Webinar recording: How to get your people and financials exit ready 

We recently hosted the third in our series of webinars and events, focusing on the key traits that influence the success of agencies and the essential steps that agency owners should take to build value ahead of a potential exit – many of which are a part of  our agency exit programme.  

We are delighted to share our key takeaways from our speakers Barrie Brien, Founder and CEO of STRAT7, Nick Thompson, Head of Corporate Finance and Mel Reed, M&A Tax Partner, both of Moore Kingston Smith.  

How to get your people exit ready: 

• Agencies need strong alignment between founders and management boards regarding objectives for not only the business but personal objective, positioning, and growth strategies. 

• Employee engagement should be a priority – understanding how employees perceive the business is crucial for navigating cultural and operational challenges. 

• Ensure teams receive the proper training and knowledge to build and nurture client relationships, rather than focusing solely on service execution. 

• When acquiring a business, buyers are particularly interested in management teams with ambition and a clear market position. A strong second-tier management team is important to buyers as it ensures business continuity post-acquisition. 

• Enterprise Management Incentive (EMI) schemes can be highly tax-efficient if implemented early. Management needs to have a meaningful equity interest – c25% was deemed to be attractive to a buyer. 

• Tax-efficient structures can also enhance overall company valuation. 

• Founders should be transparent about their post-sale intentions – will they remain involved in some capacity, or do they plan to transition out? 

The key steps to ensure your financials are exit ready: 

• Maintain client diversification – over-reliance on a handful of clients can be risky through a transaction and impact on valuation. 

• Agencies must ensure their financial reporting is accurate and well-maintained – proper record-keeping is essential. 

• Poor management information can negatively impact a deal – ensure all financial data is well-organised before pursuing a sale. 

• Address any legal, tax, and compliance issues early to prevent complications. 

• Establish a ‘deal team’ to oversee the financial and legal aspects to ensure a smooth transaction process. 

Please get in contact if you would like to discuss this webinar in more detail, or if you have any corporate finance-related questions.

How we can help 

Please get in contact if you would like to discuss this webinar in more detail, or if you have any corporate finance-related questions.