Company Interview / Hope isn’t a strategy: the SME exit wake-up call

Key Points:

Impact of global instability on SME valuations and deal timing Preparation gaps and misaligned value expectations from owners Focus on future profit, cash flow predictability and risk reduction Five core exit pillars and the Value 360 framework for investors

Simon Bedard from Exit Advisory Group sets out a cautious but opportunity-focused view on selling small and medium-sized businesses amid global instability. Bedard states that higher costs, supply chain issues and softer confidence are weighing on valuations, making timing highly dependent on the type of business and the profile of potential buyers. Owners, in Bedard’s view, should continually assess macro conditions alongside the strength and risk profile of their own operations.

Bedard argues the biggest mistake owners make is poor preparation and overestimating value. He maintains acquirers pay for future profit and cash flow, not past achievements, and apply a risk lens to how predictable that future looks. Reducing concentration risks, strengthening systems and viewing the business through an acquirer’s eyes are presented as key to achieving a premium outcome. Emotion is seen as another major hurdle, with Bedard urging owners to treat the business as an asset that will eventually need to “leave home”.

According to Bedard, an “expert” exit starts with clarity on five elements: money (valuation needs), timing, legacy, terms/structure, and the owner’s future role post-transaction. He highlights his Value 360 framework, focusing on financial performance, growth systems, fulfilment, people and leadership, and operating model as the core areas investors examine.