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Insights 22 — Exit Planning

Should I sell my business? An honest read for Australian founders

Most founders googling this question already know the answer. They’re looking for permission, not a checklist.

Most content on ‘should I sell my business’ is written by people who need you to sell — brokers, M&A advisors, exit consultants. The framing tilts toward the transaction. The more useful question is the one underneath: what are you actually asking? Once that’s clear, the answer organises itself.

If you’ve typed should I sell my business into Google, you’re not looking for a checklist. You’re looking for permission.

That’s the first thing worth saying. Because almost every article on the question is written by someone who needs you to sell — brokers, M&A advisors, exit consultants. Their answer is some version of yes, and here are seven signs you should. The framing’s built around the transaction. The advice is shaped by who’s paying for it.

The more useful question is the one underneath. What am I actually asking? Once that’s clear, the answer organises itself.

The three questions hiding inside the question

When a founder types should I sell my business into Google, they’re really in one of three states.

The first state is ready. The decision’s already made internally. The business is in good shape. The founder’s testing the water before they make the call. They don’t need a test. They need a competent broker and a structural review of whether the business will actually hold its valuation when a buyer’s due diligence team turns up.

The second state is exhausted. The business has plateaued, the team isn’t carrying the weight, and selling looks like the cleanest way out. These founders shouldn’t sell. Not yet. They’ll get a low offer because the business reads as founder-dependent, accept it because they’re tired, and regret it inside two years. This is the largest group.

The third state isn’t really about the business at all. The founder’s been running it for fifteen or twenty years. They can’t tell anymore where they end and it begins. Selling is the only frame they have for what would it be like to not be this person. That’s a different conversation. It doesn’t get resolved through a transaction.

Three different questions. Three different next moves.

Six things to notice

You don’t need a quiz. You need to notice six things honestly.

If a buyer offered you full asking price tomorrow, would you take it without negotiating? Founders who are genuinely ready don’t take the first offer. They negotiate because they know what it’s worth. Founders who are exhausted often grab it. Founders who aren’t really asking freeze on the question because they realise they don’t know what they’d do with the proceeds.

Could the business actually run at current revenue for ninety days without you? Not slow down. Run. Founders who are ready can answer with a real example — a recent holiday, an extended sick leave, something that proves it. Exhausted founders can name the specific things that would break inside a fortnight. The third group says yes when it isn’t true because they want to believe it.

What’s the first thing you’d actually do the day after settlement? Founders who are ready have something specific in mind — a project, a holiday, a next venture. Exhausted founders have a vague finally rest answer. The third group has nothing. The lack of an answer is the answer.

If the buyer asked you to stay on for two years post-sale to support the transition, what would you say? Comfortable yes or polite no points to readiness. Reluctant yes, driven by needing the proceeds, points to exhaustion. Instant no points to the third state — the question reveals what you’re trying to escape.

When did you last take a real two-week break with no work contact? Recent or recently planned points to readiness. Years ago points to exhaustion. Never — and a small story about why now isn’t the right time either — points to the third state.

What does the business look like in three years if you don’t sell? A clear picture either way points to readiness. Status quo and a feeling of tiredness points to exhaustion. Avoiding the question altogether points to the third state.

The pattern that shows up most often across those six is your honest answer.

What each pattern actually means

If you’re ready, the next move isn’t broker selection. It’s structural valuation review. Find out where the business reads as founder-dependent before a buyer does. Twelve to eighteen months of that work, done well, is often worth thirty to forty per cent on the multiple. If you list before that work is done, you’re effectively giving the buyer the discount you could have kept.

If you’re exhausted, the honest read is that the architecture is wrong, not the timing. Selling tired and selling well are different transactions. Founders who pause for eighteen to twenty-four months of structural work usually sell for materially more, with cleaner terms, and feel different about the outcome. The ones who push through and sell tired usually don’t.

If the question isn’t really about the business, don’t make a financial transaction to solve an identity problem. The transaction will close. The identity problem won’t. A different kind of conversation is needed first — one that’s allowed to be uncomfortable. Sometimes the answer is still to sell. Sometimes it’s to architect the business so it can hold itself, which gives you the same freedom without the irreversible decision.

The thing most advisors won’t say

Most advisors with skin in a transaction won’t tell you the hard thing first. The broker needs the listing. The accountant needs to keep the relationship. The M&A consultant needs the engagement. So the advice tilts toward yes.

Here’s the version with no skin in the transaction. Most founders thinking about selling are doing it for the wrong reason at the wrong time, and the financial outcome reflects that. The advisors who tell you yes immediately are picking up a fee. The ones who pause and ask harder questions are protecting the proceeds you’ve spent twenty years building.

We’d rather lose the engagement than have you sell tired and regret it. That’s the position. It’s also the filter for who’s worth listening to in this category.

Two honest paths from here

Once the answer’s clear, there are really only two paths.

The first is architect, then sell. Build the structural transferability into the business over twelve to twenty-four months. Then go to market with a business that’s been operating without founder dependency for at least one full annual cycle, with the data to prove it. Usually adds substantial multiple — often more than enough to justify the time.

The second is sell as-is, accept the discount. Sometimes timing matters more than multiple — health, family, opportunity cost. If you genuinely need out now, the move is to acknowledge the discount honestly, structure the deal to protect what matters most (often it’s not the headline number), and exit clean.

Both paths can be right. The wrong move is starting down the first thinking it’ll be quick, or down the second hoping for the first one’s price.

What to do

If you’re sitting with the question, two moves.

First, take the Founder Dependency Score. Four minutes. It’s a structural read on whether the business is currently sale-ready. Most founders are surprised by where it lands.

Second, if you’re not in the ready state, book a Clarity Call. The first conversation maps the situation honestly. No pitch. If we’re not the right fit, we’ll say so.

Selling a business well is structural before it’s commercial. The founders who get that right look back at the decision very differently from the ones who don’t.

Joe Papadatos is the author of OVERSIGHT: Leadership Architecture for Founders Who Are Done Being the Glue, available now on Amazon.

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