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The 2026 Business Exit Planning Report: How to Prepare, Protect & Prosper
When It’s Time to Sell Your Business

The no‑nonsense UK playbook from ExitPlanning.co.uk

Trusted exit advisers to SME business owners

£500k–£5m turnover

Why Exit Planning Matters More Than Ever

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For many UK business owners, their company isn’t just a source of income, it’s their life’s work. Yet when it comes to planning a business exit, far too many leave it until the last minute.

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The reality is that the process of exiting a business whether through a trade sale, management buyout (MBO), or employee ownership trust (EOT) can take 12 to 36 months to complete. Proper preparation can make the difference between a life-changing sale and a stressful disappointment.

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The Changing SME Landscape

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The UK SME market is evolving rapidly. Many businesses built in the 1990s and early 2000s are now run by founders approaching retirement age. The post-pandemic environment, shifting consumer habits, and rising interest rates have made it more important than ever to plan ahead.

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Buyers are becoming more selective. They want robust systems, recurring revenue, and management independence, not a business that collapses once the owner steps away.

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Exit planning bridges the gap between where your business is now and where it needs to be to attract the right buyer, at the right price, on the right terms.

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The “My Business Is My Pension” Trap

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We hear it every week: “My business is my pension.”


Unfortunately, too many owners discover too late that their business won’t fund the retirement they hoped for.

Without proper planning, profit might not translate into value. Buyers discount for risk, and without preparation, that risk looks high. The key is to turn your business into an investment-ready asset, one that’s transferable, desirable, and sustainable without you.

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The Benefits of a Well-Planned Exit

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  • Higher Sale Value – well-prepared businesses typically achieve 20–50% higher multiples.

  • Faster Sale Process – less time wasted, fewer surprises in due diligence.

  • Wider Buyer Pool – more buyers means stronger negotiation leverage.

  • Peace of Mind – knowing you’ve maximised both financial and personal outcomes.

 

The Cost of Doing Nothing

 

If you were to step away tomorrow, what would happen?

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  • Would clients stay?

  • Would the team know what to do?

  • Would the systems hold up without you?

 

If the answer is uncertain, now is the time to act. Exit planning is not a luxury, it’s insurance for your future.

 


 

 

Ready to see how prepared your business really is?
 

What Is Business Exit Planning? (And Why It’s Not Just About Selling)

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Exit planning isn’t simply about putting your business on the market. It’s a strategic process designed to align your business, financial, and personal goals, ensuring that when you do exit, you do so on your own terms.

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A Process, Not an Event

​Most business owners start thinking about selling when they’re already exhausted, ill, or frustrated. By then, options are limited. True exit planning should start three to five years before you intend to sell.

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It’s about shaping the business so that it can thrive without you, achieve a strong market valuation, and attract the right acquirer — whether that’s a competitor, investor, management team, or employee trust.

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Think of it as future-proofing your legacy.

 

Aligning Business and Personal Goals

Before you decide how to exit, you must understand why you’re exiting.

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Ask yourself:

  • What do I want to achieve financially?

  • Do I want to retire fully or stay involved?

  • What will my life look like after the sale?

 

Exit planning connects these answers with your company’s operational and financial direction. The best plans don’t just prepare your business, they prepare you.

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Common Misconceptions About Exit Planning

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  1. “I’ll plan when I’m ready to sell.”
    By then, it’s too late. Buyers pay for preparation.
     

  2. “My accountant handles that.”
    Accountants play a key role, but exit planning goes far beyond tax. It covers strategic positioning, leadership transition, and buyer readiness.
     

  3. “I’ll get the price I deserve.”
    The market doesn’t reward effort; it rewards transferability and proof. Value is in the eyes of the buyer.
     

  4. “My industry’s too niche.”
    Niche can be powerful, provided the business is well-documented and scalable.
     

The Pillars of Successful Exit Planning

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  • Value Optimisation: improve performance, margins, and recurring revenue.

