. And unless the business has started succession planning well in advance, that gap is hard to bridge.

Staged Exits Create Better Outcomes

A staged or partial exit—where the owner de-risks by selling a majority stake but stays involved in the business for a defined period—is often the most financially rewarding path. With the right investor, owners can:

  • Take money off the table while still participating in future upside

  • Access new capital and strategic guidance to grow the business further

  • Prepare for a full exit in 3–5 years on better terms than a one-off sale today

The investors that support this model vary. Some funds are structured with clear exit horizons of four to five years. Others are more flexible, with open-ended timeframes that allow for a longer partnership. Both offer owners a real chance to de-risk now and exit well later—but only if they plan early.

The 10-Year Rule

If you’re a business owner in your mid-50s or 60s, it’s not too early to think about succession. In fact, the best time to start is often 10 years before you plan to fully step away. That gives time to:

  • Get governance and reporting in shape

  • Identify internal succession candidates

  • Attract the right investors—not just the first buyer that shows up

  • Maximise value at each stage of the exit

Waiting until you’re too tired, too busy, or too unwell to lead the process means your business likely won’t get the exit it deserves—and neither will you.

Where to From Here?

At Three Sixty Capital Partners, we specialise in helping mid-market business owners explore all succession options—not just the obvious ones. We have deep relationships with investors across the spectrum, from growth funds to buyout firms and long-term capital providers.

If you’re even starting to think about stepping back from your business—whether that’s five years from now or fifteen—there’s real value in having the conversation early. The best exits don’t happen by accident. They’re designed well in advance.