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With clarity on timescales and drivers, forming a plan starts with setting priorities to limit you getting cold feet at the last minute whilst also keeping the potential buyer pool as wide as possible with parties whose values align beyond just paying the highest price.

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A few examples to consider early:

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Overcoming value paranoia

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For many people, the driver behind building a business is to create capital value over and above the salaries and dividends they may (or may not) extract as earnings. Understanding the costs that take gross valuation to net proceeds, such as debt, investor share, taxation and associated deal fees, is vital to determining the magic number you need to clear from a business sale.

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Knowing how proceeds will be distributed, along with undertaking personal wealth planning can counter some of the emotional turmoil associated with determining the right price to exit at.

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Untapped growth potential

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Leaving some opportunities untapped either strategically or, because you as a founder have reached your own limitations, keeps the potential buyer pool wide and is particularly attractive to private equity. Testing the market and creating a presence to prove scale of the opportunity adds further credibility to the story if you know your target buyer pool, but you may need to be flexible about the nature of role you will take in the business under new ownership and be prepared to lose some decision-making power.

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Rewarding loyalty

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You’ve built a team who have demonstrated loyalty and generated value, so you want to see them participate in the exit. You can reward the team by selecting a buyer who you know will safeguard their future employment and create growth opportunities or, you can implement some form of share option scheme. A blended approach can also work but all require foresight and advice-led planning.

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Leaving a legacy

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Perhaps you established the business with a mission and want to see the impact of this continue to grow? This pushes the buyer selection process down a slightly different route as you need to understand how that buyer will add value to the existing model, driving more impact in a sustainable way trusting in their ability to continue the legacy. Developing this level of knowledge requires investment of time to build relationships.

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These examples are the tip of the iceberg in considering factors to integrate into a plan, all of which require foresight and consideration well in advance of pushing the exit button.

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If you would like to discuss development of a tailored exit plan, it is never too early, or too late to start info@theimplicit.co.uk