Exit Planning Valuation
for UK Business Owners
Most SME owners start thinking about exit value six months before they want to sell. By that point, the factors that determine the multiple are already fixed. The business owners who achieve the best exits start their exit planning two to three years earlier.
Our exit planning valuation gives you a clear, documented view of what your business is worth today, and what specific steps will increase that number before you approach the market. ICAEW Chartered Accountant. Fixed fee.
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Kishen Patel ACA
Start Your Exit Plan
No obligation. Response within one business day. ICAEW Chartered Accountant.
ICAEW
Chartered Accountant
Big 4
Corporate Finance Training
36
Months = Ideal Planning Horizon
Why Exit Timing and Preparation Determine Your Multiple
The value of a business at exit is not simply a function of its revenue or profit in the year it is sold. It reflects the quality of earnings, the sustainability of the business model without the founder, the predictability of future cash flows, and how those characteristics compare to what buyers are paying in the current market.
Most of the factors that drive the multiple — recurring revenue, customer diversity, management depth, documented processes, and scalable infrastructure — take between 18 months and three years to build or improve. A seller who waits until six months before they want to exit has already fixed those factors. The multiple they receive reflects the business as it stands, not the business it could have been.
An exit planning valuation gives you the clarity to make deliberate decisions about where to invest your time and energy in the period before sale — not because it is required, but because it is the most direct path to a better outcome.
What the Exit Planning Valuation Covers
Current valuation — your baseline
We establish a clear, documented view of what your business is worth today, using normalised EBITDA and current sector transaction multiples. This is not a rough estimate or a broker’s guide price. It is a professional, signed valuation that serves as the baseline from which all exit planning decisions flow.
Value gap analysis
We identify the specific factors — in your business, relative to your sector — that are holding the multiple below its potential. These might include high customer concentration, owner-dependency, below-market margins, inconsistent revenue, or a weak management team. Each one is documented with a clear explanation of how a buyer’s due diligence team will view it.
Value creation priorities
Not all value gaps are equal. Some are quick to close and have a material impact on the multiple. Others are structural and require a longer timescale. We rank the value creation opportunities in order of impact and feasibility, giving you a practical framework for the period before sale.
Indicative exit range
We provide a realistic range of exit outcomes — low, central, and high case — based on where the business is today and where it could realistically be after implementing the value creation priorities. This gives you a financial planning target and helps you decide whether the exit timeline is appropriate.
Tax and structure considerations
Exit planning without tax planning is incomplete. We work with your existing advisers — or refer you to appropriate specialists — to ensure the structure of any future transaction is as tax-efficient as possible. Business Asset Disposal Relief, share vs asset deals, earn-out structures, and pre-sale reorganisation are all within scope.
The Exit Planning Timeline
Before exit
Baseline valuation and value gap analysis
Commission an independent exit valuation. Understand exactly what your business is worth today, what is holding the multiple back, and what a realistic exit proceeds figure looks like. Begin addressing value gaps.
Before exit
Refresh valuation and review progress
Commission a refreshed valuation to measure the impact of value creation work. Adjust the exit strategy based on current market conditions. Begin structural and tax planning with legal advisers.
Before exit
Pre-sale valuation for deal process
Commission a final pre-sale valuation to anchor your negotiating position. Appoint M&A adviser. Begin preparing information memorandum and due diligence data room.
Exit
Negotiate from strength
You enter any deal process knowing exactly what your business is worth, why, and what you are and are not prepared to accept. The signed valuation report is your anchor in every negotiation.
What Moves the Multiple
The five factors that determine your exit value
Recurring Revenue
Predictable, contracted revenue reduces buyer risk and directly increases the multiple. Businesses with 70%+ recurring revenue consistently command premiums over those with project-based income.
Customer Concentration
If your top customer represents more than 20–25% of revenue, most buyers will price that risk into the deal. Reducing concentration before exit is one of the highest-ROI things a seller can do.
Owner Dependency
A business that cannot operate without the founder is not a business — it is a job. Buyers pay for businesses. Building a capable management team is the single most impactful exit planning step for most SME owners.
Margin Quality
Margins below sector benchmarks attract scrutiny and depress the multiple. We identify exactly where your margins sit relative to comparable businesses and what is causing the gap.
Growth Trajectory
Buyers pay for future earnings, not historic ones. A clear, credible growth story — supported by evidence — justifies a higher multiple than a flat or declining business with the same current EBITDA.
Your Exit Valuation Identifies All Five
Our exit planning report documents each of these factors for your specific business — not a checklist, but a detailed analysis of where you stand and what to prioritise.
Start Planning →Your Adviser
Kishen Patel ACA
ICAEW Chartered Accountant with a Big Four corporate finance background. Every exit valuation is personally prepared and signed by Kishen. You work directly with the adviser — not a junior team member.
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The best time to plan your exit
is before you need to.
No obligation. Fixed fees. ICAEW Chartered Accountant. Response within one business day.