Beyond the Build: How Tech CEOs Can Exit Smart in the UK
For many CEOs and founders, building a tech SME is a personal mission, equal parts ambition, vision, and resilience. But what happens when it’s time to move on?
Whether you’re preparing for a strategic exit, succession, or simply your next chapter, selling your business is not just a financial transaction; it’s a transition of identity, legacy, and leadership.
Here’s what you need to know.
👤 The Mindset Shift: From Builder to Seller
Selling a business, you’ve built from scratch is never just about the numbers. It’s about letting go, intentionally and intelligently. The mindset shift begins with understanding that your role evolves from operator to value maximiser.
Ask yourself:
- What story do I want this exit to tell?
- What legacy do I want to leave for my team, customers, and brand?
- Am I emotionally and strategically ready to step back?
📟 The CEO’s Checklist for a Strategic Sale
Below is a comprehensive checklist, meticulously crafted to guide your journey from intent to exit and ensure you are never alone in this process.
Know Your Number (and What’s Behind It)
Valuation isn’t just a multiplier. For tech SMEs, buyers will look at:
- Recurring revenue and customer retention
- Intellectual property or proprietary tech
- Profitability and growth trajectory
- Market position and competitive moat
Tip: Look for strategic alignment, not just chase the highest bid. Strategic alignment means finding a buyer whose goals and resources complement your business, ensuring a smoother transition and potentially greater long-term success.
Run a “Pre-Due Diligence” Audit
Before buyers do it, do it yourself. Clean house on:
- Financial records and tax compliance
- Legal contracts (customer, supplier, staff)
- IP ownership and software licensing
- GDPR and regulatory compliance
Buyers want visibility. Gaps will cost you leverage, or worse, the deal.
Strengthen the Leadership Bench (and Align Stakeholders)
If the business depends on you, it’s a risk. Buyers want to see a business that can operate and grow without the founder at the helm.
De-risk the deal by:
- Delegating operational control to your leadership team
- Empowering and upskilling senior management
- Creating incentive structures to retain key talent post-acquisition
- Checking that all key stakeholders are aligned, including co-founders, shareholders, and senior leaders, on exit goals, timing, and expectations
Misalignment can delay or derail a deal. Unified vision equals smoother negotiations and a more attractive proposition to buyers.
Craft a Compelling Exit Narrative
You’re not just selling a business but a future. Take control and build an exit story that frames your journey and market insights, highlights the upside for the acquirer, and reinforces continuity for customers and staff. You’re presenting a vision of the future they can grow into. Build an exit story that:
- Frames your journey and market insights
- Highlights the upside for the acquirer
- Reinforces continuity for customers and staff
Pick the Right Advisors
The right legal, financial, and M&A advisors are not a luxury but essential to success. Work with specialists who understand tech and IP-led businesses, and who know the nuances of the UK M&A landscape. The right team will:
- Protect your interests throughout due diligence and negotiations
- Anticipate deal pitfalls before they arise
- Help you structure the transaction for maximum value and minimal risk
- Give you the confidence to move forward with clarity and control
Tip: Prioritise experience over generalist advice — a deal-savvy advisor who understands your world can be the difference between a good outcome and a great one.
Understand the Tax Landscape
Work with your accountant to structure the deal smartly:
- Explore Business Asset Disposal Relief (up to £1m at 10% CGT)
- Consider share sales vs asset sales
- Plan for post-sale wealth and income
Think Beyond the Transaction
What’s next for you? A new startup? Investment? Mentoring? Rest?
Knowing your “next” gives you clarity in deal terms, including:
- Earn-outs and transitional roles
- Non-compete periods
- Equity rollover options
⛔️ Red Flags for Founders to Avoid
- ❌ Overestimating the business’s value based on emotion, not metrics
- ❌ Leaving succession planning too late
- ❌ Taking the first offer without exploring the market
- ❌ Failing to prepare for post-deal life (financially and mentally)
✨ Final Word: It’s Not Just a Sale, It’s a Strategy
Selling your tech SME isn’t the end. It’s a pivot. With preparation, perspective, and the right partners, you can exit on your terms, financially secure, emotionally at peace, and professionally proud.
Are you thinking of exiting in the next 1–3 years? Start preparing now. The best exits don’t happen by accident; they’re engineered.
🔍 At Moksha Advisory, we specialise in guiding tech founders and CEOs through strategic exits. Book a free discovery call with our team to explore your options or sense-check your readiness.
