Monitoring Performance When You Have a Strategy to Exit

For small and mid-sized businesses preparing for an exit, whether through acquisition or succession, performance monitoring becomes a strategic discipline. Every metric you track sends a signal to potential investors. Each quarter is an opportunity to build enterprise value or risk eroding it. According to Bain & Company, successful exits are not just about timing. They are about preparation and execution that maximise returns. 

McKinsey & Company highlights that many businesses struggle to bridge the gap between strategy and execution. Only a small percentage feel confident in their ability to execute strategy effectively. For businesses planning an exit, this gap can be costly. Strategy must be treated as a dynamic framework that evolves with performance insights and market shifts.

Three Tips to Strengthen Strategy Execution During Exit Planning 

1. Prioritise Value-Driving Metrics: Not all key performance indicators (KPIs) are equally important. Focus on those that influence valuation, such as recurring revenue, margin expansion, customer retention, and capital efficiency. These metrics build investor confidence and support your exit narrative. 
   
   
2. Look for Patterns, Not Just Results: A single strong quarter is encouraging, but consistent trends are more valuable. Use performance data to identify where growth is accelerating, where margins are holding, and where operational inefficiencies may be emerging. These patterns help validate your strategy or highlight areas that need attention. 
   
   
3. Challenge Your Assumptions: Your strategy is built on assumptions about your market, team, and customers. Use performance signals to test these assumptions. If conversion rates are falling or customer churn is rising, investigate the root cause. Early detection allows for timely adjustments that protect value.

• Which KPIs have the greatest impact on our valuation? 
• Are we seeing consistent performance trends or isolated successes? 
• What assumptions underpin our strategy, and are they still valid? 
• Do our reports clearly communicate progress to investors?

Let’s Sharpen your Strategy to Exit 

If your performance signals are unclear, inconsistent or not aligned to your exit strategy, now is the time to act. We work with shareholders, CEOs and leadership teams to refine strategy and ensure the focus is on delivery and enterprise value.