Mastering Business Succession & Exit Planning with Daryl Bates-Brownsword

At some point, every business owner faces the inevitable question: "When and how should I exit my business?" It's a crucial decision that can determine the financial future of the owner and the longevity of the company. On Business Growth Talks, we had the pleasure of speaking with Darryl Bates-Brownsword, a business succession and exit planning specialist, about how business owners can ensure a smooth and profitable transition.

Who is Darryl Bates-Brownsword?

Darryl is a partner at Succession Plan UK and has over 20 years of experience in business strategy, systems thinking, and leadership. Having built two multi-million turnover international businesses—one operating in 16 countries—he understands the intricacies of creating sustainable, scalable, and sellable companies.

Originally from Australia, Darryl started his career as a mechanical engineer in the power industry before transitioning into business consulting. His expertise lies in helping mid-market business owners maximize the value of their companies and ensuring they are "exit-ready" when the time comes.

The Business Mindset for Success

Darryl believes that the right business mindset consists of two key elements:

1. Taking Full Responsibility – Entrepreneurs must embrace the responsibility of generating their own income rather than relying on a salary.

2. Solving Problems for the Market – A successful business is built around solving pressing problems in a unique and effective way. Identifying market gaps and creating solutions that people are willing to pay for is at the core of business success.

Starting a Business: The First Steps

For aspiring entrepreneurs, Darryl advises that before launching a business, they should:

• Ensure they are solving a real problem that people care about.

• Conduct market research to validate the demand for their idea.

• Identify whether their business will succeed by offering a new solution to an existing problem or a new market for an existing solution.

The Importance of Exit Planning

One of the biggest mistakes business owners make is waiting too long to think about their exit strategy. Darryl emphasizes that business owners should be considering their exit from day one. Here’s why:

• 55% of business exits are unplanned due to factors like illness, financial distress, or changes in market conditions.

• Investors and buyers want clear exit strategies to ensure they can recover their investment.

• An exit-ready business is more attractive to buyers and commands a higher valuation.

Different Exit Strategies

Exiting a business doesn’t always mean selling it outright. Darryl highlights multiple exit strategies, including:

• Selling to a larger company (M&A or private equity deals).

• Passing the business to employees through employee ownership models.

• Hiring a CEO and stepping back while maintaining ownership.

• Gradual transition into a chairman role while maintaining influence over the company.

He warns against holding onto a business for too long. Many business owners mistakenly believe they should wait for a "perfect moment," only to see the value of their business decline as they lose passion and momentum.

The Succession Plus UK 21-Step Methodology

Darryl and his team use a structured 21-step process to prepare businesses for a smooth transition. This framework includes:

1. Identifying business value – Assessing financials, operations, and growth potential.

2. Protecting assets – Ensuring risk mitigation strategies are in place.

3. Maximizing valuation – Strengthening brand reputation, leadership, and operational efficiency.

4. Extracting value – Preparing for negotiations, buyer outreach, and deal structuring.

5. Managing generational wealth – Planning for financial security post-exit.

How to Value a Business

Business valuation is often a complex process. While EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is commonly used, other key factors include:

• Industry benchmarks – Comparing valuation multiples within the industry.

• Revenue stability – Assessing recurring income streams and customer retention.

• Leadership structure – Evaluating whether the business can run without the owner.

• Market positioning – Considering competitive advantages and unique selling points.

Challenges in Business Growth and Succession

Darryl acknowledges that many business owners get stuck at key revenue points (e.g., £1M turnover) due to control issues and reluctance to delegate. Scaling a business requires shifting from direct involvement to structured management and leadership.

One of his biggest challenges? Adapting to the UK business culture. Despite shared language and heritage, he found that British business interactions often involve more indirect communication compared to the straightforward Australian approach.

Final Thoughts: The Future of Succession Planning

Looking ahead, Darryl and his team are focused on digitizing their 21-step exit planning methodology to make it accessible to other advisors worldwide. This innovation will allow more business owners to maximize the value of their life's work and ensure successful transitions.

Where to Find Darryl

For business owners seeking expert guidance on succession and exit planning, you can find Darryl at:

• Website: succession.plus/UK

• LinkedIn: Search for Darryl Bates-Brownsword

• Podcast: Exit Insights (Available on Spotify, Apple Podcasts, and other platforms)

Conclusion

Every business owner will exit their business eventually—the question is whether they will do it on their terms or be forced into an unfavorable situation. With proper planning, businesses can increase valuation, reduce risks, and secure a lucrative and strategic exit. If you haven’t started thinking about your exit strategy yet, the best time to start is now.