  • Succession Readiness: build a leadership team that can operate independently.

  • Risk Reduction: tidy contracts, remove dependencies, strengthen compliance.

  • Market Positioning: make your business visible to the right buyers.

  • Personal Preparation: plan your next chapter, emotionally and financially.

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Exit Planning as a Continuous Process

Just as you update your business plan each year, your exit plan should evolve too. Market conditions, buyer demand, and your own circumstances change.

 

An exit plan keeps you flexible and ready, not forced into reactive decisions.

Understanding Your Business Exit Options

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No two exits are the same. Every business, owner, and situation is unique. The key to a successful transition is knowing which type of exit best suits your goals, timeline, and company structure.

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The Strategic Trade Sale

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For many business owners, the trade sale remains the most rewarding and common route.
This is where your business is acquired by another company, often a competitor, supplier, or strategic buyer seeking synergies, market share, or new capability.

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A well-positioned business with strong margins, brand reputation, and recurring revenue can command impressive premiums. Strategic buyers are often willing to pay more than financial buyers, because they see added value beyond pure profit.

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Typical advantages include:

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  • Immediate financial exit for the owner.

  • Potential for earn-out or consultancy period if you wish to stay involved.

  • Access to wider resources and stability for your team.

 

However, preparation is vital. Buyers will scrutinise every detail of your business, from contracts to customer churn and you’ll need a professional adviser to manage negotiations and confidentiality.

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The Management Buyout (MBO)

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An MBO allows your existing management team to purchase the business they help run. It’s ideal when you have a capable team who understand the operation and culture.

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Benefits include continuity, minimal disruption, and a high chance of successful completion.


The challenge? Funding. Management teams often require support from lenders or investors, meaning the structure can be more complex and staged.

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If you’re emotionally invested in your staff and prefer a gradual handover, an MBO can be a very attractive route.

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The Employee Ownership Trust (EOT)

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The Employee Ownership Trust model, first introduced in the UK in 2014 has become an increasingly popular, tax-efficient option.

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Under an EOT, at least 51 per cent of the company is sold to a trust established for the long-term benefit of the employees. This structure allows the owner to exit at full market value completely tax-free on Capital Gains, provided the qualifying conditions are met.

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An EOT preserves culture, rewards loyalty, and maintains legacy, while giving employees a vested interest in future success. It isn’t suitable for every business (particularly those without stable profits or strong leadership teams), but for the right companies it can be a transformational option.

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Partial Sale or Investment Partner

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Sometimes the best route isn’t an immediate exit but a partial sale. This involves selling a share of the business to a new partner, often a private investor, growth fund, or trade partner while you retain equity and involvement.

It can help de-risk your personal wealth, provide growth capital, and pave the way for a full exit later at a higher valuation.

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Family Succession

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Passing a business to the next generation is a traditional route, but it comes with unique challenges. Few successors share the same appetite or capability, and emotional factors can complicate matters.

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If family succession is your goal, early planning is critical, particularly around training, share transfers, and inheritance tax implications.

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Choosing the Right Path

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The best option balances your personal goals with business realities. Many owners initially think they want a trade sale but later discover that an MBO or EOT better suits their values and team.

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What matters most is informed decision-making with advice grounded in experience, not emotion.​

The Value Question: What’s Your Business Really Worth?

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Understanding value is central to every exit. Yet most owners overestimate by 50 per cent or more.


Valuation is part science, part art, and entirely dependent on how well-prepared and well-positioned your business is when you enter the market.

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Price vs Value

Price is what a buyer pays. Value is what they perceive they’re getting.


Two businesses with identical profits can command vastly different sale prices depending on:

  • Reliability of earnings.

  • Strength of management.

  • Recurring or contracted revenue.

  • Customer concentration.

  • Brand, IP, and reputation.

 

The buyer isn’t paying for your past effort, they’re paying for future profit and reduced risk.

