4 Reasons Exit Planning Should Start Sooner Than You Think

If you’re building a business, you’ve probably spent time thinking about growth: how to hire the right people, win customers, and scale what works.

But have you thought about your exit?

For many founders and operators, exit planning sounds like something to worry about “later.” The reality? The most successful exits often start with decisions made on Day One. Whether you plan to sell to a strategic buyer, private equity firm, or pass the business on internally—early planning can dramatically improve the outcome.

Here’s why exit readiness shouldn’t be left until the last minute—and what you can do to stay one step ahead.

1. A Strong Exit Starts with a Clear Plan

When investors or buyers look at a business, they want to see more than just growth—they want to understand how that growth happened, and whether it’s repeatable.

According to PwC’s report “Creating Value Beyond the Deal,” organisations that approach deals with a clear strategic vision and align deal activity to long-term objectives are more likely to create value. The report emphasises the importance of a comprehensive value creation plan that serves as a blueprint rather than just a checklist.

By building a plan during the first 100 days post-investment—or even earlier—you set clear goals for how you’ll scale, where the value lies, and how to measure success over time.

2. Exit Preparation Is Risk Management

Selling a business involves intense due diligence. Buyers will assess everything from customer retention and margin trends to operational risk and compliance issues. The earlier you identify and address those risks, the stronger your position will be.

Bain & Company’s midyear 2022 report highlights that private equity firms are increasingly focusing on value creation levers such as digital transformation and operational improvements to drive growth and mitigate risks.

Think of it as giving buyers fewer reasons to hesitate—and more evidence to move forward confidently.

 Reasons Exit Planning Should Start Sooner Than You Think

3. Momentum Matters

The best exits don’t come from a last-minute “tidy-up.” They come from consistency—through tracking performance, hitting milestones, and aligning your team around the exit vision.

Harvard Business Review discusses how private equity firms are innovating in deal-making by focusing on long-term value creation and operational improvements, which are critical for building momentum and demonstrating consistent growth to potential buyers.

When your business shows steady, strategic growth—not just a good quarter—you’re far more likely to command a premium valuation.

4. A Buyer’s Perspective Helps You Build a Better Business

Exit planning isn’t just about selling—it’s about building a business that someone else wants to buy.

McKinsey & Company’s insights on navigating uncertainty emphasise the importance of understanding what buyers value and aligning your business strategy accordingly. This approach ensures that your business is attractive to potential buyers and can command a higher valuation.

This doesn’t just apply at the point of sale. When leaders embed a buyer’s mindset into day-to-day operations—whether it’s implementing scalable processes, demonstrating revenue predictability, or investing in team development—they’re also making better strategic choices. It means creating a culture of accountability and future-proofing the business, which not only attracts buyers but also improves overall performance and resilience along the way.

By looking at your business through a buyer’s lens early on, you can shape a clearer, more valuable story—and use that lens to guide better decisions long before the deal table.

How We Help

At The Small Consultancy, we support PE-backed, VC-backed and founder-led businesses to build clear, sustainable value from the inside out. That includes:

  • Building the right team and operating structure for scale
  • Hiring and people strategy aligned to your growth plan
  • Helping tell your story in a way that makes sense to buyers

Whether you’re thinking about an exit in two years or ten, the work starts now.

Find out more here or let’s talk

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