Business Exit Strategy Guide | Romford Accountants

A guide to entrepreneurs exiting their business — by Romford Accountants

 At Romford Accountants, we often advise our clients to “start with the end in mind” — that is, to develop a clear exit strategy early, so that the value you’ve built over many years is realised effectively, tax-efficiently and with minimal disruption.

Exiting a business is a major life decision, and for many owners the journey begins long before the actual sale or transfer

1. Why Romford accountants advocate a personal exit strategy

Every business exit should begin with a personal exit strategy — thinking through what you, as the owner, want from the outcome. As Romford accountants we work with clients to clarify:

  • Who, if anyone, is intended to take over (family member, partner, staff, external buyer)

  • The timing you favour

  • Whether you wish to be involved post-exit, and in what capacity

  • Your desired income or capital position going forward

By addressing those questions early, you’ll guide decisions about ownership structure, tax planning, timing and business operations.

2. Maximising business value with guidance from Romford accountants

A buyer will look at your historical profits, trends, forecasts, competitive position, growth potential, customer concentration, staff strength and operational resilience.

As Romford Accountants, we emphasise:

  • Keeping clean and up-to-date management accounts

  • Preparing 12–24 month forecasts

  • Reducing dependency on individual customers

  • Improving operational margins

  • Deleveraging and optimising working capital

This helps push your valuation higher and positions your business as an attractive acquisition.

3. Profitability planning ahead of the sale

The years leading up to your exit are critical. You need more than just stability — you need improvements. We, as Romford Accountants, counsel clients to:

  • Invest in recurring revenue streams

  • Streamline costs and eliminate inefficiencies

  • Strengthen key staff to make the business less dependent on you

  • Improve margins and forecasting accuracy

  • Manage capital expenditure and avoid unnecessary risk

This phase is about making your business not just saleable, but desirable.

  • 4. When is the right time to exit?

    Timing matters. From both a personal and a market perspective, several factors should guide your decision:

    Personal timing

    • Your desired retirement timeline

    • Your health or lifestyle changes

    • The availability of successors or worthy buyers

    • Your post-exit income needs

    Market timing

    • Economic cycles and buyer activity

    • Industry trends and technological disruption

    • Interest rates, capital availability

    • Market appetite for acquisitions

    As Romford accountants, we help clients assess both personal and external signals to hit the sweet spot for exit timing.

    5. Capital Gains Tax, reliefs & recent rule changes

    Taxes often make or break the net outcome of any exit. As of the latest rules (2025), some important points to note:

    Updated CGT and business asset disposal relief

    What used to be called “Entrepreneurs’ Relief” is now Business Asset Disposal Relief (BADR). The lifetime limit has changed and conditions have tightened. You must ensure you satisfy qualifying criteria (e.g. owning the business for a minimum period, being an officer or employee, disposing of qualifying shares or assets).

    Holdover and rollover relief

    These reliefs remain useful if you’re gifting business assets or reinvesting in replacement assets; however, claims and timing rules are stricter.

    Non-residence planning

    Be careful: moving abroad solely to avoid CGT is under increased HMRC scrutiny. The rules on split years, temporary non-residence, and anti-avoidance are more aggressive.

    Changes to pensions and inheritance tax

    In the changing tax landscape, pension contributions and IHT planning can interact with your exit strategy. We can advise how to structure the disposal, the timing, and whether to gift now or later.

    6. How Romford Accountants would structure the deal: sale, share purchase or earn-out

    Once you’re ready to exit, the structure of the deal matters. Consider:

    • Selling shares vs selling assets

    • Deferred payments, earn-outs or vendor loan notes

    • Tax implications in each structure

    • How much post-sale involvement you want (and how to contract that)

    • Ensuring smooth contractual, legal and employment transitions

    With the right structure, you can protect value, share upside, and manage risk.

    7. Due diligence, warranties and disclosure

    A buyer will demand due diligence, warranties, indemnities and disclosures. As Romford accountants we help clients prepare:

    • Clean, audited financial statements

    • A disclosure letter addressing known issues

    • Tax histories and compliance

    • Contracts with customers, suppliers, employees

    • IP, licensing, litigation or regulatory risks

    Being prepared reduces friction, speeds up the deal, and reassures buyers.

    8. Transition and post-exit support

    A good exit plan anticipates the transition. You may stay on for a period or act as adviser, or step away entirely. We as Romford accountants recommend building a clear handover plan, ensuring key people steps up, and structuring any ongoing advisory agreement.

​

9. How Trueman Brown (Romford Accountants) can help you

If you’re considering exiting your business, Trueman Brown, your trusted Romford accountants, can help you every step of the way:

  • We’ll review and refine your exit strategy

  • Undertake valuations, forecasts and business readiness reviews

  • Advise on tax reliefs and compliance

  • Structure the deal, assist with due diligence and warranties

  • Support transition and post-exit planning

For expert help from Romford accountants, contact us at mark@truemanbrown.co.uk or call 01708 397262. We would be pleased to discuss your situation and help you plan a smooth, tax-efficient exit.

Romford Accountants FAQ On Exit Strategies

Q: What is Business Asset Disposal Relief (BADR) and how does it differ from the old Entrepreneurs’ Relief?
A: BADR is the updated version of Entrepreneurs’ Relief. It provides a reduced CGT rate (10 %) on qualifying disposals up to a lifetime limit (which has been revised). To qualify, you must meet conditions relating to ownership, trading period and the nature of the assets.

Q: Can I avoid CGT entirely by moving overseas before selling?
A: This is now much harder. HMRC’s rules on non-residence and temporary departures are stricter, and they may challenge attempts to avoid CGT. You must carefully evaluate tax residence, timing, and anti-avoidance rules.

Q: Should I sell shares or assets?
A: The optimal structure depends on your business, tax position, liabilities and buyer preferences. Selling shares often passes liabilities too, but can allow use of reliefs. Selling assets can give more control over what is transferred.

Q: What is an earn-out, and is it risky?
A: An earn-out ties part of the deal value to future performance. It can capture upside for both buyer and seller but introduces risk (if targets are missed) and complexity (mechanisms, disputes).

Q: How long in advance should I plan my exit?
A: Ideally several years. Planning 3–5 years ahead gives you time to improve your business, structure tax-efficiently, groom successors and maximise value.

Q: Why use Romford accountants like Trueman Brown rather than a generic adviser?
A: Local accountants with deep knowledge of your area and context offer tailored, hands-on support. They understand local market dynamics, tax regimes, and will be accessible through the transition.

If you have more specific questions or would like to start planning your exit, get in touch with us at mark@truemanbrown.co.uk or 01708 397262.

Contact Us