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How Buyers Think

Buyers fall into two main categories: financial and strategic.

  • Financial Buyers (such as private investors or funds) focus on return on investment and future cashflow. They’ll pay based on profit multiples and expect solid systems.

  • Strategic Buyers (trade acquirers in your sector) look for synergy. They might pay a premium if your business helps them enter new markets, secure supply, or eliminate competition.

 

Understanding this difference helps you prepare your business story and valuation argument correctly.

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Valuation Methods

While valuation is bespoke, most SME sales in the UK use one of three common methods:

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  1. EBITDA Multiple – the most widely used. A multiple (typically 3× to 6×) of normalised profits adjusted for one-off costs and owner benefits.
     

  2. Asset-Based Valuation – suitable for asset-heavy sectors such as manufacturing or property.
     

  3. Revenue Multiple or Hybrid – used for fast-growth or subscription-based models.

 

A professional valuation doesn’t just put a number on your business, it identifies drivers of value you can enhance before sale.

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The “Buyers’ Discount” Problem

Every buyer will look for risk and uncertainty to justify a lower offer. Weak documentation, dependence on the owner, or unverified figures all invite discounts.

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Good exit planning reverses this trend. By preparing robust evidence and clean data, you remove excuses for a buyer to chip away at value.

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When to Get a Valuation

The best time to value your business is before you need to sell. Early valuations act as a roadmap, showing where to focus improvement. Many owners are surprised how small operational changes can increase value by hundreds of thousands of pounds.

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Think of it as your business fitness check, the starting point for every successful exit​​

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Preparing Your Business for Sale: Step-by-Step

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The difference between an average sale and an exceptional one is preparation. Most business owners underestimate how much groundwork is needed to make their company “sale ready.” Proper preparation doesn’t just help you find a buyer, it helps you find the right buyer, on your terms, and often at a higher price.

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1. Get Your Financial House in Order

Buyers pay for clarity and certainty. Before you take your business to market, ensure your financial records are impeccable.

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That means:

  • Three years of accurate, accountant-prepared accounts.

  • Clearly separated owner remuneration and discretionary expenses.

  • Up-to-date management accounts showing monthly performance.

  • Full breakdown of recurring revenue, margins, and customer retention.

 

If your figures are confusing or inconsistent, buyers will discount for risk. Clean numbers inspire confidence — and confidence translates into value.

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2. Systemise and Simplify

Your business should be able to operate without you. That’s the golden rule of transferability.

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Document key processes, policies, and workflows. Ensure there’s a clear structure for customer handling, supplier management, and operational decision-making.

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Think of your business like a franchise, if someone new bought it tomorrow, could they follow your manual and run it successfully?

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3. Strengthen Your Management Team

Businesses that depend entirely on their owner struggle to sell.


A capable management team adds real value. Train, delegate, and empower your senior staff well before you begin the exit process.

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Buyers love management continuity because it reduces disruption. Even small businesses benefit when roles are clearly defined, and responsibilities are shared.

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4. Secure Contracts and Key Relationships

Buyers want predictable future income. Review all major client, supplier, and employee contracts. Are they written, signed, and transferable?

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Where possible, move from verbal agreements to formal contracts. Secure long-term supply deals or recurring revenue models. Small changes in documentation can make a big difference in perceived stability.

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5. Tidy the Legal and Compliance Side

Before due diligence begins, review all legal documentation:

  • Company filings and shareholder agreements.

  • Employment contracts and staff handbooks.

  • Health and safety compliance.

  • Intellectual property (IP), trademarks, and domain ownership.

 

The goal is to remove any “red flags” before a buyer finds them.

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6. Protect and Promote Your Brand

A strong, trusted brand commands attention and often a premium.


Update your website, review your social media presence, and ensure consistency across all platforms. Buyers research online before making contact.

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A polished, professional online footprint signals credibility and care.

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7. Keep Growth Going

Nothing undermines confidence faster than a dip in sales during the exit process. Maintain focus on business performance right up to completion. Buyers will expect to see continuing momentum, not decline.

