Thinking about your exit? Ramp up marketing now.
If you’re a business owner considering a sale, whether to a trade buyer or through a management buyout, there is a strong commercial case for increasing, not reducing, marketing activity in the years leading up to exit.
Naturally, you’ll want to make your financials as healthy as possible to attract the best possible multiple. Calculator-wielding accountants and advisers will often recommend tightening costs by renegotiating supplier contracts, freezing recruitment and salaries, reducing training budgets, and cutting unprofitable clients. Increasing prices is another common recommendation.
All sensible measures but they overlook one critical factor in maximising business value: marketing.
Increasing marketing activity before a sale can significantly strengthen both performance and perception. A well-executed marketing and PR strategy raises profile, generates enquiries, attracts new customers, and positions the business as a growing, ambitious and investable company.
Ideally, marketing activity should begin at least two years before a planned exit. With clear commercial objectives in place, campaigns can be tailored to support growth and visibility in the market.
A coordinated mix of SEO, email marketing, speaking opportunities, award entries, advertising, trade shows, newsletters and editorial coverage can increase awareness and generate momentum. At the same time, strategic PR activity helps position the business in front of trade media, investors, bankers, corporate finance advisers and legal professionals – the audiences most connected to deal-making activity.
As visibility grows, interest tends to follow. Competitors, investors and overseas buyers looking for a foothold in the UK market frequently begin to take notice. In the strongest cases, multiple parties compete to acquire the business.
Marketing alone does not create a successful exit, but it can materially influence valuation and buyer appetite. Without a strong profile and market presence, many businesses risk achieving a lower sale price.
This pattern has repeated itself consistently across multiple sectors, from manufacturing and technology to specialist service industries. Businesses that invest in profile-building and customer acquisition ahead of a sale are typically better positioned in the market and more attractive to buyers.
Corporate finance advisers play a critical role in structuring successful deals, but marketing and PR have an equally important part to play in creating commercial momentum and perceived value.
While some advisers focus primarily on reducing costs, effective marketing focuses on growth – attracting more customers, increasing visibility and strengthening market position.
Put simply, marketing and PR are not intangible or unnecessary expenses. In the right hands, they are commercial tools that deliver measurable return on investment and can play a decisive role in a successful exit.
We are often thanked for the contribution our marketing activity has had on a successful and lucrative exit.
If you’re thinking about an exit and would like to hear how we could support your plans, get in touch.