Selling in 2030? How to increase business value in 5 years

Many owners don’t think seriously about selling their business early enough. They may be looking for a new challenge, be keen to retire, or have some other reason for business exit. The problem is, though, that some value-draining issues don’t take weeks to fix – they can take years. So, if you are keen to learn how to increase business value, it’s best to treat your exit as a medium-term project, not a last-minute scramble.

The 5-year rule – start building value early

Buyers don’t just pay for your story. They pay for evidence.

During a typical sale process, buyers and their advisers will scrutinise your business’s performance over time as part of their financial due diligence. As a result, it is very common for them to focus heavily on the last three years of your operations and financial results.

So, if you are aiming to sell in 2030, a buyer will be looking closely at the “evidence years” of 2027, 2028 and 2029. That means you need to know how to increase your business’s value and start work now.

Practical tip: You cannot measure progress without a baseline. The first step is a professional business valuation to see where you stand today.

Clean up owner-related and non-recurring costs

One of the quickest ways to reduce buyer confidence is to present accounts that need a long list of explanations.

Many owner-managed businesses have perfectly legitimate costs that are owner-related or unlikely to continue after a sale. For example, these might include:

• Remuneration structures that are tailored to the owner or family members, rather than market-rate roles
• Director benefits provided as part of a package (such as company cars or memberships)
• One-off or non-recurring items that will not form part of normal trading going forward

When a buyer values your business, they usually start with reported earnings and then adjust for non-recurring, discretionary, or non-ongoing business expenses. These are often called EBITDA add-backs or normalising adjustments. (EBITDA stands for “Earnings Before Interest, Taxes, Depreciation and Amortisation).

THP view: add-backs can be valid. But the cleaner and clearer your accounts, the less explaining you have to do and the lower the perceived risk. Always try to reduce the reasons buyer might have to doubt the numbers.

What to do in the next 12–24 months:

• Separate personal and business spend ruthlessly (and keep evidence where something genuinely is business-related).
• Document one-offs properly (what it was, why it will not repeat, and the invoice).
• Move towards market-rate remuneration for family members, or tighten role descriptions so the commercial reality is clear.

Reduce key person risk

If a key person in your business was suddenly unavailable for three months, would revenue slow down or stop?

That is the question sitting behind many buyer concerns. If the business relies heavily on one or two individuals for client relationships, pricing decisions, operational knowledge or delivery, the buyer’s perceived risk goes up and the valuation multiple often drops.

To lower this risk:

• Document key processes. Sales handovers, quoting, delivery, customer onboarding, complaint handling.
• Build depth in the team. Cross-train colleagues, introduce deputies for critical roles, and reduce single points of failure.
• Strengthen management and accountability. Even one credible layer of management can change a buyer’s perception of continuity.
• Keep knowledge in the business. Use cloud accounting and a CRM so customer history, pricing logic and workflow live in systems, not in someone’s head.

The legal health check – common due diligence killers

Deals often slow down (or are abandoned) for reasons unrelated to profit. This can be due to legal and operational gaps that create delays, uncertainty, renegotiations, and sometimes late price reductions.

Due diligence commonly includes a thorough look at financial records, payroll, tax and wider company documentation. Here are three high-impact checks to do early:

1. Make sure employment paperwork is complete. Employers must provide a written statement of employment particulars, and timing matters (this should be provided on or before the first day of work). Missing paperwork is an avoidable red flag in due diligence.
2. Ensure IP is actually owned by the company. Logos, websites, software, content and code should be properly assigned to the company, not informally “owned” by a developer, founder or contractor. If it is not clearly owned, it becomes a negotiation point at exactly the wrong time.
3. Check your premises position is sale-proof. If you operate from leased premises, buyers will want confidence the business can keep trading from the same site. Make sure lease terms, your renewal position, and any landlord consents are understood well before you go to market.

Tip: understanding financial due diligence is a key part of learning how to increase your business value.

Tax planning for the exit

Even a great sale price can be disappointing if you only get round to tax planning at the end.

For many owner-managers, Business Asset Disposal Relief (BADR) (previously Entrepreneurs’ Relief) can reduce the Capital Gains Tax rate on qualifying disposals.

Key points to be aware of:

• The rate. This is 14% on qualifying gains for disposals from 6th April 2025.
• From 6th April 2026. This is 18% where BADR applies to disposals on or after 6th April 2026.
• The limit. You can claim a total of £1 million of BADR over your lifetime.

Because tax rules can change and eligibility depends on your circumstances, early planning matters.

Concerned about the 2026 rate change? Speak to our team about tax planning well in advance of your exit.

The takeaway: a high valuation is a deliberate project

If you are keen to plan how to increase business value, the sooner you start the better.

That way, over the next few years, you can help future buyers have greater confidence in:

• Your financial situation (credible, well-supported earnings).
• Your systems (repeatable delivery that’s possible without you).
• Your resilience (there are no hidden legal or operational surprises).

How to increase your business value – next steps

Don’t guess your starting value. Get in touch today to arrange a strategic review and a baseline business valuation, so you can measure progress over the next five years.

This article is general information, not tax or legal advice. Rules can change and outcomes depend on your circumstances.