Which business exit strategy is right for you? Trade Sale, MBO, EOT or MVL?

Exiting your business is one of the most important decisions you’ll ever make. Whether you’re planning for retirement, want to reduce your day-to-day involvement, or simply feel it’s time for a new chapter, choosing the right exit strategy can have a lasting impact on your legacy, your finances, and your team.

However, there is no one-size-fits-all approach. What’s right for one business owner might be completely wrong for another. The key is understanding your options then weighing them against your goals, timeline and personal values.

At A4G, we work closely with business owners to explore those options in plain English, giving you clarity and confidence as you move forward. Our M&A and succession planning team have helped hundreds of business owners explore their exit routes, weigh up the risks and rewards, and make informed, confident decisions.

Below, we’ve summarised the most common exit routes available and when each one might be the best fit.

1. Trade Sale – Selling to a third party 

Best for: Owners looking to fully exit and maximise value.

Selling your business to a competitor, supplier, customer, or investor is often what people imagine when they think of “exit planning.” Done well, a trade sale can achieve a clean break and a strong price particularly if you’ve worked on increasing your EBITDA and minimising business risk.

What to consider:

You’ll need your business to be able to function without you, ideally with robust systems and a reliable management team already in place.

The sale process can be lengthy and intense, so preparation is key.

Tax implications are significant make sure you’re maximising reliefs like Business Asset Disposal Relief (BADR).

2. Management Buyout (MBO)

Best for: Owners who want to exit gradually or keep the business in familiar hands.

An MBO allows your existing management team to buy you out over time. It can be a great option if you trust your team, want to avoid the disruption of a sale process, and like the idea of continuity for staff and clients.

What to consider:

The management team may need external funding or vendor financing (you staying involved financially for a time).

It can be less stressful than a trade sale but still needs clear planning, valuations and legal support.

3. Employee Ownership Trust (EOT)

Best for: Owners who want to preserve company culture and reward their employees.

EOTs are becoming increasingly popular, especially among owners who care deeply about their team and long-term legacy. You sell a controlling stake in the business to a trust, which then runs it for the benefit of the employees.

What to consider:

Qualifies for 0% Capital Gains Tax (yes, zero!) but only if set up correctly.

Works best in well-established, profitable businesses.

Not always the best option if you’re looking for the absolute highest sale price.

4. Members Voluntary Liquidation (MVL)

Best for: Closing a solvent business and extracting value tax-efficiently.

If your business has served its purpose and you’re ready to close it down, perhaps you’re retiring or the business is no longer needed, an MVL can help you access the retained profits with minimal tax.

What to consider:

Often paired with BADR to reduce Capital Gains Tax to 10%.

You’ll need a licensed insolvency practitioner to handle the process.

Useful if you don’t want to sell or pass the business on.

5. Family Succession

Best for: Owners with a family member who is ready, willing and capable of taking over.

Passing the business to the next generation can be incredibly rewarding but it’s not without its pitfalls. Family dynamics, unclear roles and a lack of succession planning often create more problems than solutions.

What to consider:

Start early, many succession plans fail due to lack of preparation.

Make sure the next generation genuinely wants the business and has the right skills to run it.

You may need to create a gradual handover period, rather than a sharp exit.

Read more: Only 15% of small business owners can step away without chaos | 3 Lessons to learn from TV’s Succession