Why Time is the Enemy of Your Business Exit (and How to Beat It)

January 6, 2026

The decision to sell your business is likely one of the most significant financial events of your life. It is the culmination of decades of hard work, sleepless nights, and strategic risk-taking. While we often compare selling a business to selling a home, the reality is far more nuanced. You are not simply handing over keys; you are transferring a living, breathing ecosystem of employees, clients, and operational history.

Because of this complexity, a proper deal takes time. Due diligence must be thorough, and legal agreements must be watertight. However, there is a distinct difference between a necessary process and an unnecessary delay. In the mergers and acquisitions industry, we operate by a harsh but accurate maxim: Time kills deals.

The Momentum Breakers: Why Delays Erode Value

When a Letter of Intent (LOI) is signed, there is a palpable sense of excitement. Both the buyer and the seller are optimistic. However, as the clock ticks, that enthusiasm can wane. Just as a soufflé does not rise twice, a deal that loses its heat rarely recovers its initial valuation.

Delays introduce risk. The longer a deal drags on, the higher the probability that external factors will intervene. A sudden shift in the Canadian economy, a new competitor entering the market, or a change in interest rates can all spook a buyer. Furthermore, deal fatigue is a very real psychological phenomenon. If the process becomes a bureaucratic slog, buyers may begin to wonder if the trouble is worth the asset.

The Role of Your Transaction Advisor

This is where the specialized expertise of a transaction advisor becomes indispensable. You can think of your advisor not just as a broker, but as a seasoned navigator steering a ship through a narrow channel. We know where the rocks are hidden beneath the water.

An experienced business advisor does more than just find a buyer; they manage the tempo of the transaction. We act as the central point of contact, ensuring that accountants, lawyers, and consultants are moving in lockstep. Without a conductor, the orchestra rarely plays in tune, and in a business sale, discord leads to silence at the closing table.

Identifying and Clearing Common Bottlenecks

Ideally, we want to address issues before they become deal-breakers. A proactive advisor will foresee these common bottlenecks:

• Incomplete Financial Records: Nothing halts a deal faster than a buyer asking for a document that does not exist. If your financials require a forensic archeologist to decipher, buyers will assume there are deeper issues hiding in the ledger.

• Legal Quagmires: Lawyers are essential to protect your interests, though some do seem to believe that brevity is a moral failing. Your advisor ensures that legal counsel remains focused on material risks rather than getting bogged down in theoretical minutiae.

• Operational Distraction: As you focus on the sale, your attention may drift from running the business. If your revenue dips during the due diligence period, the buyer may attempt to renegotiate the price—a practice known as “retrading.”

Strategies to Maintain Velocity

As a business owner, you play a critical role in maintaining momentum. While your advisor manages the process, your responsiveness dictates the speed.

To ensure a smooth transition and maximize your exit value:

• Prepare Early: Do not wait for a buyer to ask for data. Have your corporate minute books, contracts, and three to five years of normalized financial statements ready in a data room before going to market.

• Centralize Communication: Route all requests through your transaction advisor. This prevents you from being overwhelmed and ensures consistent messaging to the buyer.

• Set Clear Deadlines: A timeline without deadlines is merely a wish list. Work with your advisor to establish strict schedules for due diligence and closing.

Securing Your Legacy

Selling your business is a complex process, and it should not be rushed—but neither should it be allowed to drift. By engaging a transaction advisor to manage the bottlenecks and keep all parties accountable, you protect the value you have built.

Your legacy deserves a transition that is as professional and successful as the business you created. Let us handle the turbulence so you can land the plane safely.