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The Year-End Exit Planning Checklist: 5 Critical Things to Do Before 2026

The Year-End Exit Planning Checklist 5 Critical Things to Do Before 2026
December is here. And with it comes a choice.
You can let the year end without a plan, or you can use these final weeks to position yourself for a successful 2026.
If you’re thinking about selling your business in the next 1-3 years, the work you do in December will directly impact your exit outcome. This is when you review, optimize, and plan for the year ahead.
In this guide, I’m going to walk you through the five critical things every business owner should do before 2026. Do this work now, and you’ll start the new year positioned for success.

Checklist Item #1: Financial Review & Cleanup

What to do:
  • Review your 2025 financials with your CPA
  • Reconcile all bank accounts and credit card statements
  • Identify any accounting issues or discrepancies
  • Ensure all revenue is properly documented
  • Categorize expenses accurately
  • Document any owner perks that won’t transfer to a buyer
Why it matters: Clean financials are the foundation of everything. A buyer’s first question is always “Are these numbers real?” If your financials are messy, you’ll either lose the deal or get heavily discounted.
Timeline: 2-4 weeks
Questions to ask your CPA:
  • Are our financials audit-ready?
  • What accounting issues do we need to fix?
  • Are we properly documenting all revenue?
  • What owner perks should we document?
Red flags to watch for:
  • Commingled personal and business expenses
  • Off-books cash or unreported revenue
  • Inconsistent accounting methods
  • Missing documentation

Checklist Item #2: Tax Optimization for Exit Readiness

What to do:
  • Meet with your CPA to discuss tax strategy
  • Review your current business structure (S-Corp, C-Corp, LLC, etc.)
  • Discuss timing of income recognition
  • Explore expense acceleration and deferral strategies
  • Review depreciation and asset strategies
  • Discuss Qualified Small Business Stock planning (if applicable)
  • Plan for estimated tax payments in 2026
Why it matters: Your tax strategy directly impacts your exit value. A smart tax strategy can save you $50K-$500K+ depending on your business size. More importantly, the wrong tax structure can make your business harder to sell.
Timeline: 2-4 weeks
Key questions to ask your CPA:
  • Is our current business structure optimal for an exit?
  • What tax strategies should we implement in 2026?
  • How will the sale impact our personal tax liability?
  • What can we do now to minimize taxes on the sale?
  • Should we consider a different business structure?
Red flags to watch for:
  • Suboptimal business structure for exit
  • No coordination between tax and exit strategy
  • Unnecessary tax liability on the sale
  • Missed tax optimization opportunities

Checklist Item #3: Customer & Revenue Analysis

What to do:
  • List your top 20 customers and their annual revenue
  • Calculate your customer concentration ratio (% from top 3)
  • Analyze customer churn rate over the past 2 years
  • Identify recurring vs. one-time revenue
  • Review customer contracts and renewal terms
  • Identify any customer concentration risks
  • Plan customer diversification strategy for 2026
Why it matters: Buyers care deeply about revenue quality and customer concentration. High customer concentration = high risk = lower valuation. Diversified, recurring revenue = premium valuation.
Timeline: 2-3 weeks
Questions to answer:
  • What % of revenue comes from our top 3 customers?
  • Is our revenue recurring or one-time?
  • What’s our customer churn rate?
  • Are any major customers at risk?
  • What’s our customer acquisition cost and lifetime value?
Target metrics:
  • Top 3 customers: Less than 40% of revenue
  • Recurring revenue: At least 60% of total
  • Customer churn: Below 10% annually
  • Customer concentration: Diversified across 20+ customers

Checklist Item #4: Team & Systems Documentation

What to do:
  • Create an org chart showing all roles and responsibilities
  • Document your top 5 critical processes
  • Create written standard operating procedures (SOPs) for each
  • Identify key team members and their roles
  • Document customer relationships and how they’re managed
  • Create a training plan for 2026
  • Identify any key person dependencies
Why it matters: Buyers want to see that your business runs on systems, not heroics. Systems reduce risk and show that the business is scalable. Documentation proves that your team can run the business without you.
Timeline: 3-4 weeks
Questions to answer:
  • What are our 5 most critical processes?
  • Are they documented?
  • Who owns each process?
  • Are there any key person dependencies?
  • Can the business run without the owner?
Red flags to watch for:
  • No documented processes
  • All processes depend on the owner
  • No clear org chart
  • Key person dependencies

Checklist Item #5: Goal-Setting for 2026

What to do:
  • Clarify your exit timeline (1 year, 2 years, 3+ years?)
  • Define your exit vision (What does success look like?)
  • Set financial goals (How much do you need to net?)
  • Identify your biggest value gaps
  • Create a 12-month action plan to close those gaps
  • Set measurable milestones for each quarter
  • Schedule quarterly check-ins to track progress
Why it matters: Owners who set clear goals and track progress are 3x more likely to achieve their exit goals. Without a plan, you’re just hoping for the best.
Timeline: 2-3 weeks
Questions to answer:
  • When do I want to sell? (Timeline)
  • What does success look like? (Vision)
  • How much do I need to net? (Financial goal)
  • What are my biggest value gaps? (Current state)
  • What do I need to do in 2026 to close those gaps? (Action plan)
Example goals:
  • Reduce owner dependency from 60% to 30%
  • Reduce customer concentration from 50% to 30%
  • Grow revenue by 10%
  • Hire and train a sales manager
  • Document all critical processes
  • Build 5 new customer relationships

Your 30-Day Action Plan

Week 1 (Dec 1-7):

 Schedule meeting with your CPA for financial review

 List your top 20 customers and revenue

 Create org chart of current team

 Clarify your exit timeline and vision

Week 2 (Dec 8-14):

 Complete financial review with CPA

 Discuss tax strategy and optimization

 Calculate customer concentration ratio

 Identify key person dependencies

Week 3 (Dec 15-21):

 Document your top 5 critical processes

 Identify your biggest value gaps

 Create 2026 action plan

 Set measurable quarterly milestones

Week 4 (Dec 22-31):

 Review all checklist items

 Schedule quarterly check-in meetings

 Communicate 2026 goals to your team

 Prepare for strong 2026 start

The Bottom Line

December is the perfect time to pause, reflect, and plan. The work you do in these final weeks will directly impact your 2026 exit readiness.
Don’t let the year end without a plan. Use this checklist to review where you stand, optimize what you can, and set clear goals for 2026.
The owners who do this work in December start 2026 with momentum. The ones who don’t? They’re playing catch-up all year.
Which will you be?

Next Steps

Ready to end 2025 strong and start 2026 positioned for success?
  1. Complete this checklist – Do the work in December
  2. Schedule your meetings – Meet with your CPA and advisors
  3. Create your 2026 action plan – Set clear goals and milestones
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About Lion Business Advisors
We help business owners use the end of the year to position themselves for successful exits. Whether you’re selling in 2026 or 2028, the work you do now matters. Let’s talk about your 2026 exit strategy.
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