Is your business truly exit-ready?

Many business owners will sell only once. And while it’s common to consider a sale in the future—perhaps in three, five, or even ten years—few are genuinely prepared when the time comes.

Most exits are reactive. A buyer expresses interest, circumstances shift, or an unexpected event forces the issue. The result? A scramble to present the business in its best light—often too late to shape the outcome.

At Barnsgate Solutions, we advocate for a different approach: long-term preparation, quiet planning, and professional execution. The businesses that command stronger valuations and favourable terms tend to be the ones that are always ready—regardless of whether a sale is imminent.

Below is a short diagnostic to help assess how prepared your business really is.

1. Do you know what your business is worth?

Many owners have only a rough estimate—often based on hearsay or broad assumptions. But real valuation is shaped by factors such as profit quality, market positioning, customer mix, growth trajectory, and sector dynamics.

If you're within 24 months of a potential sale, consider a structured valuation review grounded in current market data.

2. Are your financials clean and credible?

Buyers examine more than just your top line. They assess cost structure, recurring income, margin stability, and any irregularities.

• Are your management accounts up to date?
• Are personal or one-off costs excluded?
• Can owner remuneration be clearly separated from business profit?

If the financial picture is unclear, it can erode value—or derail a deal entirely.

3. Is the business too reliant on you?

If you’re central to sales, delivery, or key relationships, that risk will be priced in.

An exit-ready business has delegated decision-making, embedded processes, and a capable management team. The goal is for the business to continue running effectively without the owner at the helm.

4. Are key contracts secure—and transferable?

Buyers will scrutinise contracts. Verbal agreements or handshake deals won’t provide the reassurance they need.

• Are major contracts formalised?
• Are change-of-control clauses in place?
• Can agreements be transferred post-sale?

Tidy documentation helps preserve value and reduce friction during due diligence.

5. Is your profitability both real and sustainable?

Temporary gains or exceptional items (e.g. COVID relief, large one-off projects) can distort the true picture.

What buyers want is predictable profit—ideally, two to three years of stable, growing EBITDA. Heavy reliance on a single customer is also a risk factor worth addressing early.

6. Is there a credible growth story?

Buyers are looking not just at what is, but what could be. That includes:

• Geographic expansion
• New markets or services
• Better use of tech, data, or brand equity

You don’t need to act on every growth idea—but you do need to show that there’s potential, with a clear pathway to capture it.

7. Do you understand common deal structures?

Most SME sales are not all-cash. Earn-outs, deferred payments, and phased transitions are common.

Understanding what’s typical in your sector helps protect your negotiating position—and avoid surprises later. The earlier you clarify your red lines, the better.

8. Are you emotionally prepared?

Selling is rarely just a financial decision. It can be the end of a life’s work. Some owners feel relief. Others feel regret.

• Have you thought about what comes next?
• Are your family and advisers aligned?
• Will you stay involved for a time—or step away entirely?

Emotional readiness is part of the equation.

Start early. Move quietly. Be in control.

Preparing for a potential sale isn’t about urgency—it’s about optionality. A well-prepared business gives you choices: to sell, to hold, or to pivot. And it allows you to act from a position of strength, not necessity.

Barnsgate Solutions works discreetly with business owners to ensure they’re always one step ahead—often months or years before a transaction takes place.

What to do next

If you’re beginning to think about the future, we offer a free, no-obligation Exit Readiness Review to help clarify your position and options.

Get in touch with the Barnsgate Solutions team to arrange a conversation in confidence.