Every founder dreams of scaling up. Few plan for how it ends. At some point, every business hits a crossroads:
“If I stepped away… would this company keep growing without me?” That’s the true test of value — and the start of every smart exit strategy … Read More …
“Businesses don’t sell themselves — they sell because they’ve been built to scale.”
Every Scale-Up Story Ends Somewhere
Every founder starts with a dream of building something great.
Few start with a clear plan for how it ends.
Yet the reality is this: the most common exit for successful founders is selling their business whether to a strategic buyer, private equity firm, or management team.
The irony? Most founders start thinking about exit too late. By the time a buyer appears, value is already locked in for better or worse.
True exit success begins long before you meet a buyer. It begins with intentional value design.
1. Start Early — The Exit Is a Strategy, Not an Event
The best exits are engineered years in advance. They’re built into your scaling plan not bolted on at the end.
Ask yourself:
- What will make my business valuable to someone else?
- Who are the potential acquirers, and what do they value most?
- If I were buying my company, what would worry me?
Your Scaling Up plan, People, Strategy, Execution, and Cash should all align toward an eventual transfer of ownership, whether that’s an external sale, management buyout, or family succession.
Takeaway: Build your business as if you’ll own it forever, but design it so someone else can run it tomorrow.
2. Define Your Sales Objectives: Price, Legacy, or Freedom?
Before you engage buyers, decide what matters most.
Is your goal maximum price, or continuity for your people?
Do you want a clean exit, or will you stay involved during transition?
Are you looking for a strategic partner to fuel future growth?
Takeaway: Clarity of purpose shapes every negotiation.
3. Valuation – Maximizing Business Value Before the Sale
Buyers value businesses based on future profit and risk, not past effort.
Valuation is usually expressed as a multiple of EBITDA, adjusted for growth potential, risk, and strategic fit.
To lift your valuation, focus on:
- Recurring revenue streams (subscriptions, contracts, memberships)
- Customer diversification (avoid reliance on a single client or market)
- Documented systems and SOPs (reduce key-person dependency)
- Strong management team (the business runs without you)
- Clean financials (transparency builds confidence)
- Strategic differentiation (hard to copy = high value)
Takeaway: Scalability equals value. The easier it is for someone else to run your business, the higher the price they’ll pay.
4. Identify the Right Buyers
Not all buyers are equal. Each brings different motives and valuations.
Strategic Buyers — competitors or adjacent players seeking synergy.
Financial Buyers — private equity funds or investors seeking growth returns.
Internal Buyers — management teams or family members (common in mid-market firms).
Your advisor’s job is to discreetly identify and approach the right mix of buyers, often starting with a no-name teaser document to test market interest.
5. The “No-Name” Teaser and NDA
The teaser is your first impression: a one-page summary of your value proposition, market position, and key financials (revenue, EBITDA, growth) — without revealing your company’s identity.
Serious buyers sign a Non-Disclosure Agreement (NDA) before receiving your full Information Memorandum (IM).
This stage is about curiosity, not commitment, filtering for fit, not volume.
Takeaway: Discretion attracts credibility.
6. MOU and LOI – The Handshake in Writing
Once genuine interest is confirmed, you’ll move to a Memorandum of Understanding (MOU) or Letter of Intent (LOI) outlining key deal terms:
- Indicative purchase price or valuation range
- Deal structure (cash, earn-out, or shares)
- Timetable for due diligence and completion
- Conditions precedent (what must occur pre-close)
Takeaway: The LOI is the bridge between excitement and execution.
7. Due Diligence — The Trust Test
This is where buyers open the books. They’ll review your:
- Financials and tax history
- Legal contracts, leases, and liabilities
- Employee and customer agreements
- IP, compliance, and risk systems
Due diligence isn’t an audit, it’s a test of trust.
The more organized and transparent you are, the stronger your position.
8. Negotiation – Value Is in the Structure, Not Just the Price
Every deal has three currencies: price, structure, and terms.
While valuation makes headlines, the deal’s structure determines what you actually receive when, how, and under what conditions.
Takeaway: The goal isn’t to “win” the negotiation it’s to build a deal that endures.
9. The Transaction and Closing
After due diligence, lawyers finalize the Sale & Purchase Agreement (SPA) the binding contract defining rights, responsibilities, and settlement.
Final steps include:
- Reviewing completion accounts
- Transferring shares, assets, and licenses
- Releasing funds and announcing the sale
A smooth closing reflects more than a great business it reflects disciplined preparation.
10. The Founder’s Final Lesson
A successful exit isn’t just about the payout. It’s about building a business so well-designed that others want to buy it.
Your real legacy is the system, culture, and capability you leave behind.
Takeaway: Founders don’t “sell” their businesses they transfer excellence.
Ready to build an exit-ready company?
Join our next Scaling Up / Rockefeller Habits Workshop in Brisbane to learn how to design, scale, and maximize business value.
Contact tedb@strategyandexecution.com.au.
TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS
Are you looking to scale your business and execute strategy with clarity and impact?
I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.
My expertise lies in simplifying complexity, bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialize in both translating strategy into actionable, transformative steps that deliver lasting results.
Ready to build an exit-ready company?
Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.
ABOUT STRATEGY & EXECUTION
For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.
Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.
If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops
