For business owners considering an exit, the question is often framed as one of timing: is now the right moment to sell? In reality, the answer is more nuanced. Market conditions matter, but in 2026 outcomes are increasingly driven by preparation, optionality and the ability to present a business in a way that builds buyer confidence. In practice, the gap between well-prepared and underprepared businesses has never been wider.

These observations are grounded in Cavendish’s recent transaction experience across the Midlands and wider UK market.

Readiness over market timing

There is no single “perfect” window to exit. Strong businesses continue to transact in a range of conditions, while weaker or less well-prepared assets can struggle even in more favourable markets.

Across a number of recent processes, we have seen businesses engage with the market before all of the key building blocks are fully in place. In these cases, early interest can give way to increased scrutiny as due diligence progresses, particularly around forecasting, cash dynamics or management bandwidth. If performance then tracks below expectations during a live process, buyers can become more cautious and timelines can extend. In our experience, outcomes in these scenarios are often not a reflection of the underlying quality of the business, but of how ready it is to withstand the level of scrutiny that a transaction inevitably brings.

Separately, challenges can emerge where performance expectations are set ahead of what a business ultimately delivers. Where forecasts prove ambitious, particularly in areas exposed to external dependencies, can prompt buyers to shift their focus toward downside risk and the durability of key revenue streams. Once that confidence is challenged, it can be difficult to rebuild momentum, with implications for valuation and certainty of outcome. Credible and resilient projections are therefore critical to maintaining buyer conviction.

These examples underline a consistent theme: timing matters, but preparation matters more. Value is rarely lost because of market timing alone; it is lost where preparation does not support the level of scrutiny a transaction brings.

Keeping the IPO option open

IPO activity has been subdued in recent years, but in 2026, there are clear signs that conditions are improving, supported by improving liquidity, regulatory reforms and renewed appetite from institutional investors to deploy capital.

For the right business, an IPO should therefore be considered a credible exit route alongside private M&A and an option that is often under-utilised for Midlands businesses.

One of the advantages of an IPO is flexibility. It can offer partial liquidity for shareholders, access to growth capital and a platform for future acquisitions. However, it is rarely an alternative that can be pursued in isolation. Leading processes increasingly involve dual-track approaches, where an IPO is developed in parallel with a private sale, allowing shareholders to assess real-time investor appetite and maximise competitive tension between public and private market routes.

This approach highlights an important consideration for business owners: keeping all options open until late in the process can materially enhance outcomes. It also reinforces the importance of working with advisers who can genuinely assess and execute across both private and public market routes.

Looking beyond a full scale

Not all exits involve a full sale. For many founders and shareholders, succession planning – whether through a partial sale, management buy-out or minority private equity investment – offers a practical route to de-risk or raise capital to support future growth.

In recent transactions that Cavendish has advised on, we have seen that when businesses operate in attractive markets and engage with potential buyers from a position of control, even an initial bilateral approach can be leveraged effectively. By grounding discussions in a clear view of valuation benchmarks and maintaining credible alternatives, companies can create upward pressure on pricing while preserving flexibility should a wider process be required.

There is rarely a one-size-fits-all approach to succession decisions. The optimal route depends on the specific dynamics of the business, its market and the shareholder objectives. Tailoring the process accordingly, whether that involves selectively introducing competition, running parallel workstreams or carefully sequencing engagement, allows momentum and tension to be managed more effectively. This more considered approach to process design is often a key driver of value, deal certainty and negotiating leverage, particularly when compared to more formulaic, volume-driven approaches.

Planning ahead to protect value

Across all exit routes, the common themes are clear: buyers are focused on quality, predictability and credibility. Anything that creates uncertainty around these factors can quickly erode value or delay a transaction.

For business owners, this means that exit planning should begin well in advance of any formal process. Strengthening financial reporting, addressing potential due diligence issues, building out management capability and articulating a clear equity story are all levers that can materially influence outcome.

Equally, considering the full range of exit options is increasingly important. The optimal route will depend on the specific characteristics of the business and the objectives of its shareholders, but maintaining flexibility and competitive tension is key.

Ultimately, in a market where buyers are increasingly discerning, preparation, optionality and intelligently designed processes are no longer advantages; they are essential to achieving the right outcome.

Originally published in Birmingham Business Magazine July 2026