How to effectively plan your exit strategy

By DTE Business Advisers

31 Jan 2023

By outlining the options available, why, and when to plan, this blog post by Ben Fallows will equip you with the knowledge to create an effective exit strategy.

WHAT IS AN EXIT STRATEGY?

An Exit Strategy relates to a strategic plan outlining the means by which the owner(s) of a business can reduce or dispose of their stake in that company.

Amongst other considerations, this plan should cover:

  • When to exit.
  • How to exit.
  • What the legacy might look like.
  • Is the future of the business secure?
  • Who might be the best potential buyers?
  • How to achieve maximum value

There are a number of options available to business owners. Choosing the most appropriate strategy will depend on:

  • The nature of the business and the sector in which it operates.
  • The financial performance of the business.
  • The dynamics of the ownership and leadership teams.
  • Overall economic climate.
  • The availability of finance.

WHAT ARE THE OPTIONS AVAILABLE TO YOU?

Whilst not exhaustive, some of the options available include:

  • Sale of the business to a third party – either a trade buyer or financial investor. This is a common option for SMEs.
  • Sale of the business to employees (Management Buy-Out).
  • Sale of the business to a family member(s).
  • Employee ownership – selling or gifting shares in the business to an employee-owned trust.
  • Initial Public Offering – offering shares to the public via a listing of the business on a stock exchange. This option is less common for SMEs.

WHY CREATE AN EXIT STRATEGY?

Having a well-defined exit strategy can be beneficial to business owners and other stakeholders such as lenders and/or investors for many reasons. This includes, but is not limited to:

  • Maximising shareholder value.
  • Personal tax planning.
  • Providing control over when to exit.
  • Securing the future for the business.
  • Incentivising and retaining top talent and employees.
  • Making sure legal and due diligence considerations are addressed (these can impact value).
  • Reducing the time to exit.

WHEN SHOULD YOU CONSIDER AN EXIT STRATEGY?

It is never too early to begin planning your exit strategy. Although it may seem unusual to pre-empt your departure, we would usually recommend formulating your exit strategy at least 12-24 months prior to beginning the exit process. This ensures that the business is prepared for sale and there is a focus on the areas which are likely to be key value drivers for buyers. A trade disposal process can typically take anywhere from 6 months to a year.

 

START PLANNING YOUR EXIT STRATEGY NOW

At DTE Corporate Finance we have extensive experience in formulating and executing exit strategies. Our team has acted on many transactions in a variety of sectors and at a large range of valuations.

Whilst every transaction is unique, our experience of completing transactions over the years means we have the expertise required to work with you on developing an exit strategy. This is tailored specifically to you and your business requirements.

To learn more about how we can help, our corporate finance team are offering a shareholder review session. If this is of interest to you, please get in touch.

We also work closely with our tax team to prepare tax-efficient strategies for business owners and maximise realisations.

If you are interested in discussing which options may be available to you, either now or in the future, please contact us on 0161 819 1910 or [email protected].

Latest news

1

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms acquisition to a2e Industries Graham Engineering

Graham Engineering confirms acquisition to a2e Industries

01 Jul 2025

3

Training 2000 celebrate 'Good' rating by Ofsted Training 2000

Training 2000 celebrate 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Business Bike Club – July
Chamber Logo1.png.png
LBV Hub Networking
01 Jul 2025 - 01 Jul 2025

Business Bike Club – July

Various, Lancaster, LA

08:00 - 09:30

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin