Exit planning starts at launch: why founders must pick their buyer years before a sale

Founders who treat exit planning as a late-stage chore are making a costly mistake, according to the investors and entrepreneurs who took the stage at SCALE London 2026. The summit's panel, The Long Game: Funding routes and paths to exit, made the case that the moves which determine whether a sale succeeds, or happens at all, are baked into a company long before buyers come knocking.

Chaired by Karim Palant, director of external affairs at UK Private Capital, the discussion brought together Will Fraser-Allen of Albion Capital, Allison Stuckless of Vericor Capital, private equity adviser Joan Mill and Howard Davies, co-founder of Salcombe Distilling Company. Between them they have decades of exits, acquisitions and near-misses. Their consensus was blunt: the groundwork for a clean, valuable exit is laid at the start.

Name your acquirer before you launch

Howard Davies settled on his exit strategy at a barbecue in 2014, before the first bottle of Salcombe Gin had shipped. "From day one we decided to build and structure the business around the idea of being acquired by LVMH," he said. The luxury conglomerate owned a strong spirits portfolio but had no gin brand. That gap defined every subsequent decision: brand differentiation, gross margin targets, the territories where Salcombe needed to prove traction. "Every decision was shaped by trying to answer those questions," Davies explained.

However mad it might seem, say out loud whoever is the best acquirer for your business. Do your research, look at the businesses they've bought in your segment, and get a sense of how you could fit into that category.

Joan Mill endorsed the approach across sectors. Reverse-engineering a likely buyer's criteria forces discipline that retrospective fitting never achieves.

Keep the cap table simple

Mill was direct about what kills deals before financials are even reviewed. "I've looked at businesses with a cap table of 20 or 25 people, and I've said 'Absolutely not!' Because when it gets to the next stage, whether it's series A or B, it gets very complicated when it comes to valuation."

Davies faced the same risk early on. Salcombe's crowdfunding rounds threatened to put hundreds of small investors directly on the register. "We were like, 'no way do we want a thousand people on our cap table'," he said, until a nominee structure solved the problem. A clean shareholder list is not just administrative hygiene; it signals to acquirers that the business is run for scale, not sentiment.

Align investors, team and valuation early

For Will Fraser-Allen, alignment is the single biggest predictor of a smooth exit. "There are enough things that can go wrong during an exit process," he said. "Your trading might dip. Alignment between buyer and investors is something you'll need the whole way through."

Valuation greed at funding rounds is a common source of misalignment. Founders who chase the highest possible price at each stage can leave investors "feeling stretched" and demanding an outsized return that may not match the founder's own timeline or appetite.

If someone comes in at a high valuation to get their targeted return, three, five or ten times their money, they will be looking for a very significant sale. That may not be the same as you.

Internal alignment matters equally. Fraser-Allen urged founders to ask whether any team member would resent the eventual buyer or their own payout. Those conversations belong in the boardroom, not the data room.

Backers who share your values

Allison Stuckless built her model, acquiring a single profitable UK business and stepping in as chief executive, on the quality of her investor base. It took 18 months to assemble 14 backers. "Alignment of values was the biggest factor because they're going to be around for the next 10 years," she said. "I feel like I have partners, and I'm not doing it by myself."

She also highlighted a structural trap: owner-led businesses where relationships are non-transferable. "The owner has so much weight in the business, and so I often have to leave these amazing opportunities because there's no way that I could continue those relationships." Founders planning a long-term exit must make themselves dispensable.

A domestic story is a harder sell

On international reach, Fraser-Allen was unequivocal. "We wouldn't even be in the room if it was just a UK story," he said. "A business that is purely UK-based is going to be less valuable than one that can tell a global story." Stuckless framed overseas revenue as de-risking rather than pure growth, a distinction that sharpens the pitch to buyers.

Stuckless also flagged the persistent funding gap for female founders: equity investment for women fell to 1.3 per cent in 2025. Her practical advice was to target specialist investors and secure SEIS funding early, since it signals to acquirers that critical groundwork is done.

The themes explored at SCALE London will continue at SCALE Manchester on 25 November, with sessions on building a sellable business, going global and fairer fundraising. For founders, the takeaway is clear: the exit is not the finish line. It is the architecture you choose at the start.