Exit Strategy

A private equity value creation approach in which a fund acquires a platform company and subsequently makes multiple add-on acquisitions to accelerate growth, expand market share, and create a business of greater scale and value than the sum of its parts. The strategy generates returns through operational improvement of the platform, multiple arbitrage (acquiring at lower multiples than the eventual exit multiple), and synergy realisation from integration.

The plan a company uses to launch a product or enter a new market, encompassing target customer definition, value proposition, pricing, distribution channels, and sales approach. An effective GTM strategy converts product-market fit into scalable revenue.

A private equity or corporate strategy that consolidates a fragmented industry by acquiring multiple smaller companies and combining them into a single larger entity to achieve economies of scale, operational synergies, and valuation multiple expansion. Rollup strategies are most effective in industries characterised by many small operators, limited organic growth, and significant benefits from consolidation (such as purchasing power, shared back-office functions, or cross-selling).

A marketplace where existing shareholders in private companies — typically employees, early investors, or founders — can sell their ownership stakes to new buyers before an IPO or trade sale. Secondary markets for private shares have grown significantly, with platforms such as Forge Global and Nasdaq Private Market facilitating transactions that provide liquidity and price discovery for otherwise illiquid private company equity.

The duration for which an investor retains an investment before exit, typically measured from the date of initial acquisition to the date of sale or IPO. In private equity and venture capital, holding periods typically range from three to seven years and influence the internal rate of return calculation.

The process of offering shares of a private company to the public for the first time through a stock exchange listing. An IPO is a major exit route for venture capital and private equity investors, and requires extensive preparation including financial audits, regulatory compliance, and valuation.

Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief, is a UK capital gains tax relief that reduces the rate of CGT on qualifying gains when an individual sells all or part of a trading business. It applies a reduced CGT rate on gains up to a lifetime limit, provided conditions on ownership period, shareholding and officer or employee status are met in the period before disposal.

The sale of a company to a strategic buyer, typically another company in the same or adjacent industry. Trade sales are the most common exit route for venture-backed and private equity-backed businesses and often command premium valuations due to strategic synergies.

How to Sell a Business: The UK Owner's Guide

The owner's hub — the 24-month plan, what buyers pay for, and the evidence that defends the multiple.

Business Exit Strategies Compared: Trade Sale, MBO, EOT or IPO

Eight UK exit routes side by side on price, speed, control and tax, including IPO vs trade sale and the dual track exit.

How do I sell my business?

Prepare the business and its evidence base, agree a valuation view, appoint an adviser, market to a curated buyer list under NDA, negotiate heads of terms, then complete after due diligence.

What is Business Asset Disposal Relief?

Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief, is a UK capital gains tax relief that reduces the CGT rate on qualifying gains when you sell a trading business, up to a lifetime limit, subject to conditions.

How long does it take to sell a business?

A well-run sale process usually takes six to twelve months from going to market to completion, but the preparation that determines your price should begin twelve to twenty-four months earlier.