Business exit plan, Larkspur and Loaf Cafe

Business exit plan template with options, valuation and timeline

A business exit plan has to choose a way out, show what the business is worth and why, and list what must change before a buyer will pay that price. This five page plan for a cafe owner selling in mid 2029 compares five exit options, works from $200,000 of adjusted earnings to a $550,000 target, and sets readiness actions, a timeline, advisers and the net proceeds.

Create a document with OneCraft5 A4 pages, editable, then download as a PDF

The document, page by page

Every page as it renders and as it prints, with nothing summarised. Read the wording before you reuse it.

Larkspur and Loaf Cafe
6 July 2026

Business exit plan

A plan to sell the cafe in mid 2029 for the best price, with the business ready to run without its owner.

Prepared by
Nadia Ferreira, owner
Date
6 July 2026
Larkspur and Loaf Cafe, business exit plan. Private and confidential.Page 2 of 5
Larkspur and Loaf Cafe, business exit plan. Private and confidential.Page 3 of 5
Larkspur and Loaf Cafe, business exit plan. Private and confidential.Page 4 of 5
Larkspur and Loaf Cafe, business exit plan. Private and confidential.Page 5 of 5
1. The goal

I opened Larkspur and Loaf in 2017 and have run it six days a week since. I want to sell it by June 2029, with a new lease that still has at least five years to run, for at least $550,000 plus stock, and leave it in good hands for the team. This plan sets out how I will choose the way out, what drives the price, and what has to change in the next three years for a buyer to pay it.

Jun 2029
Target sale date
$550,000
Target price
$1.18M
Revenue last year
11
Staff

Today the cafe makes a good profit but depends on me: I do the ordering, the rosters, the supplier relationships and most of the baking. A buyer pays for profit they can keep after I leave. Most of this plan is about making that profit transferable.

2. Exit options compared

Five ways out were considered with my accountant. The price ranges assume the readiness actions in section 4 are done.

Option
Likely price
Time to exit
For
Against
Sell to an outside buyer through a broker
$480,000 to $600,000
6 to 9 months on market
Widest market, best price if well prepared
Broker fee, confidentiality risk with staff
Sell to the manager, Jesse Tamura
$400,000 to $480,000
3 to 6 months
Continuity for staff and customers
Needs finance; may need vendor finance from me
Sell to a local cafe group
$450,000 to $550,000
3 to 6 months
Quick, buyer knows the trade
May change the menu and team
Keep it and employ a full time manager
No sale; income of $90,000 a year
Ongoing
Keeps an asset and income
Still my risk and my lease
Close and sell the equipment
$45,000 to $70,000
1 to 2 months
Simple
Loses almost all the value; staff lose jobs

Preferred route: offer Jesse the first chance to buy in mid 2028, with up to $100,000 of vendor finance over three years. If that does not proceed by the end of 2028, list with a broker in January 2029.

3. What the business is worth, and why

Small cafes are usually priced as a multiple of the owner's adjusted earnings: the profit a working owner takes out, after adding back costs a new owner would not have. Last year's figures, prepared by my accountant:

Adjusted earnings, year to 30 June 2026
Amount
Net profit before tax
$96,000
Add back: my salary
$78,000
Add back: my car, run through the business
$9,000
Add back: one off repair to the coffee machine
$11,000
Add back: interest on the fit out loan
$6,000
Adjusted earnings
$200,000

Brokers in our area are selling cafes at 2.0 to 2.5 times adjusted earnings, so the cafe is worth about $400,000 to $500,000 today. To reach $550,000 in 2029 it needs adjusted earnings of about $250,000 and a multiple of about 2.2, which depends on the drivers below. These are the drivers of each:

Value driver
Where we are today
What a buyer wants to see
Lease
4 years left plus one 5 year option
At least 5 years plus an option, at a rent under 10% of sales
Owner dependence
I bake, order and roster
A manager and head baker who run it without me
Records
Clean tax returns, rough monthly figures
Monthly accounts, weekly sales and wage reports for 3 years
Sales trend
Up 6% a year for 3 years
Growth continuing, with catering as a second income
Wages
34% of sales
30 to 32% of sales
Equipment
Coffee machine 9 years old
Major equipment under 5 years old or recently serviced
4. Readiness actions

Each action raises adjusted earnings, the multiple, or both. I review them with my accountant every quarter.

