Here's What No One Tells You About Preparing for Exit
- donalosullivan
- Jun 16
- 4 min read
Most entrepreneurs only exit a business once in their lifetime and yet, very few are ever taught how to do it. The statistics are sobering: nearly 80% of business owners struggle to sell their companies when attempting to exit the market, while an estimated 10,000 to 11,000 Baby Boomers retire every day, and many of them own businesses.
At Vico Advisory, we've spoken to hundreds of founders and CEOs across Ireland and Europe. Many have built exceptional businesses, yet when it comes to succession planning or a company sale, they're flying blind. They're experts in their own fields, but not in the M&A process and that's completely normal.
But here's the truth no one tells you until it's too late:
1. You Need to Start Preparing 1–2 Years in Advance
An exit isn't a one-day event. It's a process. Average exit hold times reached an all-time high of 8.5 years in 2024 more than double the 4.1 years seen in 2007, demonstrating that successful exits require long-term strategic planning.
To get the best valuation and attract the right buyer, your business must be ready financially, operationally, and culturally. That takes time. Buyers don't just invest in what the business is today, they pay for the future growth potential.
This is especially true in the lower mid-market, where deal activity is growing. In Europe:
Around 4,800 lower mid-market deals (enterprise value €5M–€100M) closed in 2022.
That rose to 5,500 deals in 2023, a 15% year-over-year increase.
Early 2024 data suggests another 10%+ rise is underway.
Buyers are active. But they’re selective. If you're not exit-ready, you're not in the game.
2. The Business Needs to Run Without You
If you're still the central cog in the machine, your business may be less attractive to acquirers. A key part of exit readiness is ensuring you're no longer mission critical. This means building a strong leadership team, documented processes, and clarity on future strategy.
Research shows that businesses with strong management teams and systematic processes command premium valuations. The most successful exits happen when founders have already transitioned from operators to strategic leaders.
3. Not All Buyers Are the Same
There's a difference between strategic buyers, private equity firms, and family offices. Each has different goals, timelines, and expectations. Knowing who to target and how to position yourself can add significant value to the outcome.
With nearly 40,000 M&A transactions completed worldwide in 2023, investors need to focus on specific areas for their investment thesis to be meaningful and successful. Therefore, understanding buyer motivations and market dynamics is crucial for positioning your business effectively.
For example, in the B2B SaaS technology sector, EV/EBITDA multiples in 2024 ranged from approximately 9x to 13x, depending on scale and maturity. Smaller firms with €1M–€3M EBITDA typically fetched 9x–11x, while those above €5M EBITDA reached 12.5x+.
Understanding who you're selling to and how to position your value is critical to achieving the best possible outcome.
4. Financial Clean-Up Is Crucial
Messy books, one-off expenses, or unclear revenue breakdowns can lower your valuation or kill the deal altogether. If you don't have clean, audited* numbers and a compelling financial story, buyers will walk away.
Few SME business leaders perceive timing the sale (6%), market conditions (5%), transition planning (4%), and due diligence (4%) as challenges, yet these are precisely the areas where deals often fall apart. Professional financial preparation is non-negotiable in today's market.
* Unless your business is audit exempt
5. It's Emotional, And That's Normal
Exiting a business is not just a financial transaction. It's letting go of something you've built, often over decades. It’s your baby. 38% considered family legacy the biggest consideration when deciding to exit, highlighting the deeply personal nature of business transitions.
Founders are often surprised by how emotional the process can be. Being mentally and emotionally prepared is just as important as the numbers. Many successful exits include transition periods where founders remain involved, helping to bridge the emotional and practical aspects of the handover.
The Market Reality
The current M&A landscape presents both opportunities and challenges. While deal activity is recovering, preparation has never been more critical. Research suggests that people aged 55-plus make up 21% of the population, but own a disproportionate 51% of businesses in the U.S. Similar trends are present in:
Ireland, where adults 55+ own around 50% of SMEs, despite comprising just 24% of the population
The UK, where 55+ individuals own over 55% of private companies
This demographic wave means more businesses will hit the market soon driving greater competition among sellers.
Being better prepared than your peers is your advantage.
Final Thought: You Don't Need to Do It Alone
A successful exit is part strategy, part timing, and part execution. Having the right advisors by your side can dramatically improve your outcome and significantly increase your chances of being in the successful 20% rather than the 80% who struggle to complete their exit.
At Vico Advisory, we work exclusively with SME leaders in the €5M–€50M revenue range who are looking to raise capital, grow through acquisition, or plan for a successful exit. With over 60 M&A transactions completed globally, we understand the unique challenges facing Irish, UK and US businesses and know how to guide you through every step of the journey.
💡 Ready to Start Thinking About Your Exit?
Book a one-on-one strategy session with our CEO, Dónal O'Sullivan, and gain tailored insights specific to your business. We'll help you build a roadmap whether you're 6 months or 3 years away from a sale.
Sources:
PwC Global M&A Industry Trends: 2025 Outlook
McKinsey & Company M&A Annual Report 2025
Exit Strategies Group Market Analysis 2024
PitchBook European M&A Mid-Market Report 2024
UK Companies House / CSO Ireland SME Ownership Demographics
Upmetrics Business Plan Statistics 2025