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8. Confidentiality and Internal Communication

Managing confidentiality is critical.


Plan when and how to inform staff, suppliers, and customers. Leaks can damage morale or client relationships. Experienced brokers and advisers manage this process professionally to protect value.

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Wondering how “sale ready” your business really is?

Timing Your Exit: When Is the Right Time to Sell?

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You’ve built your business over years, perhaps decades. Knowing when to sell can be just as important as knowing how. Timing affects not only price but also buyer appetite, deal structure, and tax efficiency.

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1. Personal Readiness

Ask yourself some honest questions:

  • Am I mentally ready to step away?

  • Do I have a clear vision for what comes next?

  • Could I handle a 6–12 month transition period post-sale?

 

Exiting too early can leave you feeling unfulfilled. Waiting too long can reduce value as energy, growth, and innovation decline. The right time is when your business is thriving and your personal goals align.

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2. Market Conditions

External factors can influence your timing.


Strong buyer demand, favourable tax rules, and economic stability all create windows of opportunity. Conversely, political uncertainty or interest rate spikes can slow deals.

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Experienced advisers track market sentiment and can help you decide whether to proceed now or prepare for a better window.

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3. Selling from Strength

The best time to sell is before you need to.
 

Buyers want momentum, not decline. If you wait until profits dip, key staff retire, or personal motivation fades, you’ll lose leverage.

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A well-timed sale occurs when your business is growing, systems are strong, and you still have energy to negotiate confidently.

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4. Tax and Legislation Windows

UK tax policy changes regularly. For instance, the rules for Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) and the Employee Ownership Trust (EOT) have shifted over time. Early planning ensures you take advantage of favourable tax rates while they exist.

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5. Emotional Timing

Exiting can be emotional. Many owners underestimate how attached they are to their business and team. Planning ahead allows for a gradual handover and time to adjust.

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6. Strategic vs Reactive Timing

A strategic exit is proactive, designed around business value, buyer readiness, and personal goals.
A reactive exit happens when health, stress, or market shocks force your hand. Only one of these puts you in control.


Thinking of selling within the next few years?

Common Mistakes That Kill Business Value

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Even the strongest businesses can stumble during the exit process. Often, it’s not performance that derails a deal, it’s avoidable mistakes.


Understanding what can go wrong helps you protect the value you’ve worked so hard to build.

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1. Leaving Planning Too Late

The biggest mistake of all.


Many business owners only start planning when they’re tired, burned out, or under pressure. By then, value enhancement opportunities are limited, and timing options are reduced.

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A rushed sale invites lower offers and weaker terms. By starting 2–3 years early, you give yourself time to fix weaknesses, build recurring revenue, and choose your buyer, not the other way around.

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2. Over-Reliance on the Owner

Buyers fear businesses that depend on one person. If all key decisions, relationships, and technical knowledge sit with you, your company’s value will be heavily discounted.

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The solution? Train successors, delegate authority, and document processes. A business that runs smoothly without its owner is instantly more attractive.

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3. Mixing Personal and Business Finances

Blurring the lines between personal and business spending creates headaches during due diligence. Keep accounts clean, remove personal expenses, and ensure all intercompany transactions are properly recorded.

Buyers need clarity, not detective work.

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4. Poor Staff Communication

Handling internal communications during a sale can be tricky. Tell staff too early and you risk panic. Tell them too late and you risk resentment.

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A good exit plan includes a communication timeline and key talking points to maintain morale and trust.

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5. Ignoring Tax Planning

Leaving tax planning until the deal stage can cost you dearly. There are efficient structures available — from share reorganisations to EOTs and reliefs, but most need to be arranged well in advance.

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A pre-sale tax review can save tens or even hundreds of thousands in unnecessary liabilities.

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6. Weak Documentation

Buyers will scrutinise every contract, lease, and licence. Missing paperwork, unsigned agreements, or outdated policies slow everything down.

