London Exit Calculator: Model Your UK Startup Exit Valuation
London remains Europe's dominant tech exit market despite Brexit disruption, with 2024 exit values totaling £18.4B across 342 transactions. UK exit valuations incorporate unique factors including Brexit regulatory changes, GBP currency volatility, cross-border acquirer dynamics, and London's position as gateway to European and US markets.
This comprehensive guide provides UK founders with actionable exit valuation frameworks, current market multiples adjusted for post-Brexit reality, and step-by-step calculations to model domestic UK vs cross-border US/European acquirer scenarios with currency considerations.
TL;DR: London Exit Valuation Quick Reference
UK SaaS Exit Multiples (2025): 8-12x ARR for B2B SaaS with international revenue >40%; 6-10x ARR for UK-only SaaS due to market size constraints and Brexit regulatory complexity.
Fintech Exits: 10-15x ARR for payments and banking infrastructure with regulatory licenses (FCA authorization premium); 6-10x ARR for consumer fintech without international expansion.
E-Commerce/DTC Exits: 1.5-3x revenue for UK-focused DTC brands; 3-5x revenue for brands with proven US/EU market traction and multi-currency operations.
Brexit Valuation Impact: UK-only companies face 15-25% valuation discount vs pre-Brexit levels; companies with US/EU revenue diversification maintain pre-Brexit multiple ranges.
Currency Considerations: GBP depreciation vs USD (1.27 GBP/USD in 2025) creates 20-25% valuation arbitrage for US acquirers vs 2016 pre-Brexit levels (1.48 GBP/USD).
Brexit's Impact on London Exit Valuations (2024-2025 Reality)
Brexit fundamentally reshaped UK tech exit dynamics through regulatory fragmentation, talent mobility restrictions, and market access complexity. Understanding post-Brexit valuation adjustments is critical for London founders planning exits.
Regulatory Fragmentation and Compliance Costs
Pre-Brexit (2016): UK companies accessed EU's 450M consumer market through single regulatory framework. SaaS companies achieved GDPR compliance once; fintech companies passported FCA authorization across EU.
Post-Brexit (2025): UK and EU operate separate regulatory regimes. Companies serving both markets require dual compliance infrastructure:
- Data Regulation: UK GDPR vs EU GDPR divergence creates compliance costs of £200K-500K annually for companies operating in both markets
- Financial Services: FCA authorization no longer passports to EU; fintech companies need separate EU entity and licensing (18-24 month process, £1-3M cost)
- E-Commerce: Separate VAT registration, customs compliance, and consumer protection rules for UK vs EU sales add 8-12% to operating costs
Valuation Impact: UK companies with 100% domestic revenue face 15-25% multiple compression vs pre-Brexit levels due to acquirer's cost to expand to EU markets. Companies already generating 30%+ revenue from EU/US face minimal Brexit discount.
Talent Mobility and Hiring Cost Increases
Pre-Brexit: London accessed EU talent pool freely with no visa requirements. Tech companies recruited engineers from Poland, France, Germany without immigration complexity.
Post-Brexit: EU workers require UK work visas (Skilled Worker visa: £1,500-3,000 per employee including sponsorship license). Tech hiring costs increased 15-20%; time-to-hire extended 4-6 weeks for EU candidates.
Valuation Impact: Acquirers discount UK-headquartered companies by 5-10% for higher ongoing hiring costs vs EU competitors. Mitigation: establish EU hub (Lisbon, Amsterdam, Berlin) for EU talent access.
Market Access and Revenue Diversification
Critical Valuation Factor: UK represents 3.5% of global GDP vs EU's 17%. UK-only companies face structural growth ceiling that limits exit multiples.
Geographic Revenue Mix Impact on Multiples:
- 100% UK revenue: 6-10x ARR multiples (market size constraint)
- 60% UK / 40% EU+US revenue: 8-12x ARR multiples (diversification premium)
- 40% UK / 60% international revenue: 10-15x ARR multiples (global company premium)
US and EU acquirers pay 20-35% premium for companies with proven non-UK revenue traction, as it de-risks international expansion post-acquisition.
