We are trusted acquisition advisors with an exemplary track record in the £3m-£50m value range and sometimes larger
Early stage strategic planning can be vital in any exit scenario to ensure the maximum price is realised through the most appropriate route.
In our experience, there is a positive correlation between the quality of vendors’ preparation and the quality of the exit, as measured by valuation and terms achieved by vendors. Stakeholders seeking an excellent exit benefit greatly by planning for the event and through implementing clear processes, having robust auditability and an attention grabbing story which establishes each business’s unique strategic value-driving attributes.
Commencing with an engagement to get stakeholders aligned on shared goals and objectives and more detailed workstream to identify the critical value drivers which are central to the story behind a successful exit
Having assisted stakeholders to construct and communicate the story, we use our deep technology sector experience to help management make supporting operational improvements
Depending upon timescales and overall goals, exit preparations may also include fill-in acquisitions. We can support this process by scoping out the requirement and advising through the origination process, due diligence and to completion. We also have experience to help management teams through the integration planning process to build and position the new the joined-up entity ready for exit
Other than maximising value, the key benefit of our exit planning approach is to provide greater vendor control. Getting organised for due diligence and helping to ensure that the focus stays on providing the key proof points which substantiate the critical value drivers as part of the story, help to ensure greater certainty of an excellent outcome
FAQs
Ideally, exit planning should begin 12 to 24 months before any intended sale process. In practice, many of the factors that influence value are shaped well before a buyer appears: revenue quality, customer concentration, management depth, recurring income, margins, growth trajectory, and the clarity of the strategic story. Early planning gives owners time to address issues that might otherwise reduce value, delay a transaction, or narrow the buyer universe. But if the period available is less than a year, significant improvement can still be had.
No. Exit planning is not the same as launching a sale process. It is a structured way of understanding how attractive the business would be to buyers, what might need to change before going to market, and which exit routes could be available. Some owners use the process to prepare for a sale; others use it to make better strategic decisions while continuing to grow the business.
Buyers usually look for a combination of strategic relevance, quality of earnings, growth potential, defensible market position, and operational resilience. In software, this may include recurring revenue, product differentiation, customer retention, and scalability. In IT services including MSPs, buyers may focus on contracted revenues, customer quality, technical capability, vendor relationships, service margins, and the strength of the management team. The key is not just performance, but how clearly that performance can be understood, evidenced, and positioned.
Valuation is influenced by both financial performance and buyer confidence. Exit planning can help identify value detractors before they become negotiation points. These might include over-reliance on the founder, inconsistent reporting, weak revenue visibility, unresolved legal or employment matters, customer concentration, or unclear growth plans. Addressing these areas in advance can improve both the perceived quality of the business and the competitive tension in a future process.
At a minimum, owners should have reliable financial information, a clear explanation of revenue streams, customer and contract analysis, details of products or services, management structure, growth strategy, and any important operational or legal matters. The information does not need to be in full sale-process format at the outset, but it should be accurate, consistent, and capable of supporting the equity story presented to buyers.
The right buyer is not always the most obvious competitor or the largest company in the market. A strong buyer universe may include strategic acquirers, private equity-backed platforms, international consolidators, vertical market specialists, or businesses seeking specific capability, geography, customer access, or product IP. Exit planning helps identify which buyers are likely to understand the strategic value of the business and have a credible reason to pay for it.
Approaching buyers too early can be counterproductive. If the business is not properly positioned, or if key information is incomplete, buyers may form an initial view that is difficult to reverse. A more disciplined approach is to understand buyer appetite, prepare the business properly, and engage the market only when the story, materials, timing, and target list are aligned.
Common issues include weak management below the founder, poor financial visibility, low-quality or non-recurring revenue, customer concentration, unclear ownership of intellectual property, inconsistent growth, margin pressure, unresolved shareholder matters, and unrealistic valuation expectations. Many of these can be improved with enough time, but they are much harder to fix once due diligence has started.
Yes. Many transactions begin with an unsolicited approach, but owners should be cautious about reacting without understanding the wider market. Exit planning can help assess whether the approach is credible, whether the valuation logic is appropriate, and whether there may be other buyers better placed to recognise the value of the business. Even in a bilateral situation, preparation can materially affect the outcome.
WTA works with owners of technology businesses to assess readiness, identify value drivers and risks, consider likely buyer groups, and shape the positioning of the business before any formal sale process begins. Our role is to bring practical M&A experience, sector knowledge, and buyer insight to the planning stage, so that owners can make informed decisions about timing, preparation, and route to market.