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Keep a secure digital data room ready early in the process. Preparation here demonstrates professionalism and inspires buyer confidence.

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7. Unrealistic Expectations

Every owner believes their business is special and it usually is. But unrealistic expectations about value or process can derail negotiations.

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Listen to objective advisers who understand the market. They can help you balance optimism with evidence, ensuring you don’t scare away good buyers or settle for less than your business deserves.

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8. Choosing the Wrong Advisers

Selling a business is not a DIY project. You only get one chance to get it right. Surround yourself with advisers who specialise in SME transactions, not just accountants or solicitors who occasionally handle sales.

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Look for experience, sector understanding, and transparency on fees.

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​Want to know how your business measures up?

Building a Deal Team: The Advisers You’ll Need

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A successful business exit is a team effort. Each adviser plays a specific role in protecting your interests, maximising value, and ensuring a smooth transition.

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Here’s who you’ll need on your side and why.

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1. Exit Planning Consultant

Your exit planning consultant acts as the architect of your overall strategy. They coordinate your goals, financials, and timing, and ensure every moving part aligns toward your ideal outcome.

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They’ll help you:

  • Define your personal and business objectives.

  • Identify the best route to exit (trade sale, MBO, EOT, etc.).

  • Prepare the business for due diligence.

  • Introduce specialist partners where needed.

 

At ExitPlanning.co.uk, we often act as this first point of contact, helping business owners see the big picture before committing to a specific route.

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2. Accountant

Your accountant provides the financial backbone of your plan. They’ll help tidy your books, prepare valuation data, and ensure financial disclosures stand up to buyer scrutiny.

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An accountant experienced in business sales will understand how to present figures to show true maintainable earnings and adjust for one-off or discretionary costs.

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3. Corporate Lawyer

Your solicitor handles contracts, warranties, and legal negotiations. They’ll draft Heads of Terms, Sale & Purchase Agreements, and guide you through due diligence.

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Avoid generalist solicitors, choose a lawyer who deals with business sales regularly and understands completion mechanics.

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4. Business Broker or M&A Adviser

Your broker or adviser manages the marketing and negotiation process, introducing qualified buyers and maintaining confidentiality.

They’ll:

  • Prepare your Information Memorandum.

  • Approach strategic buyers confidentially.

  • Negotiate offers and Heads of Terms.

  • Manage communications between parties.

 

For SMEs, working with a reputable business broker such as Exits.co.uk can make the entire process more structured, secure, and successful.

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5. Wealth and Tax Planner

Post-sale, your wealth planner helps manage the proceeds, minimise tax, and secure your future lifestyle. They can advise on pension structures, trusts, and investment diversification.

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It’s best to involve them early, ideally during the pre-sale planning stage to ensure your deal is structured efficiently from day one.

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6. The Role of Communication

Your advisers will form a team around you. Clear communication between them is vital. Disconnected advice often leads to conflict or delays. Choose professionals who collaborate effectively and understand their shared goal: achieving your best outcome.

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Need help assembling the right team?

Tax Planning and Structuring for a Business Exit

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Even a perfectly timed and well-negotiated sale can be undermined by poor tax planning.
In the UK, the way your deal is structured can dramatically affect how much of the proceeds you actually keep. Early tax advice isn’t just about compliance — it’s about strategy.

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1. Plan Early to Protect Value

Tax planning should start at least 12 to 24 months before your intended exit. Waiting until the deal stage limits your options and may prevent access to valuable reliefs.

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Working with an experienced tax adviser who understands business sales ensures your company is structured efficiently and legally for the best outcome.

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2. Understand Capital Gains Tax (CGT)

When you sell shares in your company, the profit you make is typically subject to Capital Gains Tax (CGT). The standard rate for higher-rate taxpayers is 20%, but there are key reliefs that can reduce this significantly.

