Most business owners assume “exit” means one thing: sell up, cash out, and walk away.

But here’s the truth: 79 % of UK small-business owners don’t have a formal exit plan at all, even though nearly half expect to sell someday. The danger is obvious: if you wait until you’re ready to leave, you may find your only option is a rushed sale at the wrong price.

Exit planning isn’t about locking yourself into a single path. It’s about building a toolkit of options so you stay in control, protect your legacy, and maximise what you’ve built.

Why Options Matter

Flexibility is everything in business. Markets shift. Life throws curveballs. Sometimes you’ll want to step back gradually, other times you’ll need to secure capital quickly. Exploring multiple exit paths gives you choices when circumstances change.

Options also create value. Some routes, such as partnering with private equity, can actually increase your company’s worth before you fully step away. Most importantly, options give you control. Instead of being forced into a deal under pressure, you decide when and how to leave.

Partial Sale: Two Bites of the Apple

One increasingly popular route is the partial sale. You sell a majority stake to an investor but keep a minority share. That allows you to take money off the table now while still sharing in future gains.

Take the case of Boast co-founder Lloyed Lobo, who sold most of his company to Radian Capital for $23 million, while rolling about 40 % of his equity into the new structure. He diversified his wealth immediately but also secured a second payday as the company continued to grow.

The same story played out with Sarah Dusek, who sold a majority stake in Under Canvas to KSL Capital but kept 25 % and remained CEO. When she finally stepped away, the business had grown into a glamping empire worth over $100 million.

A partial sale offers what many call “two bites of the apple.” But remember, once you’re a minority shareholder, the big decisions are no longer yours to control.

Management Buyout: Passing the Torch to Your Team

Another route is the management buyout, or MBO. Here, your existing managers purchase the business they already help to run. Because they know the systems, customers, and culture, the handover can be seamless.

For the owner, this option provides continuity and often a faster, more confidential negotiation. For the managers, it’s a chance to finally reap the rewards of ownership. The challenge is funding: raising the necessary capital can be tough, and success depends heavily on the strength of your current team.

Employee Ownership Trust: A Rising Star

A more recent development is the Employee Ownership Trust, or EOT. Under this model, a trust buys at least 51 % of the company and holds it on behalf of all employees. The growth in EOTs has been extraordinary, just 11 were formed in 2017, but by 2023 that number had surged to 542.

Why the appeal? For sellers, the shares qualify for zero Capital Gains Tax. For employees, there are tax-free bonuses of up to £3,600 each year. More importantly, the structure ensures that the business continues for the benefit of the entire workforce.

Unlike an MBO, which typically rewards senior managers, the EOT is designed to include everyone. It does, however, require more complex governance and a separate board of trustees.

Family Succession: Keeping It in the Bloodline

For many, the most natural option is family succession. Nearly half of all owners consider passing the business to children or other relatives. The attraction is obvious: it keeps the legacy in the family.

But this route demands foresight. Successors need mentoring early, and financial fairness between siblings must be addressed openly. Without clear planning, family dynamics can quickly turn into family conflict.

Mergers and Partnerships: Creating Scale

Finally, there is the possibility of merging with another company or forming a strategic partnership. This path can be one of the most lucrative, since synergies - shared customers, technology, or market reach often command the highest valuation premiums.

But mergers are complex. They require deep due diligence, significant legal costs, and careful cultural alignment. When they work, they can be transformative; when they don’t, they can be messy.

Choosing Your Path

The real question isn’t which option is “best,” but which option is best for you. Do you want to step away entirely or gradually? Do you need liquidity now, or can you wait for a larger return later? Do you care most about preserving legacy with family, with employees, or with an acquirer?

Your answers will shape the path forward.

Final Thought

Exit planning isn’t about selling tomorrow. It’s about giving your future self choices. The earlier you start, the more options you’ll have, and the more likely you’ll leave on your terms—at your peak, with confidence, and without regret.

So, let me leave you with one question: which of these paths feels most aligned with your goals right now?