How to maximise business value through exit planning

For many business owners, the thought of stepping away after years of building a business can feel overwhelming. Often, when you’re focused on day-to day management and operations, you’ll only think about an exit when the opportunity arises, which is often too late.

But the earlier you start exit planning, the more options and freedom you have when the time comes to move on.

Alex Canham, Corporate Finance Manager, explains how business exit planning helps you to consider more than just the final “transaction” on exit. And why its holistic, medium to long term approach aims to help both you and the company to achieve a smooth and financially successful exit.

What is an exit plan?

Exit planning is different to an exit strategy.

The latter is the “what” – what type of exit are we aiming to pursue? For example, a trade sale, a management buyout or family succession.

Exit planning encompasses this, whilst also considering the “how” – how are we going to achieve our strategy and what do I need to do in advance?

Typically, business owners can focus on the end transaction but neglect the preparation in advance of an exit. And many owners prepare for an exit from their business too late, thereby reducing value or creating rushed negotiations.

Strong exit planning helps to make sure you get the maximum value and a smooth transition – often planning 2 – 5 years plus in advance depending on the nature of your business.

Because a strategy without a plan often leads to problems. And a plan without a strategy is unfocused. You need both.

Why is exit planning so important?

It’s a stark statistic that the significant majority of businesses listed for sale, fail to sell; with failure rates of 70%-80% cited.

But successful exit planning can help to:

• Increase business valuation multiples by looking at the business in its current form. So, identifying value gaps and setting a plan to reduce these. This might be in the form of implementing a growth strategy, reviewing customer relations and revenue quality or strengthening financial reporting and data quality. There are many considerations – often bespoke to each business.
• Make the business more attractive to buyers. As a business owner you may well be emotionally and inextricably linked to the business – after all you’ve probably invested significant time and sweat in building it. Exit planning allows you to take a step back and consider the business marketability from a potential buyer’s perspective.  Encompassing more than just the “numbers”, the business as a whole needs to be considered, including areas such as:
  • Operational readiness
  • Legal and compliance
  • Commercial strength
  • People and leadership
  • Technology and systems

• Align shareholder objectives. It’s not uncommon for shareholders to have differing personal requirements and timeframes when it comes to an exit. So the earlier these are considered, the better. Key considerations that we often see here are personal wealth planning for shareholders, and considerations for life after exit. Not all shareholders are emotionally ready for an exit at the same time!
• Improve tax efficiency. No one holds a crystal ball when it comes to future tax changes BUT exit planning aims to work with what we know now and reviews whether the business is currently structured in the most tax efficient way for an exit. Often a restructure can take time and the earlier this is considered and implemented, the better.
• Prepare for a potential transaction. If the sale of a business is the chosen exit strategy, often significant work is required in building documentation and materials for any due-diligence process. There will also be considerations around identifying and engaging with appropriate potential buyers. The aim is to avoid entering a rushed and ill-thought-out sale.
• Opportunity to consider options outside of a business sale. For some businesses, selling is not viable, and an alternative exit route is better placed. An informed decision on all the options available in each circumstance is always better placed when made well in advance.

How do I start an exit plan?

Objective assessments of your business can be difficult as the owner. So, often the best starting point is an informal discussion with a professional adviser who can guide you on where to start, based on where you are now.

Every business is unique. So, some will benefit from a full, structured exit planning programme; others may simply require strategic guidance or a light‑touch review. The key is to start early – long before a sale becomes urgent.

We regularly receive calls from owners wanting to exit “as soon as possible”. And while our support is always available, late-stage planning often reduces value or leads to a more challenging process. By beginning earlier you’ll have more control, better outcomes and a far smoother journey.

We’re here to help

Planning an exit can feel daunting, but it doesn’t need to be.

Our Corporate Finance team, supported by specialists across the business, will work with you at every stage of the exit planning journey.

So, whether you’re just beginning to think about your long‑term plans, or you’re actively considering an exit, we offer a free of charge initial conversation to help you understand your options and start planning effectively.

To book yours, simply contact one of the team by calling 0330 058 6559 or email hello@scruttonbland.co.uk