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Business Asset Disposal Relief (BADR)

Previously known as Entrepreneurs’ Relief, BADR can reduce CGT to 10% on the first £1 million of qualifying lifetime gains. To qualify, you must:

  • Have owned the business for at least two years.

  • Be an employee, director, or office holder.

  • Own at least 5% of the shares and voting rights.

 

Although the £1m cap has reduced from earlier levels, BADR remains a major incentive for planning ahead.

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Employee Ownership Trust (EOT) Exemption

If you sell a controlling interest (51%+) to an EOT that meets HMRC conditions, you may pay zero Capital Gains Tax on the entire sale. This exemption is unique to EOTs and offers an exceptional opportunity for owners looking to reward staff while exiting tax efficiently.

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3. Share Sales vs Asset Sales

In most SME transactions, a share sale is preferable.


Selling shares transfers ownership of the company as a whole, often qualifying for CGT reliefs and maintaining business continuity.

In contrast, an asset sale involves selling the individual assets and goodwill of the business. This may result in higher tax exposure, double taxation, or additional complications.

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However, in some situations, such as distressed or non-trading entities an asset sale may be the only practical route.

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4. Consider Pre-Sale Restructuring

If your business owns property, investments, or non-trading assets, these may affect relief eligibility. Pre-sale restructuring can separate trading and non-trading elements, helping to protect reliefs and simplify the deal.

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Seek specialist advice before making any transfers. Poorly timed or mismanaged restructuring can invalidate reliefs or trigger unnecessary tax.

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5. The Role of Tax Advisers and Wealth Planners

Your accountant or tax adviser will handle compliance, but a strategic tax planner can often identify creative yet compliant ways to enhance your net proceeds.

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Post-sale, a wealth planner can help invest proceeds tax-efficiently using pension allowances, ISAs, trusts, or venture investment schemes depending on your appetite for risk and lifestyle goals.

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6. The Cost of Inaction

Failing to plan can cost tens of thousands, sometimes hundreds of thousands in unnecessary tax.
Even small adjustments in deal structure, timing, or ownership can have significant effects.

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Early engagement is the best insurance policy you’ll ever buy.

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Want to keep more of what you sell for?

After the Sale: Life Beyond the Exit

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Selling your business isn’t the end, it’s a new beginning.


For many owners, it’s the first time in decades that they’re not defined by their company. The emotional, financial, and personal transition can be significant.

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1. Adjusting to Life After Ownership

After years of daily responsibility, the sudden absence of control can feel strange. Some owners describe it as both liberating and disorientating.

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It helps to plan your post-sale life before completion. What will your days look like? How will you find purpose and direction? Whether it’s mentoring, investing, travel, or new ventures, having a vision helps make the transition smoother.

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2. Protecting Your Proceeds

A successful sale can generate substantial wealth. It’s vital to protect and structure that wealth wisely.
Work with independent financial planners to assess risk tolerance, diversify investments, and plan for long-term security.

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Avoid high-risk reinvestments or unverified “opportunities” that appear post-sale they’re common and often regrettable.

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3. Considering a Partial Role

Many deals include an earn-out or consultancy period. Remaining involved part-time can ease the transition and ensure a smooth handover for the buyer.

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However, set clear boundaries. Define roles, timeframes, and decision-making authority in writing to prevent friction.

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4. Giving Back

Some owners use their experience to support other entrepreneurs or charities.


Mentoring younger business owners, investing in start-ups, or joining advisory boards are all rewarding ways to stay connected to the business world without the pressure of ownership.

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5. Reflecting on Legacy

Your business likely employed people, supported families, and contributed to your community. Selling it doesn’t erase that legacy it strengthens it. The next chapter is about carrying that success forward in new ways.

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6. Moving On with Confidence

Whether you’re celebrating or feeling uncertain, remember that a successful exit is a rare and commendable achievement. You’ve built something of real value, navigated complexity, and secured your future.

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That’s not the end of the story, it’s proof of what’s possible when experience meets preparation.

