Why Exit Planning Matters
Selling your business is likely to be the most significant financial transaction of your life. Yet surprisingly, many business owners approach this pivotal moment without adequate preparation, often leaving substantial value on the table.
The statistics are sobering: according to industry research, up to 70% of businesses listed for sale never complete a transaction. Of those that do sell, owners who invest in proper exit planning typically achieve 20-50% higher valuations than those who don’t.
At Oppenheim Advisory, we’ve guided numerous business owners through successful exits, from trade sales to Employee Ownership Trusts. Our hands-on experience means we understand exactly what buyers look for—and how to position your business to maximise its appeal and value.
Our Exit Planning Process
Phase 1: Business Assessment
Every successful exit begins with a thorough understanding of where you are today. We conduct a comprehensive review of your business including:
- Financial Analysis: Deep dive into your historical performance, revenue quality, margin trends, and working capital requirements
- Operational Review: Assessment of key dependencies, processes, systems, and scalability
- Market Position: Evaluation of your competitive position, customer concentration, and market trends
- Management Team: Analysis of key person dependencies and succession planning needs
- Legal & Compliance: Review of contracts, IP protection, and regulatory compliance
Phase 2: Value Driver Optimisation
Based on our assessment, we identify specific actions to enhance your business value. Common areas include:
- Revenue Quality: Improving recurring revenue, reducing customer concentration, and strengthening contract terms
- Profitability: Optimising costs, improving margins, and ensuring sustainable earnings
- Management Depth: Building a capable team that can operate without the owner
- Systems & Processes: Documenting and systematising key operations
- Financial Reporting: Implementing robust management information systems
Phase 3: Exit Route Selection
Not all exits are created equal. We help you evaluate the pros and cons of different exit routes:
Trade Sale: Selling to another business, often a competitor or larger player in your industry. Typically achieves the highest valuation but requires finding the right buyer.
Employee Ownership Trust (EOT): Selling to your employees via a trust structure. Offers significant tax advantages (0% CGT) and preserves company culture, though usually at a lower valuation than a trade sale.
Management Buyout (MBO): Selling to your existing management team, often with private equity backing. Good for businesses with strong management but requires careful structuring.
Private Equity: Taking investment from a PE firm, either as a majority or minority stake. Provides growth capital and expertise but involves ongoing involvement.
Phase 4: Preparation & Documentation
With your exit route chosen, we prepare your business for transaction:
- Information Memorandum: Compelling document presenting your business to potential buyers
- Virtual Data Room: Organised repository of all due diligence documentation
- Financial Model: Forward-looking projections demonstrating growth potential
- Legal Preparation: Ensuring all contracts, IP, and corporate documents are in order
Who Benefits from Exit Planning?
Exit planning is valuable for any business owner considering a sale, but it’s particularly beneficial if you:
- Plan to exit within the next 2-5 years
- Want to maximise the value you receive for your business
- Are considering different exit options (trade sale, EOT, MBO)
- Have significant assets tied up in your business
- Want to minimise capital gains tax on the sale
- Need to address key person dependencies before exit
- Want to ensure your team and customers are protected post-sale
The Oppenheim Advantage
What sets our exit planning service apart:
Hands-On Experience: We’ve been through the exit process multiple times, both as advisors and as business operators. We know what works and what doesn’t.
Buyer Perspective: Understanding what buyers look for allows us to position your business optimally and anticipate due diligence questions.
Practical Approach: We focus on actionable improvements that genuinely increase value, not theoretical exercises.
Tax Expertise: Our knowledge of exit tax planning, including EOTs, ensures you keep more of your sale proceeds.
Network Access: Our relationships with acquirers, PE firms, and corporate finance advisors can help identify the right buyer.
Case Study: Successful Trade Sale
One of our clients, a B2B marketing agency, engaged us 18 months before their planned exit. Through systematic preparation including:
- Implementing monthly management reporting
- Reducing customer concentration from 35% to 18%
- Documenting all key processes
- Building management team capabilities
- Preparing comprehensive due diligence documentation
They achieved a sale price 40% above initial expectations, with a smooth 4-month transaction process and minimal earn-out requirements.
Getting Started
Exit planning is most effective when started early, but it’s never too late to improve your position. Our process begins with a free, confidential consultation where we:
- Understand your goals and timeline
- Assess your current business situation
- Identify key value drivers and improvement opportunities
- Outline a recommended approach and timeline
- Provide a clear proposal for our services
Ready to start planning your exit? Book a free consultation or call us on 07990 835891 to discuss your situation in confidence.