There’s no one-size fits all path to engineering an exit. But knowing the right tools early can help founders exit, and exit well.  

Exiting a startup is one of the most significant milestones in a founder’s journey, but it’s also one of the most misunderstood. At our recent webinar, Great Founders Exit Smart: Lessons  They  Wish  They’d Learned Sooner,  we brought together three seasoned specialists, Stuart Clout, Fee Barry, and Angus Reynolds, to share insights from across the deals table. Their message was clear: smart exits don’t happen by accident. They’re engineered through foresight, transparency, and strategic alignment.  

So what do founders and teams need to know when exploring an exit? Read on for the top three takeaways or find the full recording at the bottom of the document.  

Early exit planning means optionality

One of the most critical insights shared during the webinar was the importance of early exit planning. Too often, founders believe that exit planning only requires a few years of documentation, preparation and planning. But the reality is very different. Exit’s require thoughtful due diligence and action many years in advance, ultimately requiring founders to think like a business that’s being sold for anywhere between 3-5 years. As Stuart Clout said "I would say it's a five-year program to get you exited. Plan for five years out, but if you're lucky, you might do it in three." 
 
Early planning gives founders time to build relationships, clean-up operations, and align their business trajectory with personal goals, creating optionality and the ability to choose your exit pathway. Fee Barry echoed this, noting that at Tidal Ventures, they discuss potential acquirers from day one. “It’s not about making a quick buck,” she said. “It’s about helping founders build life-changing wealth.” Early planning also allows founders to address issues like churn, product-market fit, or revenue gaps long before they become deal-breakers. As Angus Reynolds put it, “The first step costs you nothing. Just do the deep thinking  - what does the future look like for your business and for you?"

Identify potential acquirers early, and build trust over time

Understanding who might be interested in acquiring your business well before you’re ready to sell is another important part of a successful exit strategy. But with a million things on your plate, why should you invest time and energy in teams and people you might not even need for another 3-5 years? 

The reality of an exit means founders often stay on post-acquisition, working closely with the acquiring team, so these relationships can become imperative to your success post-deal. This means that making sure your strategic outcomes align with theirs. And how do you do this? By identifying potential acquirers early.  

Doing so means founders can build relationships and start to both understand their mandates, but also possibly align business strategies. This proactive approach not only makes the business more attractive, but increases the chances of a smoother and faster transaction when the time comes. 

As Angus said "at the end of the day, you've got to make sure you've got a relationship that's going to work."  

Transparency builds trust, and trust builds velocity 

Deals fall apart for many reasons, but lack of transparency around issues like churn, messy contracts or regulatory risks is one of the biggest. But as Fee Barry warned, “Don’t wait to drop the bad news. Flag it early. It builds trust and shows you’re proactive.” Stuart Clout added, “No business is perfect. Pretending otherwise is unhelpful.”  

This transparency isn’t just ethical but strategic. It helps founders stay in control of the process and avoid surprises that can derail a deal later down the line. Angus Reynolds explained that while small issues may not kill a deal, they erode confidence. “The little things undermine trust,” he said. “But it’s usually the big things, like unclear value drivers or regulatory uncertainty, that blow up deals.” Founders who are upfront about challenges can turn them into opportunities. For example, a churn issue might be seen by an acquirer as a value creation opportunity. “Have the bloody conversation,” Stuart Clout urged. “They’re going to find out anyway.”  

Transparency also accelerates the process. “Trust generates velocity,” he said. “And velocity gets the deal done.”  

Foundations of a smooth exit: the “boring stuff” 

While strategic alignment and relationships are key, the “boring stuff” matters too. Founders need clean financials, organised records, and a clear cap table. Speaking to equity dilution, Fee Barry emphasised the importance of modelling exit scenarios: “Run your cap table at $20M, $50M, $100M. Know what you’ll walk away with.” She warned that aggressive preference shares can leave founders with little or nothing at exit., which might dictate how you need to manage your capital table before your exit. If you’re taking on capital that limits your return, consider negotiating founder incentive schemes early. Misalignment between founders and investors can lead to poor outcomes for everyone.  

Tax planning is another critical, but often overlooked, component. Founders need both company and personal tax advice, and they need it early. Angus Reynolds noted that tax advisors should be among the first people brought in, even years before a sale. “It’s often a short conversation,” he said, “but it saves headaches down the track.”  Tax implications can affect everything from deal structure to personal wealth outcomes, and as Amanda Price pointed out, where you’re domiciled can make a difference. Founders who plan ahead can optimise their tax position, avoid surprises, and navigate exit outcomes with ease.  

Ultimately, the best exits are built on clarity, preparation, and alignment. Whether you’re dreaming of a billion-dollar IPO or a $5M retirement, the key is knowing what you want, preparing early, and building trust with the right people. As Stuart Clout said, “Start early. It takes longer than you think. Just like building a business.” 

But while many perceive exits as a means to an end, smart exits aren’t just about the outcome. They’re about vision, relationships, and readiness. Founders who embrace this mindset won’t just exit, they’ll exit well. 

If you'd like to catch the full webinar to hear more from our specialists, find the full recording on our events page here.