Action
Who
By
Effect on value
Negotiate a new 5 year lease with a 5 year option
Me, with my solicitor
Dec 2026
Higher multiple
Promote Jesse to general manager, with rosters and ordering
Me
Sep 2026
Less owner dependence
Train a head baker so I leave the bakery by mid 2027
Me and Jesse
Jun 2027
Less owner dependence
Move to monthly accounts and a weekly sales and wages report
Accountant
Oct 2026
Higher multiple
Grow office catering to $120,000 a year
Jesse
Jun 2028
Higher earnings
Bring wages to 31% of sales with new rosters
Jesse
Jun 2027
Higher earnings
Replace the coffee machine on a lease
Me
Mar 2027
Removes a buyer objection
Stop running my car through the business
Accountant
Jul 2026
Cleaner figures
Write an operations manual: recipes, suppliers, opening and closing
Jesse and head baker
Dec 2027
Higher multiple
5. Timeline
July 2026 to June 2027, year one: step back
New lease, Jesse as general manager, monthly accounts, head baker trained, coffee machine replaced.
July 2027 to June 2028, year two: prove it
A full year of figures with me out of the kitchen; catering grows; operations manual written.
July to December 2028, offer to Jesse
Broker appraisal in July, offer to Jesse in August, finance decision by December.
January to June 2029, sale
If Jesse is not buying, list in January; settle by June with a 4 week handover.
6. Advisers
Adviser
Role in the exit
When
Accountant, Hale and Prior
Adjusted earnings, monthly accounts, tax on the sale
From now, quarterly
Solicitor, Brennan Lowe
New lease, sale contract, vendor finance terms
Lease in 2026, sale in 2028 and 2029
Business broker
Appraisal, buyer search, confidentiality
Appraisal July 2028
Financial planner
What I need from the sale to retire
Before the offer to Jesse
Landlord
Lease extension and transfer to the buyer
2026, then at sale
7. What the sale has to pay for

The price is not what I keep. My accountant's estimate of what a $550,000 sale through a broker would leave me, before stock is added at cost:

Estimated proceeds at the target price
Amount
Sale price, goodwill and equipment
$550,000
Less broker fee at 4%
$22,000
Less payout of the fit out loan
$38,000
Less legal and accounting fees
$12,000
Less estimated tax on the sale
$40,000
Net proceeds to me
$438,000

A sale to Jesse saves the broker fee but may leave up to $100,000 owed to me over three years. My financial planner will tell me before August 2028 whether either result is enough to retire on.

If plans change. If my health or family needs force an earlier exit, the order of options is the same: Jesse first, then a broker. If sales fall for two quarters in a row, the listing date moves back six months rather than selling at a low point. I will look at this plan again every January and after any big change, such as an offer out of the blue or a new cafe opening on the street.

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Cover
Spine cover with the cafe, the plan and its date.
1. The goal
Target sale date and price, and why owner dependence matters.
2. Exit options compared
Five options with price range, time to exit, for and against, and a preferred route.
3. What the business is worth
Adjusted earnings of $200,000, the multiple and six value drivers.
4 and 5. Readiness actions and timeline
Nine actions with effect on value and a three year timeline.
6 and 7. Advisers and net proceeds
Five advisers, what a $550,000 sale leaves, and what happens if plans change.

How to adapt this document

First, ask your accountant for adjusted earnings for the last three years and use the trend, not one good year, to set the target. Second, swap the value drivers for your trade: a service business may weigh contracts and staff retention, a shop its lease and stock turnover. Third, if you plan to pass the business to family rather than sell it, keep the options table and readiness actions but replace the valuation with how ownership will transfer and how other family members are treated fairly.

What makes this document work

The price is built, not hoped for

Net profit of $96,000 becomes adjusted earnings of $200,000 once the owner's salary, car, a one off repair and loan interest are added back. At 2.0 to 2.5 times that, the cafe is worth $400,000 to $500,000 today; the $550,000 target needs earnings near $250,000, which is what the readiness actions aim at.

Every action names its effect on value

The readiness table says whether each action raises earnings, the multiple, or removes a buyer objection: a new five year lease lifts the multiple, cutting wages to 31% of sales lifts earnings, replacing the nine year old coffee machine removes an objection. Nothing on the list is busywork.

It shows what the owner keeps

A $550,000 sale leaves $438,000 after a 4% broker fee, the fit out loan, fees and estimated tax. The plan also notes that a sale to the manager saves the fee but may leave $100,000 owed over three years, so the owner can judge both routes against retirement needs.

Questions people ask

What are adjusted earnings and why do buyers use them?

Adjusted earnings are the profit a working owner actually takes from the business once personal and one off costs are added back, such as the owner's salary, a car run through the books or a single large repair. Buyers price small businesses on them because they show what the buyer will earn, not what the tax return reports.

How long before selling should an exit plan start?

Two to three years is common for a small business. Buyers want to see at least a full year, ideally several, of figures with the owner less involved, and things like a new lease or a trained manager take time. Starting earlier also leaves room to wait out a weak trading period instead of selling into it.

Should I sell to my staff or on the open market?

Selling to a manager or staff member gives continuity and can be quicker, but they often need finance, which may mean the seller lends part of the price. The open market through a broker usually brings the best price but costs a fee and risks staff hearing early. Many owners offer staff the first chance with a deadline, as this plan does.

What lowers the value of a small business at sale?

Common factors are a short lease, an owner the business cannot run without, messy or unreliable records, falling sales, high wage costs and old equipment a buyer must replace. Each is listed in this plan with where the cafe stands today and what a buyer wants to see, which turns a valuation into a to do list.

Is the sale price what the owner receives?

No. Broker fees, legal and accounting costs, repayment of business loans and tax on the sale all come out first, and stock is often added on top at cost. Working out the net figure early, as section 7 does, tells the owner whether the target price is enough to retire on or whether the plan needs a different goal.

Build your own in about a minute

The button below opens the generator with this use case already described. Change the wording to match your own, generate, then edit anything you like.

Make one like this

Other document examples

Want the steps in the builder? Read Create a document with AI, then Add a cover page to your document. For everything this generator can do, see the document maker.

Sources

Written and checked by the OneCraft team. Last checked .