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Strategic advice on business valuation, exit timing, and negotiation tactics from Unity Group partner Callum Laing
When it comes to selling your business, most entrepreneurs only get one shot at getting it right. That’s why learning from someone who’s facilitated over 100 company exits can save you from costly mistakes and help you maximize your business valuation.
In a recent episode of The Exit Podcast, we sat down with Callum Laing, partner at Unity Group, to discuss the tactical side of M&A, business preparedness, and the often-overlooked strategies that can dramatically increase your exit value.
The Truth About Exit Preparation: It’s Not What You Think
If you’ve been meticulously organizing data rooms and perfecting your financial statements for years in preparation for an exit, you might be focusing on the wrong things.
Laing’s perspective challenges conventional wisdom: “I wish companies were more prepared. But having said that, it really doesn’t matter. If the acquirer can see value, the fact that you haven’t got your data rooms all put together and all of that sort of stuff is irrelevant.”
Instead of obsessing over paperwork, Laing suggests a more strategic approach inspired by a data center entrepreneur he met in the early 2000s. This founder deliberately targeted Yahoo’s customers, even taking deals at a loss, knowing it would irritate the tech giant enough to come knocking with an acquisition offer. The result? Yahoo approached him within three months, putting him in the power seat during negotiations.
The lesson: Understanding your strategic value to potential acquirers matters far more than having perfect documentation.
The Critical Shift: From Tax Minimization to Profit Maximization
Here’s a fundamental mistake many business owners make when preparing for exit: they continue optimizing for tax efficiency when they should be optimizing for valuation.
Most small businesses run their finances to minimize tax liability, which makes perfect sense during normal operations. However, if you’re seriously considering an exit, this strategy works against you.
“Most businesses are run financially for the lowest possible tax,” Laing explains. “If you are seriously thinking about selling, you want to have a word with your accountant and start focusing everything around maximizing profit, which will also increase your tax. But if you’re going to be selling for a multiple of profit, then that’s a much better number to be going after.”
This shift can dramatically impact your valuation. The difference between a 3x multiple on minimal profits versus maximized profits can mean hundreds of thousands or even millions of dollars in sale price.
Understanding Your Buyer: The Key to Positioning Your Business
Not all buyers are created equal, and understanding what different types of acquirers value can transform your exit strategy.
Laing distinguishes between two primary buyer mindsets:
Venture Capitalists and Growth Investors focus heavily on upside potential. They want to know if you could become a billion-dollar company, accepting that nine out of ten investments might fail if one hits it out of the park.
Family Offices and Conservative Buyers prioritize downside protection. They’re less concerned about exponential growth and more focused on capital preservation and steady returns.
“If they put money into your business, if they acquire your business, what are the chances that they’re going to lose money on this deal?” Laing notes about family office thinking.
Pitching future growth potential to a family office will likely fall flat, while a conservative, risk-averse presentation to a VC will seem uninspiring. Know your audience and tailor your positioning accordingly.
The Biggest Mistakes Entrepreneurs Make in M&A
After facilitating 100 company exits, Laing has seen virtually every mistake possible—often twice, as he jokes.
The most common pitfall? Treating your exit as a one-time event rather than a learning opportunity.
“The problem with selling the business for most people is it’s a once-in-a-lifetime opportunity, and you tend to make all of your mistakes on the first one,” Laing observes.
His unconventional advice, influenced by his business partner Jeremy Harbour, is surprising: sell your business as soon as you can.
The reasoning is compelling. Most entrepreneurs start businesses to gain more time and money, but end up with less of both. An exit returns these critical resources, allowing you to pursue new opportunities with experience, capital, and time on your side.
This approach also hedges against market volatility. Software-as-a-Service companies, for example, were commanding 20-30x revenue multiples just three years ago. Today, AI disruption has significantly impacted those valuations. Markets change quickly, and waiting too long can cost you dearly.
The Power of Advisory Boards: The Easiest Growth Hack
One of Laing’s most actionable insights centers on advisory boards—a strategy he calls “probably the easiest hack that anyone can do to give their company a boost that doesn’t need to cost you any money.”
