All insights
Exit Readiness 1 min read

What is the most common exit strategy?

The most common exit strategy for UK agencies and small businesses is a trade sale. Here is why it wins, and the main alternatives.

Featured image for What is the most common exit strategy?

The most common exit strategy for UK agencies and small businesses is a trade sale: you sell the company to another business, usually a larger agency, a competitor, or a holding group that wants your clients, team, and recurring revenue.

It is the most common route because it tends to pay the most. Trade buyers price on a multiple of adjusted EBITDA, often 3x to 6x for agencies, and there can be more than one bidder pushing the number up. Most deals include an earnout, so part of the price is paid over 12 to 24 months after completion. A management buyout or an Employee Ownership Trust are the next most common alternatives, usually at a lower price but with more certainty. See the types of business exit strategy explained.

One practical insight, every Tuesday.

Join the founders building something worth running, and one day worth selling.

Find out what your agency is worth.

15 questions on revenue, profit, operations, and risk. A personalised valuation range and a PDF report inside 24 hours.