GBP Currency Volatility and USD Exit Arbitrage
GBP/USD Exchange Rate History:
- Pre-Brexit (June 2016): 1.48 GBP/USD
- Post-Brexit Vote (July 2016): 1.32 GBP/USD (11% decline)
- Current (January 2025): 1.27 GBP/USD (14% below pre-Brexit levels)
Currency Arbitrage for US Acquirers: UK companies with GBP-denominated ARR are 14% cheaper for US acquirers in dollar terms vs 2016. This creates acquisition opportunity for US strategic buyers and PE firms with dollar-denominated funds.
Founder Currency Strategy: Negotiate deal terms in USD rather than GBP for exits to US acquirers. A £100M GBP exit ($127M USD at current rates) could be structured as $140M USD exit, capturing 10% additional value through currency negotiation.
London Exit Multiples by Sector (2025 Benchmarks)
Enterprise SaaS Exit Multiples
International B2B SaaS (40%+ Non-UK Revenue):
- ARR Multiple: 10-14x ARR for companies with strong US/EU traction
- Typical Exit Range: £100M-£800M acquisition value
- Recent Comps: Darktrace (£4.25B to Thoma Bravo at 8x revenue), Sage Intacct (£850M at 12x ARR), Blue Prism (£1.1B to Vista at 15x revenue)
- Key Drivers: US revenue >30%, EU entity established, multi-currency billing, net retention >110%
UK-Focused B2B SaaS (70%+ UK Revenue):
- ARR Multiple: 6-10x ARR with UK market size discount
- Typical Exit Range: £30M-£250M
- Recent Comps: IRIS Software (£1.3B to Hg at 9x revenue), Access Group (multiple PE recaps at 10-12x EBITDA)
- Key Drivers: Dominant UK market share (>30%), high switching costs, vertical SaaS with regulatory moats
Vertical SaaS (Industry-Specific Solutions):
- ARR Multiple: 8-12x ARR for UK+EU coverage; 12-16x ARR with US expansion
- Typical Exit Range: £50M-£400M
- Recent Comps: Fluidly (£8M to Barclays), Onfido (£100M to Entrust), Checkout.com (£32B valuation private)
- Key Drivers: Regulatory compliance automation, workflow criticality, 120%+ net retention
Fintech Exit Multiples
Payments and Banking Infrastructure (FCA Licensed):
- ARR Multiple: 12-18x ARR for companies with FCA e-money or banking license
- Typical Exit Range: £150M-£1.5B
- Recent Comps: Railsbank (£70M to Visa at 15x revenue), Modulr (acquired by Paysafe), ClearBank (£230M valuation private)
- Key Drivers: FCA regulatory license (£5-10M value), API-first infrastructure, embedded finance distribution
Wealth Management and Investment Platforms:
- AUM Multiple: 2-4% of AUM for profitable platforms; 8-12x revenue for B2B tech
- Typical Exit Range: £100M-£600M
- Recent Comps: Nutmeg (£700M to JPMorgan at 3% of AUM), PensionBee (£365M IPO at 12x revenue), Moneyfarm (€300M+ valuation)
- Key Drivers: FCA authorization, AUM growth rate >40% YoY, net new asset flows, <1.5% churn
Insurtech (UK and EU Operations):
- Revenue Multiple: 4-8x revenue for profitable underwriters; 1.5-3x GWP for pre-profitable
- Typical Exit Range: £100M-£800M
- Recent Comps: Bought By Many (£1.6B to Marshmallow), Zego (£1.1B valuation private), By Miles (£120M valuation)
- Key Drivers: Combined ratio <100%, loss ratio <65%, FCA and EU regulatory approvals, direct distribution
E-Commerce and Consumer Tech Exit Multiples
Direct-to-Consumer Brands (UK + International):
- Revenue Multiple: 2-4x revenue for profitable brands with US/EU expansion
- Typical Exit Range: £30M-£300M
- Recent Comps: Graze (£150M to Unilever at 3x revenue), Charlotte Tilbury (£1B to Puig at 5x revenue), Gymshark (£1B+ valuation private)
- Key Drivers: International revenue >40%, owned DTC channels >60% of sales, LTV/CAC >3.5, repeat rate >45%
Marketplace and Platform Commerce:
- GMV Multiple: 2-4x GMV for established UK marketplaces; 4-6x GMV with EU expansion
- Typical Exit Range: £80M-£600M
- Recent Comps: Depop (£1.1B to Etsy at 11x GMV), Farfetch (£3.5B IPO), Deliveroo (£7.6B IPO at 3x GMV)
- Key Drivers: Take rate >18%, cross-border GMV >30%, buyer repeat rate >50%, positive cohort economics
Step-by-Step London Exit Valuation Calculation
Step 1: Calculate Base ARR or Revenue in GBP
For Multi-Currency Companies: Convert all revenue to GBP using average FX rates over trailing 12 months. Don't use spot rates as they create volatility in ARR calculations.
