How SME owners can show up for sustainability and boost business value
Discover why sustainability is critical for SME owners planning an exit strategy. Learn how ESG readiness impacts business valuation and practical steps to future-proof your business.
Sustainability: the hidden driver of business value
In the rush to embrace technology and efficiency, sustainability has slipped down the priority list in many boardrooms. Yet its influence on risk, reputation and enterprise value remains strong. For SME owners planning an exit or growth strategy, sustainability is now a critical lever for attracting buyers and maximising valuation.
Recent market trends show ESG backlash and a rise in “greenhushing”— companies saying less about sustainability to avoid scrutiny. Others continue to over-claim, risking regulatory penalties and reputational damage. Meanwhile, capital is shifting toward businesses that can demonstrate credible environmental and social practices. For owners, this means sustainability isn’t optional; it’s a differentiator that buyers will scrutinise during due diligence.
Why this matters now
Regulatory frameworks are tightening, and sophisticated buyers are digging deeper into ESG performance. If your business isn’t prepared, you risk being left behind, or worse, discounted. Conversely, businesses that integrate sustainability into their operations and narrative can command higher valuations and attract committed acquirers who move quickly with fewer conditions.
The MSA perspective: sustainability as a value driver
At Morgan Shaw Advisory, we see sustainability as more than a compliance checkbox. It’s a strategic asset that influences buyer perception and deal success. In our EBITDA+ SIX STEPS TO SUCCESS™ framework, sustainability sits alongside financial strength, market attractiveness and operational excellence because it impacts long-term resilience and enterprise value.
Think of it like preparing for the Olympics. A casual approach won’t cut it when buyers expect elite performance. From financials to culture to sustainability, every element matters if you want to maximise your sale price and attract the right buyer.
Three practical steps you can take today
Ellie Moss’s recent provocation at The Friday Lunch Club reminded us that sustainability starts with individual choices. Here are three simple, actionable steps for SME owners and leaders:
Check your super: Ensure your retirement funds are invested in sustainable options that avoid heavy fossil fuel exposure and back renewables and responsible businesses.
Check your bank: Review where your bank deploys your deposits and mortgage dollars. If it’s still financing coal, oil and gas projects, consider switching.
Clean up your energy at home: Install solar panels if possible, or switch to green power options through your provider. These actions reduce your footprint and reinforce your credibility as a sustainability advocate.
None of these steps requires a board paper or a strategy offsite. They simply demand intentionality with the levers you already control: your savings, banking relationships and household energy.
How MSA helps you integrate sustainability into your exit strategy
Through our EBITDA+ SIX STEPS TO SUCCESS™, we help SME owners audit their sustainability story, align it with growth objectives and embed it into the broader value creation plan. This ensures you’re not greenwashing or greenhushing but presenting a credible, data-backed narrative that resonates with buyers.
Actionable questions for SME owners:
Is sustainability reflected in your operational and financial metrics?
Can you demonstrate measurable ESG outcomes to buyers?
Are you prepared for regulatory scrutiny during due diligence?
Does your sustainability story align with your brand and market positioning?
Ready to future-proof your business?
Sustainability is a valuation driver. If you want to maximise your exit potential and attract the right buyer, now is the time to act. Book a consultation with Morgan Shaw Advisory to explore how our proven framework can help you integrate sustainability into your growth and exit strategy.