Exit strategy for founders: how to maximise business value in 2025
The Australian M&A market is showing renewed strength heading into 2025. Strategic buyers and private equity firms are actively seeking businesses with scale, clarity and growth potential. For founders, this is a great time to prepare. A well-planned exit can unlock significant value, but only if the business is positioned correctly.
At Morgan Shaw Advisory, we work with owners to embed exit planning into their broader business strategy. Through our EBITDA+ SIX STEPS TO SUCCESS™ framework, we help businesses become “Game Ready” as in optimised, resilient and positioned for premium valuation.
Why this matters now
Recent market activity shows a clear uptick in mid-market transactions across sectors including infrastructure, healthcare, and consumer services. Buyers are returning with capital to deploy, but they are more selective. Businesses that demonstrate operational independence, recurring revenue, and strategic fit are commanding stronger multiples.
Founders who delay preparation risk leaving value on the table. The market rewards clarity, not improvisation. Addressing key risks well such as customer concentration, owner dependency and financial transparency before entering negotiations is essential.
Common gaps in exit readiness
Many owners assume their business is worth what they need it to be, however evaluation is a negotiation. The gap between what an owner wants and what a buyer is willing to pay can be significant. Bridging that gap requires a deliberate plan to enhance business value before going to market.
Typical oversights include:
Relying on unaudited or unclear financials
Failing to document systems and processes
Overestimating buyer interest without mapping strategic fit
Underestimating the time required to prepare (often 9–12 months)
What happens after the sale agreement
Signing the sale and purchase agreement is only one milestone. Many deals include performance-based payments or earnouts, which tie part of the purchase price to future business performance. Sellers must understand the metrics that drive those payments and negotiate terms that protect their upside.
Key considerations include:
How revenue from new clients is treated in earnout calculations
What happens if a key client exits post-sale
How performance targets are tracked and reported
How disputes or ambiguities are resolved
Clear documentation and proactive planning during due diligence are essential to protect the seller’s interests and maximise post-sale outcomes.
MSA’s approach: bridging the value gap
At Morgan Shaw Advisory, we help founders prepare for exit through our EBITDA+ SIX STEPS TO SUCCESS™ program. This includes:
Strategic planning tailored to buyer expectations
Operational improvements to reduce risk and increase scalability
Financial clean-up and audit readiness
Buyer mapping and positioning
Due diligence preparation and data room setup
Post-sale planning and earnout strategy
Our goal is to ensure your business is not just ready for sale, but ready to command a premium.
Actionable steps for founders
Here’s how to start preparing today:
Run a pre-exit health check: Assess customer concentration, margin stability, and owner dependency.
Build a buyer map: Identify strategic acquirers or PE firms that align with your business.
Frame your exit story: Position your business as a growth opportunity, not just a transaction.
Clean up your financials: Ensure they are audit-ready and can withstand scrutiny.
Decide your deal structure: Full sale, partial rollover, or investor partnership; each has different implications.
Next steps
If you’re considering an exit in the next 12–24 months, now is the time to act. Preparation drives value. At Morgan Shaw Advisory, we help founders navigate every stage of the exit journey, from strategic planning to post-sale execution.
🔗 Explore our exit readiness resources
📞 https://www.morganshawadvisory.com/contact
📘 Read: Unlocking maximum business value