How A Business Plan Now Can Maximise Value On Exit

One of the first requests from any adviser approached in connection with an exit is to see a copy of the company’s business plan, but it is surprising how many SME’s do not have a prepared plan that is expressly formulated for exit.

For a board of directors, the discipline of building a sale‑ready plan is not merely good corporate governance, it is a strategic tool that can increase valuation, reduce execution risk, and improve options both in terms of timing of exit and the class of buyer interested.

Enhancing value

A sale‑ready business plan helps the board communicate a credible equity narrative converting operating performance into valuation. When calculating an offer, buyers are primarily interested in a future return on investment and having a forward-looking plan that details growth projections, expansion opportunities and the tools and investment needed to deliver these is most likely to command a premium when it comes to pricing.