-Mike Warmington, Director, Platform 1

There has always been talk about a tsunami of businesses actively seeking an exit of some description. It has not come to New Zealand yet and with covid, tariffs, wars, high interest rates and fuel price concerns there is a lot of waiting going on.

What we are seeing is something less dramatic. A lot of waiting.

 

Waiting for the economy to improve.
Waiting for interest rates to fall.
Waiting for one more strong year.
Waiting for “the right time” to finally make a move.

On the surface, this waiting seems sensible. Why make a major decision if conditions might be better just around the corner?

The problem is that the right time never taps you on the shoulder. Also nobody I know has a crystal ball that actually works.

The Hidden Cost of Waiting

What tends to happen isn’t always dramatic but options narrow and flexibility disappears.

We have come across major client loss, health issues ,loss of a key agency, Australian consolidation and many other events that have narrowed options for owners who were waiting. A waiting owner we were talking to for three years had a health event then said to me “I wish I had acted when we first talked” Unfortunately the business still relied on him, had suffered, and it was too late to save.

The Myth of Perfect Conditions

There is a common belief that momentum comes from ideal circumstances, a strong economy, demand, cheap money and high business confidence.

In reality, momentum usually comes from a decision to prepare.

The people who exit well aren’t the ones who perfectly time the cycle. They’re the ones who start early enough to shape how they leave their business.

Exit Planning Doesn’t Mean Exiting Tomorrow

One of the misunderstandings around exit planning is that it means exiting immediately.

In many cases, the smartest first step isn’t a confirmed exit plan at all. It’s simply getting some clarity on your exit options.

That might mean:

• Having a honest discussion with your Advisor and understanding what your business could realistically be worth
• Outright or over time ?
• Exploring whether a partner could be introduced gradually
• Identifying which parts of the business still rely too heavily on you
• Clarifying what you want your life to look like post exit.

None of these steps commit you to leaving now. They give you information which restores control.

Why Starting Early Makes Everything Easier

Early planning buys you time. Time to strengthen the business without pressure. Time to choose the right path rather than the quickest one. Time to transition responsibility gradually rather than forced to act now.

In my experience the difference between a good exit and a rushed one often comes down to when the thinking began, not when the exit occurred.

The Real Risk Isn’t Moving Too Early

For most owners, the real risk isn’t moving too early but rather waiting too long.

The future tends to favour owners who plan ahead, not those who wait perfectly. Starting sooner doesn’t mean forcing change, it means giving yourself choices while you still have them.