Exit strategy in practice – how to effectively plan a sale or IPO in SMEs and start-ups

Planning your exit from business is not a sign of pessimism, but of professionalism. A well-designed exit strategy increases the value of the company, minimises transaction risk and gives the owner control over the timing and manner of the exit, i.e. the sale of the company. This is not just a topic for large companies and corporations – more and more owners of start-ups and SMEs are actively planning their ‘happy ending’ and transition from owner to investor or rentier.

What is an exit strategy?

An exit strategy is a planned way of exiting an investment – through the sale of the company, going public, handing over the reins to a partner or gradually transferring ownership (e.g. in a family succession model). The aim is to monetise the value of the company at the optimal moment and in the optimal form – financially, legally and operationally.

A well-planned exit protects the interests of the owner and their family, secures employees and customers, and can attract the attention of quality investors – knowing that there is a clear exit plan in place.

Typical exit paths

There are several classic scenarios for exiting a business:

• Sale to a strategic investor: good valuation, opportunity for further development of the company within a larger organisation.

• IPO (Initial Public Offering): going public brings prestige and the opportunity to raise significant funds, but it is costly and requires a lot of paperwork.

• MBO (Management Buy-Out): the management team takes over the company, which often allows for continuity and organisational culture to be maintained.

• Family succession: transferring the company to the family is a common model in Poland, but can be difficult to implement.

• Sale to an investment fund (VC/PE): a good solution for start-ups and companies with growth potential, but involves a high degree of external control.

When should you start thinking about exiting?

The best time to start planning your exit is... now. Even if the owner does not plan to sell the company in the near future, it is good to have a strategy in place in case of unexpected circumstances. Exit planning is also part of sound management – a company that is prepared for sale is a well-organised, stable and more attractive company for the market.

5 pillars of sales preparation

1. Business plan and KPIs – investors expect a clearly defined strategy and realistic financial data.

2. Valuation – knowing the value of the company allows you to negotiate from a position of strength.

3. Readiness for due diligence – complete financial, legal and operational documentation.

4. Operational independence – a company that operates without the direct involvement of the owner is more valuable.

5. ESG aspects – social responsibility, sustainable development and good management structure are increasingly influencing investors' decisions.

What does the sales process look like?

The sale process can be divided into several stages:

1. Assessment of readiness for sale – analysis of the company in terms of its attractiveness to investors.

2. Selection of an advisor – an experienced M&A advisor will help you through the entire process.

3. Preparation of documents – investment teaser, information memorandum, financial forecasts.

4. Preparation of a Virtual Data Room – a secure space for sharing documents with potential investors.

5. Search and selection of investors – networking, meetings, preliminary talks.

6. Negotiations and signing of a preliminary agreement (LOI).

7. Finalisation – due diligence, signing of the SPA (Sales Purchase Agreement), closing of the transaction.

What is a VDR and why should you use it?

VDR (Virtual Data Room) is a secure digital space where a company can share confidential documents with potential investors, advisors or business partners. During the sale, investment or due diligence process, VDR significantly:

• increases information security – only authorised persons have access,

• speeds up the transaction process – everything in one place,

• ensures full control – the ability to track who viewed the documents and when.

Case study: Just Join IT

The example of Polish start-up Just Join IT shows that an exit does not necessarily mean a complete exit. The company attracted minority investors, which gave it capital and support while allowing it to retain control. This model of a staged exit may be attractive to many founders, especially in the technology sector.

Checklist: Is your company ready for exit?

✅ Well-organised financial statements (balance sheet, profit and loss statement, cash flow statement)

✅ Clear ownership structure

✅ Written development strategy and expansion plans

✅ Competent management team

✅ Competitive advantage (technology, brand, customer base)

✅ Secured intellectual property rights

✅ Policies compliant with the law and good practices (compliance)

Summary

An exit strategy is a key element of conscious business management. Even if you are not thinking about selling today, preparing for the future will allow you to operate with greater peace of mind, build value and make decisions based on a long-term perspective.

About us

DealDone is a specialised company offering high-quality products in the field of information and data security. We offer digitisation services and software in the field of modern technologies for the circulation of confidential information, classified information, sensitive data, and the digitisation, security, encryption, and sharing of data and documents within and outside organisations.

For over 10 years, DealDone has specialised in providing solutions for the digitisation, archiving and sharing of documents in the form of a Document Management System (DMS) or Virtual Data Room (VDR).

DealDone independently developed and launched the SECUDO VDR system. SECUDO is a platform for the secure digitisation, archiving, exchange and processing of documents and company data offered in the cloud, in a Software-as-a-Service model, for business customers.

DealDone also owns the www.platformainwestora.pl and www.sprzedamfirme.com portals, through which it supports transaction processes related to the sale of companies, raising capital and finding investors for projects.