Kishen Patel
Founder, Consult EFC | ICAEW Chartered Accountant
Kishen works with UK founders to optimise business valuations 12–24 months before an exit. As a Chartered Accountant, he bridges the gap between messy accounts and premium multiples, ensuring that when you face a buyer, your financial story is de-risked and your exit price is protected.
Table of Contents
| Business Category | Typical Multiple |
|---|---|
| Standard UK SME | 3x – 8x EBITDA |
| SaaS / Tech-Enabled | 3x – 6x ARR |
As an ICAEW Chartered Accountant and Corporate Finance Adviser, I see buyers use due diligence to find reasons to ‘chip’ your price. Here is how to defend it.
A Business Valuation is, in plain English, the price a buyer is willing to pay today for the cash they believe the business can produce tomorrow.
2026 Market Insight: In the current UK market, benchmarks show small businesses trading at 3x to 8x EBITDA. However, with the recent changes to Capital Gains Tax (or BADR), the ‘Net-of-Tax’ result for founders now requires a higher entry multiple to achieve the same lifestyle exit.
This post covers five value drivers that reliably lift sale price. They work best when you start 12 to 24 months before an exit, because buyers reward proof, not promises.
Don’t Leave Money on the Table
Knowing your value is one thing; defending it is another. Spend 30 minutes with Kishen Patel to stress-test your financials and ensure your multiple holds up under the “X-ray” of due diligence.
Identify the reconciliation gaps and “heroic” adjustments that buyers use as leverage to aggressively chip your offer price late in the deal.
Surface unrecognised recurring revenue and “add-backs” that can legitimately lift your EBITDA and multiply your final exit cheque.
● Next Availability: Only 2 Valuation Audits remaining for February.
1. Recurring Revenue and Retention Buyers Can Trust
If a buyer can predict next year’s revenue with confidence, they relax. When they relax, they pay more.
- Beyond SaaS: Non-SaaS firms can build repeatability through retainers, maintenance contracts, managed services, or framework agreements.
- The “Leaky Bucket” Risk: A recurring model with poor retention is a red flag. Buyers price in the effort required to keep the business afloat.
- Concentration Risk: If one customer accounts for >20% of revenue, they effectively set your valuation ceiling.
2. Predictable Profits with Clean, Buyer-Ready Accounts
Many founders think the sale price is mostly about performance. Performance matters, but confidence matters almost as much. Clean accounts reduce the “fear factor” in due diligence.
The Due Diligence Litmus Test
If a buyer asked for evidence behind your top 20 customers’ revenue, could you provide it in a day without panic? Clean books mean:
- Monthly Closes: Done on time, every time.
- Logical Add-backs: Legitimate one-off costs, not “hidden” lifestyle expenses.
- Real Forecasts: A “Three-Case” model (Base, Stretch, Downside) shows you have stress-tested the plan.
3. Reducing Founder Dependency (Key Person Risk)
Owner dependency is one of the fastest ways to slash a sale price. If you are the rainmaker and the lead operator, a buyer sees a “cliff edge” risk after you leave.
- Management Depth: Can the business perform while you are on holiday for a month?
- Standard Operating Procedures (SOPs): Moving knowledge from your head into a system makes the business “transferable.”
- Decision Rights: When everyone needs founder sign-off, you are the bottleneck. Buyers want to buy a machine, not a job.
4. Competitive Moats & Scalability
Competitive advantage is why customers stay; scalability is growth that doesn’t require costs to rise at the same speed.
- Evidence over Adjectives: Buyers don’t trust claims; they trust win rates, customer reviews, and renewal behavior.
- Unit Economics: What does it cost to win a customer (CAC) vs. what do you earn over their lifetime (LTV)?
- Systems for Scale: Automation in billing and onboarding allows you to grow without adding linear headcount.
5. A Strategic Growth Plan Buyers Will Fund
Buyers don’t pay top price for what you’ve already done. They pay for the future. The best growth plans feel like the next logical chapter, not a fantasy novel.
| Growth Lever | Why Buyers Like It |
| Pricing Power | Shows you have control over your market. |
| Adjacent Segments | Proves the model works in new territories. |
| Channel Partners | Shows a scalable, third-party sales force. |
Momentum Follows Action
Higher sale prices come from two things: lower risk and clearer upside. If you’re not sure where to start, pick one driver and improve it over the next 90 days. When you’re ready to make your Business Valuation exit-ready, Consult EFC can help you turn these drivers into evidence buyers will pay for.
Don’t Leave Money on the Table
Knowing your value is one thing; defending it is another. Spend 30 minutes with Kishen Patel to stress-test your financials and ensure your multiple holds up under the “X-ray” of due diligence.
Identify the reconciliation gaps and “heroic” adjustments that buyers use as leverage to aggressively chip your offer price late in the deal.
Surface unrecognised recurring revenue and “add-backs” that can legitimately lift your EBITDA and multiply your final exit cheque.
● Next Availability: Only 2 Valuation Audits remaining for February.
Complementary Strategic Support
Optimising your valuation is the first step. To ensure a successful transaction, Consult EFC provides integrated support across the entire deal lifecycle.
Fundraising Readiness
Preparing your financial model and data room for institutional investors or private equity rounds.
Explore Fundraising →M&A Sell-Side Advisory
Technical due diligence support to protect your equity and manage buyer enquiries during the exit process.
Explore M&A Readiness →