Revenue Recognition for EU Sales Post-Brexit: EU revenue may have VAT and compliance deductions of 8-12%. Calculate net revenue after Brexit-related costs for accurate multiple application.
Example Calculation:
- UK Revenue: £15M GBP
- EU Revenue: €8M EUR (£6.8M at 1.175 EUR/GBP avg rate)
- US Revenue: $5M USD (£3.9M at 1.27 GBP/USD avg rate)
- Total ARR: £25.7M
Step 2: Determine Geographic Revenue Mix
Calculate percentage of revenue from UK, EU, and US markets. This determines your base multiple range and Brexit discount application.
Geographic Mix Valuation Framework:
- 100% UK Revenue: Apply UK-only multiples (6-10x ARR for SaaS). Add 15-25% Brexit market size discount.
- 60-70% UK Revenue: Use mid-range multiples (8-12x ARR). Apply 5-10% Brexit discount for EU access complexity.
- 40%+ International Revenue: Use international multiples (10-14x ARR). No Brexit discount - company has proven international execution.
Continued Example:
- UK Revenue: £15M (58% of total)
- EU Revenue: £6.8M (26% of total)
- US Revenue: £3.9M (15% of total)
- International Revenue: 42% - qualifies for international multiple range
Step 3: Select Acquirer Type and Base Multiple
US Acquirer (Strategic or PE):
- Values in USD, applies US market multiples
- Typical Multiple: 10-15x ARR for SaaS (US benchmarks)
- Currency advantage: pays in USD, captures GBP discount
- Integration costs: +£2-4M for establishing UK subsidiary post-acquisition
UK/European Acquirer:
- Values in GBP or EUR, applies UK/EU market multiples
- Typical Multiple: 8-12x ARR for SaaS (15-20% below US multiples)
- Integration advantage: lower post-merger integration costs (same time zone, closer geographic proximity)
- Synergy premium: +20% if acquirer has overlapping UK customer base
Continued Example (US Acquirer Path):
- Convert ARR to USD: £25.7M x 1.27 = $32.6M USD
- US SaaS Multiple Range: 10-14x ARR
- Company Profile: 42% international revenue, 90% YoY growth, 120% net retention
- Select 12x ARR (mid-range for growth profile)
- Base Valuation: $32.6M x 12 = $391M USD (£308M GBP)
Step 4: Apply Brexit and Regulatory Adjustments
Brexit Adjustment Framework:
No Brexit Discount (Add 0%):
- International revenue >40%
- EU entity already established
- Multi-currency billing operational
- Proven US market traction
Minimal Brexit Discount (Subtract 5-10%):
- UK revenue 60-70%
- Clear EU expansion plan
- Product ready for international markets (multi-language, currency)
Material Brexit Discount (Subtract 15-25%):
- UK revenue >80%
- No EU expansion capability
- Regulatory complexity for EU sales (fintech licensing, data localization)
- Product lacks internationalization
Regulatory Premium (Add 10-20%):
- FCA authorization for financial services (£5-10M standalone value)
- UK GDPR compliance infrastructure
- Vertical SaaS with regulatory compliance automation
Continued Example:
- Base Valuation: $391M USD
- International Revenue: 42% (no Brexit discount)
- No FCA license (no regulatory premium)
- Adjusted Valuation: $391M USD (no adjustment needed)
Step 5: Model Currency Negotiation Scenarios
Critical for US Acquirer Deals: Negotiate whether acquisition price is denominated in GBP or USD. This can swing founder proceeds by 10-15%.
