Exit Planning for Oxfordshire SMEs – How to Maximise Value Before You Sell
For many business owners, your company is not just your livelihood, it’s the result of years of hard work and dedication. At some point, whether in the near future or further down the line, you’ll think about exiting your business. That could mean selling, passing it on to family, or winding down in a way that secures your financial future.
At Modus Accountants, we support Oxfordshire business owners through the entire exit journey. Here are our top tips to help you prepare and maximise the value of your business.
1. Start Planning Early
Exit planning works best when it starts years in advance. This allows you to:
Improve systems and processes.
Build a strong management team.
Tidy up financial records and tax planning.
Tip: Buyers and investors value businesses with consistent, reliable accounts.
2. Understand Your Business Value
Business valuation methods include:
Multiple of profits (EBITDA) – common in SME sales.
Asset-based valuations – for companies with significant property or equipment.
Discounted cashflow – projecting future profits.
Insight: The higher your profitability and recurring revenue, the higher your valuation.
3. Reduce Risks for Buyers
Potential buyers will look for risks that may reduce value. Common red flags include:
Over-reliance on one client or supplier.
Poor contracts or compliance issues.
Outdated technology or processes.
Tip: Documenting systems and diversifying income makes your business more attractive.
4. Tax Efficiency Matters
Planning ahead can help minimise tax when selling:
Business Asset Disposal Relief (BADR): May reduce Capital Gains Tax to 10%.
Pension contributions: Tax-efficient ways to extract value pre-sale.
Inheritance planning: Passing value to the next generation.
5. Get the Right Advisors
Selling or exiting a business is one of the biggest financial decisions you’ll ever make. Surround yourself with:
Accountants experienced in exit planning and tax strategy.
Legal advisors for contracts and compliance.
Business brokers (if selling externally).
Next Steps
If you’re starting to think about your exit, whether in 2 years or 10 years, the earlier you prepare, the better the outcome will be.
At Modus Accountants, we help Oxfordshire SMEs structure their businesses for the future, protect value, and achieve the smoothest possible exit.
📞 Call us today on 01993 225030 or 📧 email hello@modus-accountants.co.uk to book your free exit planning consultation.