Ep.88 Why Only 1 in 5 Businesses Successfully Sell—And How to Be One of Them
With Kevin Harrington
Episode Description:
This episode features Kevin Harrington, a partner at Exit Factor, who discusses the critical importance of business exit planning for SMEs. Kevin shares his journey from civil engineering into marketing and business brokerage, highlighting how he and his partner Darrell launched their UK operations in Reading in early 2026. He emphasises that a truly successful business is one built to be “exit-ready” from day one, ensuring it is well-run, replicable, and not entirely dependent on the owner.
The conversation explores the structural and operational shifts necessary to increase a company’s valuation. Kevin explains his shift in measuring success: rather than focusing solely on suppressing tax, he prioritises demonstrating consistent profit streams and reducing risk. He also details the “Iceberg of Ignorance,” a concept used to encourage owners to engage their frontline staff to identify 100% of organisational problems and foster a better culture.
Finally, the discussion covers Kevin’s upcoming projects, including Exit Factor’s ambitious goal to open 30 offices across the UK within the next five years. He concludes by encouraging listeners to stop putting off the exit conversation and to seek an assessment early to ensure they have the freedom to exit on their own terms.
Exit Factor Website: exitfactor.co.uk/
Exit Factor’s Social Channels:
If you are interested in finding our more about preparing your business for an exit,
please get in touch with Kevin Harrington: Kevin’s LinkedIn Profile
Listen to the episode
Episode Time Codes
00:00 Welcome to Kevin
00:24 Kevin’s background
01:28 What is Exit Factor and how it helps business owners.
02:38 When should people think about preparing a business for an exit? (The answer may surprise you.)
06:03 Points that make a business appear ‘risky’ to potential buyers.
07:27 Good business practices for one-person businesses
09:11 How important are processes and data in contributing to the value of a business?
12:36 How to use data effectively
13:19 Get your team involved & Yoshida’s Iceberg of Ignorance
15:30 What aspects of exiting do business owners mainly struggle with?
20:47 Exit Factor’s typical client
22:33 How Kevin communicates information to potential clients
24:24 How the value of a business is calculated
28:21 Bring people with you on the journey and why cutting costs doesn’t work to grow a business
30:32 Why communication is the most important skill
32:45 Why Exit Factor chose Reading for their first UK office
34:29 Exit Factor’s plans going forwards
38:55 Kevin’s final thoughts and tips
Videos
What is Exit Factor?
How to Grow Your Business
Preparing Your Business for Exit
What Makes Your Business a Risk to Buyers?
How to Grow Your Business
Communicate with Your Team!
Key takeaways
Your Business is Your Pension—Treat It Like One
Most business owners view their company as their primary retirement fund, yet 80% of businesses fail to sell. To avoid retiring with a value “close to zero,” you must shift your mindset from daily survival to growing asset value. This involves moving away from suppressing profits to avoid tax and instead demonstrating a clean, consistent profit stream that a buyer can actually believe in.
De-risk to Drive Your “Multiplier”
The value of your business is determined by Profit multiplied by a Multiplier (V = P X M). While profit is important, the multiplier is a direct measure of risk. You can significantly increase your valuation simply by reducing risks.
Use Data to Uncover the “Iceberg of Ignorance”
Don’t manage by “gut feel” alone; measuring performance naturally leads to improvement. Harrington highlights that while a CEO might only see 4% of organisational problems, the frontline staff see 100%. By using data to identify which customers are actually profitable versus those that “consume the most support time,” and by involving your team in finding these solutions, you create a more efficient, “match-fit” business that is far more attractive to potential buyers.
References
Check out the Exit Insights Podcast