GBP-Denominated Deal (Standard):
- Valuation: £308M GBP
- Founder receives payment in GBP
- Currency risk: If GBP depreciates further post-signing, founder loses value
USD-Denominated Deal (Negotiated):
- Valuation: $391M USD (locked)
- Founder receives USD payment (£308M at 1.27, or £326M if GBP weakens to 1.20)
- Currency protection: Founder captures any GBP depreciation post-signing
- Typical premium: Negotiate 5-10% higher USD valuation to lock USD terms
Best Practice: For deals with US acquirers, push for USD-denominated terms with 6-month closing period. If GBP depreciates 5-8% during closing (common volatility range), USD denomination protects £15-25M in founder proceeds on a £308M exit.
Step 6: Calculate Founder Proceeds Net of Preferences
UK VC Liquidation Preference Norms:
- Seed/Series A: 1x non-participating liquidation preferences (standard)
- Series B+: 1x participating up to 2x cap (common for £20M+ rounds)
- Growth Equity: 1x non-participating with anti-dilution protection
Continued Example:
- Exit Valuation: £308M GBP (or $391M USD)
- Series A: £3M at 1x non-participating preference
- Series B: £15M at 1x participating up to 2x cap
- Series C: £30M at 1x non-participating preference
- Liquidation Preference Waterfall:
- Series C receives £30M
- Series B receives £30M (1x preference + participation up to 2x = £15M + £15M)
- Series A receives £3M
- Total Preferences: £63M
- Remaining for Common: £308M - £63M = £245M
- Founder Ownership: 16%
- Founder Proceeds: £245M x 0.16 = £39.2M ($49.8M USD)
Cross-Border Exit Dynamics: US vs UK vs EU Acquirers
US Acquirer Advantages (Strategic or PE)
Why US Acquirers Dominate London Exits: 52% of London tech exits in 2024 went to US acquirers (up from 38% pre-Brexit), driven by currency arbitrage, higher multiples, and UK companies' US revenue traction.
US Acquirer Valuation Premiums:
- Pay 15-25% higher multiples than UK/EU acquirers
- Use USD-denominated offers, capturing GBP discount (14% cheaper vs 2016)
- Less sensitive to UK market size constraints if company has proven US revenue traction
- Faster decision cycles (6-9 months vs 9-12 months for UK/EU corporate buyers)
US Acquirer Integration Challenges:
- Time zone management (5-8 hour difference creates communication lag)
- UK employment law complexity (harder to restructure workforce vs US at-will employment)
- Post-acquisition entity structuring (UK subsidiary vs full integration)
- Customer concentration risk if 60%+ customers are UK-based
Optimize for US Acquirers By:
- Growing US revenue to 20-30% of total (proves US market product-market fit)
- Establishing US entity and sales presence 18 months before exit
- Hiring US-based executive (VP Sales, CRO) to signal US commitment
- Building case studies with US enterprise customers (Fortune 500 logos)
UK/European Acquirer Advantages
When UK/EU Acquirers Pay Premium Multiples:
- Market Consolidation: UK acquirer buying #2 or #3 competitor to achieve market dominance
- Regulatory Arbitrage: FCA-licensed fintech acquired by bank for faster regulatory compliance
- Customer Base Overlap: Acquirer serves same UK enterprise customers, enabling immediate upsell
- Brexit Mitigation: EU company acquiring UK company to establish post-Brexit UK market access
UK/EU Acquirer Valuation Approach:
- Conservative multiples (8-12x ARR vs US 10-15x ARR)
- Focus on profitability and EBITDA vs pure growth
- Integration synergies valued highly (20-30% premium for cost takeout opportunities)
- Longer decision cycles (9-15 months due to committee-based approval structures)
Deal Structure Differences by Acquirer Geography
US Acquirer Typical Structure:
- 80-100% cash at close
- 12-18 month founder retention with earnout (20-30% of total consideration)
- Retention bonuses for key technical talent (£200K-500K per engineer)
- Equity rollovers rare (except PE buyers)
UK Acquirer Typical Structure:
- 60-80% cash at close
- 20-30% in acquirer stock (if public company) or deferred cash
- 24-36 month founder retention expected
- Integration milestones tied to 20-40% of consideration
EU Acquirer Typical Structure:
- 50-70% cash at close
- 30-40% earnout over 3-4 years tied to revenue and EBITDA targets
- Founder expected to stay as GM of UK business unit for 3-5 years
- Heavy use of deferred consideration vs upfront cash
Maximizing Your London Exit Valuation: Post-Brexit Playbook
Strategy 1: Build International Revenue 18-24 Months Before Exit
Target: Achieve 30-40% non-UK revenue before entering exit process. This eliminates Brexit market size discount and opens US acquirer market.
