Exiting your business before April?

Simple routes, real-world tips for business owners.

Even if you don’t have a buyer…

For many founders, the question of exit starts quietly. It might be prompted by a conversation with an adviser, a sense that the business has reached its natural next stage, or a growing awareness that the end of the tax year is approaching.

What often surprises business owners is that selling to a third party is not the only way to step back or take value out of a company. In reality, there are several routes to exit, and some of the most effective do not require an external buyer at all.

The key is understanding your options early and choosing a path that fits your business, your people and your personal goals, rather than rushing towards the most obvious outcome.

First, get clear on timing and why it matters

One of the biggest sources of pressure around exits is the calendar. Companies operate on a financial year starting on 1 April, while individuals are taxed by reference to the personal tax year ending on 5 April. A binding contract date falling on one side of those dates or the other can affect rates, allowances and reliefs.

That does not mean every business should race to complete before April. It does mean founders should model outcomes on both sides of the date before locking in a timetable. Understanding the implications early gives you options and removes panic from the process.

If you do not have a buyer, you are not stuck

A common misconception is that an exit can only happen once a buyer is lined up. In practice, many founders choose routes that allow them to release value or step back without selling to a third party.

One option is equity release. This allows owners to extract some of the existing value in the business while continuing to run it. It can be a useful way to de-risk personally, particularly where the company is profitable, but the founder does not want to give up control yet.

Another increasingly popular route is an Employee Ownership Trust. Under this structure, a trust acquires a controlling stake in the company on behalf of employees. For founders, it offers a way to exit gradually, protect the culture they have built and reward the people who helped create the business. For staff, it provides long-term stability and a meaningful stake in the company’s future.

Family succession can also be an attractive option, but it requires honest conversations early on. Appetite, capability and long-term commitment matter just as much as family ties. When it works, it can preserve legacy and continuity. When it is rushed, it can create strain for both the business and the family.

There are also situations where winding up the company is the right answer. In a solvent winding up, surplus assets are returned to shareholders once creditors are paid. In more difficult circumstances, an insolvent winding up prioritises creditors. While not traditionally thought of as an exit strategy, it can be a clean and appropriate conclusion for some businesses.

If you do have a buyer, preparation makes all the difference

Where a buyer is already interested, the focus should shift to readiness rather than speed.

Deciding early whether the deal will be structured as a share sale or an asset sale sets the direction for everything that follows. It affects employee treatment, contractual consents and how disruptive the process is to day-to-day trading.

Founders often underestimate how long practical issues can take to resolve. Consents from landlords, lenders, customers or suppliers can easily slow a deal if they are discovered late. Clear communication with key customers and senior team members also plays a major role in keeping momentum and protecting value.

This is where planning pays off. Settling on a structure, preparing information properly and locking a realistic timetable with advisers turns what could be a stressful scramble into a controlled process.

Choosing the right route, not just the quickest one

Not every exit should be rushed. Sometimes waiting a short period makes sense if a contract renewal will materially increase value, if the business needs time to demonstrate stable performance, or if a founder simply is not ready to let go yet.

The strongest exits tend to be the ones where owners have taken the time to evaluate their options, model different outcomes and choose a route that fits their priorities. Whether that involves a buyer, employees, family or a gradual step back, the aim is the same: a smoother transition and a result you feel comfortable with.

For founders thinking about their next move, the most important step is often the first one. Having a clear, no-jargon conversation about what is possible can turn a vague idea into a plan and replace pressure with confidence.