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Preparing a SME for exit: the strategy evey business should adopt today
- gldewhirst
- Sep 16
- 4 min read
Updated: Sep 19
Preparing an SME for exit - whether through a sale, merger, or succession - is ultimately about maximising value, minimising risk, and ensuring the business can thrive independently of its founder. But the principles behind an exit readiness plan aren’t only useful at the point of sale. In fact, they provide a powerful framework for building and running a stronger business at any stage.
While taking risks is often necessary in the early days of growth, most other elements of exit planning are simply smart business practice. By setting up your processes and systems with both investors and customers in mind - balancing commercial goals with operational efficiency - you create a business that is more resilient, scalable, and attractive to stakeholders. More importantly, you save yourself a huge amount of time and effort further down the line if exit is on the cards at some point.
Here’s a straightforward plan you can adapt to your business, whatever stage of growth you’re in.
1. Clarify objectives & exit strategy
Decide on the type of exit: trade sale, management buyout (MBO), employee ownership trust, private equity, or family succession – what’s the most likely scenario for your business?
Set personal goals: financial (how much do you need?), timing, and role post-exit (stay on short-term vs. walk away) – it doesn’t matter if you’re not sure, just hypothesise.
Align stakeholders: ensure board, family, or shareholders share the same vision.
2. Financial preparation
Robust financials: ensure 3–5 years of accurate, audited accounts – just starting out? Ensure your accounts are well set up from day one.
Forecasts & growth plans: buyers want to see clear future potential, not just past performance – do your research, analyse your figures and extrapolate.
Normalise earnings: adjust for one-off expenses or non-core costs to show true profitability.
Debt & liabilities: restructure or pay down where possible.
3. Operational efficiency
Process mapping: document core processes to show the business runs smoothly – this is much easier to do at the beginning rather than 5 years in.
Reduce reliance on owner: build management layers so the business isn’t dependent on one person – business continuity planning is sensible at every stage of growth.
Systems & tech: upgrade legacy systems to modern, scalable platforms – us flexible and more affordable SAAS.
Supplier/customer contracts: formalise agreements to reduce uncertainty.
4. People & leadership
Succession planning: ensure key roles are filled, and leadership continuity, plus staff development plans are clear.
Retention strategies: lock in top talent through incentives or retention bonuses.
Culture: articulate company values and demonstrate a strong, engaged workforce – this is much easier to design and “bake in” when a company is in its early stages.
5. Marketing & brand strength
Clear positioning: a differentiated brand increases valuation and will always be easier to communicate to stakeholders.
Growth pipeline: show consistent lead flow and conversion processes.
Customer diversification: reduce overreliance on a few key clients – not always possible at the early stages, but essential to work towards.
Digital presence: ensure website, social, and reputation reflect a professional, growth-ready company. All businesses should ensure digital optimisation at every stage of growth. Effective doesn’t have to mean big budget.
6. Risk management
Legal & compliance: resolve disputes, tidy IP ownership, review contracts.
Regulatory readiness: especially important in sectors with FCA, GDPR, or ESG requirements. Working towards key standards such as ISO, BS or B Corp can also be valuable to your business.
Insurance & protections: ensure adequate cover is in place.
ESG & sustainability: increasingly a factor in buyer due diligence, often essential for supply chain participation, and can make a business more attractive to all its stakeholders.
7. Value enhancement activities
Highlight scalability: show how growth could accelerate with more capital or market access.
Identify synergies: prepare evidence of how a buyer could extract additional value.
Storytelling: package the business into a compelling narrative for investors/acquirers.
8. Exit process preparation
Advisory team: engage a corporate finance advisor, lawyer, tax specialist, and consultant.
Data room: prepare a clean, well-organised digital folder of all financial, legal, and operational documents.
Valuation & timing: understand what multiples are achievable in your sector and pick a favourable time.
Communication plan: plan when and how to tell staff, clients, and suppliers.
Timeline (typical 18–36 Months)
18–24 months out: Start succession planning, financial clean-up, and operational improvements.
12–18 months out: Strengthen brand, pipeline, and contracts; resolve risks.
6–12 months out: Engage advisors, build data room, test valuations.
0–6 months out: Enter negotiations, due diligence, and close the deal.
Conclusion
Exiting a business isn’t just a transaction - it’s the culmination of years of effort. The most successful exits happen when SMEs prepare early, professionalise operations, and create a business that’s attractive, scalable, and low risk for buyers.
At Velara Solutions, we don’t just focus on the finish line. We help SMEs at every stage of their journey to become more efficient, resilient, and growth-ready - whether you’re just starting up, scaling, or preparing for succession. By embedding good practices early and streamlining processes as you grow, you will build a business that will thrive and is more resilient to tough climates. If exit is on the cards, we can help you make it smooth, successful, and maximise value.
📞 If you’d like to explore how we can help your business achieve its goals, book your free strategy call today.
