Exit route comparison

You rate six factors as Not important, Important or Very important. Each exit route has a typical score for each factor, and the tool weights those scores by your ratings. It then ranks a trade sale, private equity, a management buy-out and an Employee Ownership Trust by how well each fits your priorities, shown as a percentage.

It depends on what matters most to you. On a qualifying sale of a controlling interest to an Employee Ownership Trust, only half the gain is taxed, at normal capital gains tax rates, so the tax is usually lower than on a trade sale, and it keeps the business independent. But the price can't exceed market value and is usually paid over time, while a trade sale often gives the highest price upfront.

That depends on your priorities, the buyers available, your management team and your own tax position. A trade sale often suits owners who want the highest upfront price, while an MBO or EOT suits those who value continuity. The comparison tool is a useful starting point, and an adviser can test each route against the facts of your business.

In a trade sale, a company in your sector buys the business, which is usually absorbed into the buyer. In a private equity deal, a fund or PE-backed platform buys it, and the price is usually part cash and part rollover equity. With private equity, you often stay involved for a period and share in future growth.

Private equity deals often involve rollover equity, where you reinvest part of your proceeds in shares of the new structure. That gives you a stake in any further growth and a second payout when the fund sells. The rollover needs careful structuring so that tax is deferred on the part you don't receive in cash.

In an MBO, the price is often paid over time from the company's future profits. If the deal isn't structured carefully, HMRC can argue that some of the payments are income rather than capital, which is taxed at higher rates. Getting the structure right, and HMRC clearance where needed, is key to protecting capital treatment.

The scores reflect how these routes typically compare, not the outcome of any particular deal. In practice, the price, timing and tax depend on your business, the buyers interested and how the deal is structured. Treat the ranking as a way to focus your thinking, not as a recommendation.

No. The tool doesn't ask for any figures and doesn't check whether you qualify for Business Asset Disposal Relief or EOT relief. Its tax scores reflect how the routes usually compare. To estimate your own capital gains tax, try the BADR saving calculator, then talk to us about the details.

No. The tool runs in your browser, and your choices aren't stored or sent anywhere. If you accept analytics cookies, we record only that the tool was used, not how you rated each factor. It's free to use, and you don't need to sign up or give any contact details.

Read our guides to the routes that scored highest for you, then test them against your own circumstances. We advise owners on exits worth £1m to £50m, led by a Chartered Tax Adviser with a Big 4-trained team. Book a call, email taxadvisory@aswatax.co.uk or message us on WhatsApp, and we'll reply within one working day.