Here’s the framework he recommends:
- Create your own advisory board with 3-5 experienced professionals from different industries and networks
- Serve on at least two other advisory boards to gain perspective and learn from others’ solutions to problems you haven’t solved yet
The benefits extend beyond operational advice. Laing shares a powerful example: he struggled to raise capital at a $1 million valuation, but after assembling an advisory board featuring professionals from Google, Yahoo, and Microsoft, he raised money at a $10 million valuation just six weeks later. The business hadn’t changed—only his credibility had.
“Nothing had shifted about the business, just the fact that I had those advisors sitting on my board,” Laing recalls. “So it’s incredibly valuable.”
Negotiation Tactics: Creating Demand for Your Business
When it comes to negotiation, Laing’s advice is straightforward but challenging: “You need to be, they need to want you more than you need them.”
This comes down to basic supply and demand economics. If multiple buyers want your company and there’s only one of you, your value increases. If buyers have endless options and aren’t particularly excited about your business, your value decreases.
The public market data supports this. Over the past 50 years, half of companies that went public decreased in value, with that number climbing to nearly 70% in the last decade. The culprit? Supply and demand imbalance—too many companies seeking capital, not enough interested investors.
To create demand for your business:
- Get on the radar of multiple potential acquirers before you’re ready to sell
- Build relationships with strategic buyers in your industry
- Position yourself as solving a specific problem they have
- Create scarcity by being selective about who you engage with
The worst negotiating position is appearing desperate or being just one of thousands of similar companies for sale.
When Is the Right Time to Exit?
Timing an exit involves balancing personal goals, market conditions, and business maturity. While there’s no universal answer, Laing emphasizes thinking of exits as stepping stones rather than final destinations.
For the companies Unity Group takes public, the focus isn’t on founders completely exiting but rather leveraging capital markets to scale while maintaining control. This hybrid approach allows entrepreneurs to achieve liquidity without walking away from businesses they’ve built.
However, Laing acknowledges the rapid pace of change in modern business. Market conditions, technology disruption, and competitive dynamics shift quickly. Waiting for the “perfect” time often means missing good opportunities.
Consider your objectives honestly: Are you building a legacy business for the next 20 years, or would achieving liquidity sooner allow you to pursue other opportunities with more resources?
Key Takeaways for Entrepreneurs Considering an Exit
- Strategic positioning matters more than perfect preparation. Identify potential acquirers and understand why your business would be valuable to them specifically.
- Shift from tax minimization to profit maximization at least 1-2 years before a potential exit to improve your valuation multiple.
- Understand your buyer’s priorities. Tailor your pitch to what they care about—upside potential or downside protection.
- Build an advisory board early. The credibility and connections will benefit you whether you exit or continue growing.
- Create demand through scarcity. Engage with multiple potential acquirers rather than approaching just one.
- Don’t wait for perfect conditions. Markets change rapidly, and exiting sooner rather than later allows you to capitalize on new opportunities with more resources.
- View exits as learning experiences. Each transaction teaches valuable lessons for the next opportunity.
Final Thoughts
The path to a successful exit isn’t about luck or perfect timing—it’s about strategic thinking, understanding market dynamics, and positioning your business as the solution to a specific buyer’s problem.
As Laing learned from his dot-com bubble experience, success isn’t always about being the smartest entrepreneur in the room. It’s about learning from mistakes quickly, adapting to market feedback, and giving yourself permission to course correct when things aren’t working.
Whether you’re years away from considering an exit or actively preparing for one, the strategies Laing shares provide a roadmap for maximizing value while avoiding common pitfalls that trap first-time sellers.
Ready to explore your exit options? Get a free business valuation at Flippa.com and discover what buyers are looking for in businesses like yours.
Listen to the full conversation with Callum Laing on The Exit Podcast for more insights on M&A strategy, capital raising, and entrepreneurial growth.
Connect with Callum Laing on LinkedIn or visit CalumLaing.com for free copies of his books on business strategy and capital markets.
