Why every business should plan its exit early

Most business owners spend years building their business, but only a few spend time planning how they will one day step away from it.

And yet, the exit is the single most important financial event in a business owner’s life. Despite this, research shows that 79% of UK SME owners have no exit strategy. 

For many, the realisation comes too late – often when value has already been lost or essential improvements can no longer be made.

Early exit planning is not just smart. It is transformative

In this blog, we explore why planning ahead matters, what buyers are really looking for, and how early preparation can make the difference between an average sale and a confident, premium exit.

1. Buyers want a business that is “ready to run” – not one that needs fixing.

When buyers look at a business, they are not just buying performance. They are buying certainty, stability, and potential.

A well-prepared business shows buyers that:

• Financials are clean and consistent.

• Operations are predictable.

• The team can run without the owner.

• Risks are managed and documented.

• Forecasts are realistic and reliable.

Businesses that tick these boxes attract more serious buyers, face fewer deal complications and often secure higher offers.

The earlier you start preparing these elements, the more confidence a buyer will have in your business.

2. Early planning increases valuation potential

A business might look healthy on the surface, but valuation is based on far more than profit.

Buyers value:

• Recurring revenue.

• Strong margins.

• Clean working capital.

• Low customer concentration.

• Documented processes.

• A clear growth story.

These things take time to build.

Owners who start early have the ability to shape and strengthen these areas long before entering the market.

We have seen businesses increase their valuation significantly in as little as six to twelve months simply by addressing these fundamentals.

3. Risk reduction leads to smoother, faster deals

One of the biggest reasons deals fall through is the discovery of issues late in the process.

Common risk areas include:

• Poor financial reporting.

• Missing contracts.

• Over reliance on the owner.

• Staff uncertainty.

• Inconsistent performance.

• Legal or compliance gaps.

When these issues are addressed early – months before a sale – the deal becomes far cleaner and far more efficient.

4. You protect value when the unexpected happens

Many owners decide to sell due to unplanned events – health, burnout, market changes or lifestyle shifts.

When exit planning has already been done, these situations become manageable, not

catastrophic.

A prepared business is always in a stronger position, even if the exit timeline suddenly moves forward.

5. Early planning gives you more choice

Planning ahead gives you control over:

• When you sell.

• Who you sell to.

• How the sale is structured.

• The role you want after the sale.

• The legacy you want to leave.

How BuiltoExit™ helps business owners prepare the right way

BuiltoExit™ is Hilton Smythe’s structured advisory and delivery service designed specifically for owners who want to plan their exit properly – and maximise their future value.

Through our three phase process – Exit Review, Value Build and Delivery & Progress – we help you:

• Understand how ready your business is.

• Identify the areas holding back value.

• Build a practical plan to strengthen your position.

• Implement the changes that will matter most to buyers.

• Stay accountable with monthly or quarterly reviews.

Whether you plan to sell in six months or several years, the earlier you prepare, the more confident your exit will be.