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Thinking about your next chapter?

Conclusion: Start Planning Your Exit Today

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If there’s one message to take away from this guide, it’s simple, the earlier you plan, the better your outcome will be.

 

Business exit planning isn’t about selling tomorrow. It’s about building options shaping your business so that, when the right moment and the right buyer appear, you’re ready to act with confidence.

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The Key Lessons;
 

  1. Preparation protects value.
    A well-prepared business sells faster, more easily, and often for 20–50% more.
     

  2. Start early.
    Exit planning takes time. Begin at least two to three years before you think you’ll sell.
     

  3. Know your options.
    Whether it’s a trade sale, MBO, or EOT, understanding your routes gives you control and peace of mind.
     

  4. Value is built, not guessed.
    A professional valuation identifies what drives worth and what holds it back.
     

  5. Build your deal team.
    Surround yourself with experienced advisers who understand the SME market and your goals.
     

  6. Think beyond the sale.
    Financial planning, legacy, and purpose all matter as much as the deal itself.

 

Why Many Owners Delay (and Why You Shouldn’t)

It’s easy to delay exit planning. Daily business life is full of distractions, and thinking about selling can feel uncomfortable. But by waiting, you lose control over timing and negotiation strength.

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Buyers prefer businesses that look prepared and proactive. The sooner you start, the more options you’ll have and the more confident you’ll feel when opportunity knocks.

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Turning Knowledge Into Action

You now know what goes into a successful business exit: clarity, preparation, professional advice, and timing. The next step is to act.

Start by reviewing your personal goals. Then assess your business’s readiness, its value drivers, and potential exit routes. From there, you can design a plan tailored to your situation and objectives.

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Where to Begin

If you’re reading this, you’re already ahead of most business owners.


Now is the time to turn that insight into progress. At ExitPlanning.co.uk, we help UK business owners prepare, position, and plan for a successful sale or transition,  confidentially and without pressure.

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Whether you’re five years from retirement or just exploring your options, our structured Exit Planning Review will help you:

  • Understand your potential valuation range.

  • Identify improvement areas to build value.

  • Clarify which exit route best fits your goals.

  • Create a clear, actionable roadmap.

 

The Smart Exit Starts Here

Your business is likely one of your biggest assets and perhaps the result of a lifetime’s work. Treating your exit with the same care and strategy you gave to building it is the best investment you can make.


Ready to start your exit journey?

The Complete Exit Planning Timeline

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Exit planning is rarely a single event; it’s a series of deliberate, overlapping steps. Here’s a realistic month-by-month outline of how to prepare, sell, and transition successfully.

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24–18 Months Before Exit – Laying the Groundwork
 

  • Review personal and financial goals.

  • Commission an independent business valuation.

  • Identify gaps in leadership, systems, and contracts.

  • Begin documenting processes and delegating key responsibilities.

 

This stage sets direction. Treat it as a diagnostic phase, what needs improving to make your business truly sale-ready?

 

18–12 Months – Strengthening the Business
 

  • Fix weak spots revealed by valuation.

  • Secure multi-year contracts with major clients.

  • Renew or register intellectual property.

  • Implement clear management reporting.
     

Focus on turning one-off revenue into recurring income. Buyers will pay a premium for predictable earnings.

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12–9 Months – Structuring and Tax Planning
 

  • Meet with a specialist tax adviser.

  • Review shareholdings and ownership structures.

  • Separate personal assets from the trading company.

  • Explore options such as MBO, EOT, or trade sale.
     

Early tax advice now can save significant sums later.

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9–6 Months – Preparing for Market
 

  • Appoint an exit adviser or broker.

  • Develop your Information Memorandum.

  • Establish a secure data room for due diligence.

  • Decide on your confidentiality strategy.
     

This is when your “sale story” is crafted, the narrative that positions your business as valuable and future-ready.

