Preparing your business for sale: 8 ways to maximise value before an exit

Thinking about selling your business?

Our recent webinar explored what most owners overlook and what buyers really care about when assessing a business to buy.

Selling a business is one of the most significant decisions an owner will make, yet many underestimate the amount of planning required to achieve the best possible outcome.

Our panel of experts explored the realities of preparing a business for sale, the common pitfalls owners encounter, and what buyers and investors are really looking for. The discussion brought together perspectives from business strategy, finance, risk and M&A, providing practical advice for owners considering an exit in the coming years.

Our panel included:

• Tim O’Connor, Group Chief Executive and Founder of Fabric Group
• Paul Vennard, Regional Partner at The CFO Centre
• Julie Scott, Head of M&A Advisory at Partners&
• Jonathan Miller, Chief Client Officer at Partners&

From valuation and due diligence to founder dependency and risk management, the webinar highlighted the key actions business owners should take long before they bring a business to market.

1. How far in advance should you prepare your business for sale?

Start earlier than you think.

One of the clearest messages from the discussion was that successful exits are built years in advance. Tim O’Connor advised that business owners should ideally allow up to two years to prepare for a transaction, giving them time to strengthen the areas buyers value most.

This preparation period allows owners to improve financial reporting, address risks, build a stronger leadership team and maximise value before entering negotiations.

The earlier you start, the more control you have over both the process and the outcome.

2. What do buyers look for when acquiring a business?

Buyers are investing in future potential.

Many owners focus on what the business has achieved historically, but buyers are far more interested in what it can deliver in the future.

Paul Vennard explained that buyers are looking for confidence in future revenue, profitability and growth. Strong customer relationships, predictable income streams, clear growth opportunities and secure contracts all help to build that confidence.

Ultimately, buyers are asking one question: will this business continue to succeed without the current owner?

3. Why founder dependency can reduce business value

Founder dependency remains one of the biggest factors affecting valuation.

Tim O’Connor highlighted that when customer relationships, operational knowledge and decision-making sit solely with the owner, buyers see unnecessary risk. Businesses that can demonstrate strong leadership beyond the founder are typically more attractive and achieve stronger valuations.

Owners looking to maximise value should focus on delegation, succession planning, documenting processes and developing future leaders. The aim is to show the business can thrive without the founder at the centre of every decision.

Julie Scott added that buyers also assess the strength of the wider management team and want confidence that performance can be sustained after the transaction. Where founders remain involved through an earn-out, key person protection can help safeguard business value and provide reassurance to both buyers and investors.

4. Why financial due diligence can make or break a business sale

As a CFO who has both grown and sold businesses, Paul stressed the importance of robust financial information.

Buyers expect accurate management information, reliable forecasts and a clear understanding of how the business generates profit and where future growth will come from.

Financial due diligence can be one of the most intensive stages of a transaction. If the numbers do not support the story being presented, buyer confidence can quickly diminish. Robust financial reporting not only helps a business withstand scrutiny but can also support a stronger valuation.

5. How risk and insurance can affect business valuation

Risk management can have a direct impact on valuation and deal completion.

Julie Scott highlighted that risk and insurance considerations are often left until late in the transaction process, despite their potential impact on both valuation and deal completion.

Areas commonly reviewed include:

• Health and safety
• Claims history
• Cyber security
• Employment practices
• Tax exposures
• Insurance arrangements

Her advice was clear: get your house in order early. Buyers and investors will scrutinise every aspect of a business during due diligence, and unresolved issues can quickly become sticking points in negotiations.

Julie also explained that businesses with well-documented controls, appropriate insurance cover and a proactive approach to risk management are often in a stronger position during a transaction. In many deals, specialist solutions such as warranty and indemnity (W&I) insurance can also play an important role, protecting against innocent breaches of warranties in the sale agreement and helping provide a cleaner exit for sellers.

6. How is a business valuation determined?

Valuation is about quality, not just profit.

Many owners focus solely on profit when thinking about valuation, but buyers assess much more than financial performance.

Tim explained that buyers look at both risk and future growth potential. Factors that can positively influence valuation include:

• Recurring revenue
• Long-term contracts
• Customer diversification
• Strong management teams
• Clear growth opportunities
• Low operational risk

Julie added that unresolved risks, inadequate insurance arrangements or issues uncovered during due diligence can directly affect valuation and, in some cases, derail a transaction entirely.

The webinar also highlighted the importance of identifying the gap between what an owner wants to achieve from a sale and what the business is worth today. Understanding that gap creates an opportunity to implement a plan to close it before going to market.

7. What are the tax considerations when selling a business?

Tax planning was another major theme throughout the discussion.

Tim encouraged business owners to review areas such as:

• Capital gains tax
• Business Asset Disposal Relief
• Ownership structures
• Succession planning
• Inheritance tax implications

The key message was to start planning early. The more time available before a transaction, the more options are likely to exist.

8. Why having the right advisers matters

All three panellists agreed that selling a business is a specialist process.

While most business owners will only sell a company once, buyers and investors complete transactions regularly and are often supported by experienced advisers.

Paul stressed the value of experienced financial and tax advice, while Tim highlighted the importance of strategic planning and shareholder alignment. Julie encouraged owners to engage specialist M&A advisers early, particularly when it comes to due diligence, risk management and insurance planning.

The right advisory team can help identify value drivers, uncover issues before buyers do and support a smoother transaction from start to finish.

Final thoughts

As Jonathan Miller concluded during the webinar, successful exits rarely happen by accident.

The businesses that achieve the best outcomes are typically those that invest time in planning, strengthening their leadership teams, maintaining robust financial controls and proactively managing risk.

Whether you’re considering a trade sale, private equity investment, family succession or a management buyout, the same principles apply: start early, understand your objectives and focus on creating a business that buyers will want to own.

Because ultimately, buyers are not simply purchasing your past performance — they’re investing in your future potential.