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6–3 Months – Marketing and Negotiation
 

  • Confidentially approach pre-qualified buyers.

  • Evaluate indicative offers and fit.

  • Conduct management meetings and Q&A.

  • Negotiate Heads of Terms.
     

A good adviser will manage buyer interest, maintaining competitive tension to maximise offers.
 

3–0 Months – Due Diligence and Completion

  • Provide documentation and respond promptly.

  • Agree final purchase price and adjustments.

  • Sign the Sale & Purchase Agreement.

  • Complete and celebrate responsibly!
     

At completion, funds are transferred and legal ownership passes. Depending on structure, you may stay for a transition period.


Want a personalised timeline for your business?
[Book a free Exit Planning Roadmap Session today.]

Real-World Exit Case Studies

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Case Study 1 – Strategic Trade Sale Success

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The Business: A £2.8m-turnover engineering firm in the Midlands.


The Owner’s Goal: Retirement and full exit within 18 months.

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After a valuation identified heavy owner dependency, the team worked on delegation, secured new recurring service contracts, and refreshed marketing materials.

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Within a year, the company was introduced confidentially to three strategic acquirers. Competitive tension produced a final offer 34% higher than the initial valuation, with 90% of funds paid at completion.

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Key Lesson: Preparation time directly increased value. The owner’s focus on systemising and delegating created confidence for buyers.

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Case Study 2 – Employee Ownership Trust (EOT) Transition

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The Business: A London-based communications agency with 25 staff.


The Owner’s Goal: Reward employees, retain culture, and achieve fair market value.

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An independent feasibility study confirmed the company qualified for full CGT relief under EOT rules. The owner sold 100% of shares to the new employee trust at a fair market valuation, receiving payment from future profits over five years.

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Morale soared, client retention improved, and profits grew year-on-year under employee ownership.

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Key Lesson: For people-based businesses, EOTs can protect legacy and deliver strong long-term financial results.


Curious how these strategies could apply to your business?

Top 10 Exit Planning FAQs

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1. How long does it take to sell a business in the UK?

Most SME sales take 9–18 months from preparation to completion. Early planning shortens this window dramatically.

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2. What’s the best age to plan an exit?

There’s no fixed rule, but most owners start planning seriously between age 50 and 65. Ideally, begin five years before your intended retirement.

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3. How do I know what my business is worth?

Request an independent valuation based on adjusted EBITDA or sustainable profits. Use it as a benchmark, not a promise — buyers value risk, not just numbers.

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4. What is an Employee Ownership Trust (EOT)?

An EOT allows you to sell a controlling interest (51%+) to a trust for employees. Qualifying owners can sell tax-free on Capital Gains while rewarding staff and preserving culture.

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5. Should I tell my staff I’m selling?

Not until the time is right. Premature disclosure can create uncertainty. A professional adviser will guide when and how to communicate safely.

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6. Do I need a broker to sell my business?

Yes, for most SMEs. A broker manages confidentiality, buyer introductions, and negotiations, allowing you to focus on performance. Platforms like Exits.co.uk specialise in success-based SME sales.

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7. What if I’m not ready to retire?

You can explore a partial sale or bring in an investment partner via Mergers.co.uk, allowing you to release capital while continuing to grow the business.

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8. How can I reduce the tax on my business sale?

Plan early. Structure ownership correctly, consider BADR or EOT relief, and seek advice from an experienced tax planner at least a year in advance.

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9. What happens after the sale?

Many owners take on a short-term consultancy or earn-out period. Planning your post-sale lifestyle helps avoid the “now what?” feeling.

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10. What’s the first step I should take today?

Start with an honest review of your goals, financials, and business readiness. From there, book an Exit Planning Review to turn intention into a roadmap.

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Final Thought

Whether your goal is retirement, succession, or growth through partnership, exit planning is about control — over timing, value, and outcome.
The earlier you prepare, the more choice and confidence you’ll have when opportunity arrives.

Got more questions about selling your business?

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