Implementation Timeline:
- 24 months before exit: Establish US entity (Delaware C-Corp) and hire US VP Sales
- 18 months before exit: Close first 3-5 US enterprise customers to prove product-market fit
- 12 months before exit: US revenue should reach 15-20% of total; EU entity established (Ireland for fintech, Netherlands for e-commerce)
- 6 months before exit: International revenue 30-40% of total; use this as core positioning in acquirer conversations
Strategy 2: Optimize Currency Risk in Deal Negotiation
Tactic for US Acquirer Deals: Push for USD-denominated purchase price rather than GBP to protect against currency depreciation during 6-9 month closing period.
Negotiation Approach:
- Propose USD denomination in LOI stage ("Given company's 40% USD revenue, USD valuation creates natural hedge")
- Offer to accept 5% lower USD valuation in exchange for currency certainty
- Compromise: Use collar structure (GBP/USD exchange rate fixed within 5% band)
Financial Impact: On £300M exit with 8-month closing period, GBP depreciation of 6% (common volatility) = £18M founder loss if deal priced in GBP. USD denomination or collar protects this downside.
Strategy 3: Leverage FCA Regulatory Licensing as Valuation Premium
For Fintech Companies: FCA e-money license or banking authorization adds £5-10M standalone value to exit, even for companies with minimal revenue. Time to obtain FCA authorization: 18-24 months.
Licensing Strategy:
- Apply for FCA authorization 24 months before exit (even if not immediately needed for business model)
- Maintain active license status (process at least minimal transaction volume monthly)
- Obtain PSD2 and Open Banking certifications to maximize regulatory value
- Position license as acquirer's "fast track" to UK financial services market
Strategy 4: Create Competitive Tension With US and UK Buyer Tracks
Dual-Track Process: Run parallel processes with 2-3 US acquirers and 2-3 UK/EU acquirers. Use US offers (typically 20% higher) to pressure UK acquirers on valuation.
Timing Coordination:
- Initiate US acquirer conversations 2-3 months before UK acquirer outreach (US deals move faster)
- Use US term sheet to create urgency with UK strategic buyers
- Leverage UK offers to improve US deal terms (less earnout, higher cash at close)
Common London Exit Valuation Mistakes
Mistake 1: Failing to Account for Brexit Market Size Discount
Problem: UK-only SaaS companies assume 10-15x ARR exit multiples (US benchmarks) but receive 6-10x offers due to 68M UK market vs 330M US market size constraints.
Solution: Build international revenue to 30%+ of total before exit process. Every 10% increase in non-UK revenue adds 1-2x to exit multiple by eliminating market size discount.
Mistake 2: Ignoring GBP/USD Currency Risk in US Acquirer Deals
Problem: Accept GBP-denominated offer from US acquirer; GBP depreciates 8% during 8-month closing, wiping out £24M in founder proceeds on £300M exit.
Solution: Always negotiate USD-denominated pricing with US acquirers or use exchange rate collar to cap downside. Historical GBP volatility: 5-10% over 6-9 month M&A closing periods.
Mistake 3: Undervaluing FCA Regulatory Licenses
Problem: Fintech company skips FCA authorization application to save £500K-1M in compliance costs; foregoes £5-10M valuation premium in exit.
Solution: Obtain FCA e-money or banking license 24 months before exit even if not immediately required. License represents 18-24 months of time advantage for acquirers entering UK market, worth £5-10M standalone.
Mistake 4: Overestimating UK Corporate Acquirer Valuations
Problem: UK founders expect US-level multiples from UK acquirers; UK strategic buyers typically pay 15-25% below US comps due to lower equity market valuations and conservative M&A practices.
Solution: Use UK acquirer offers as baseline; run parallel US acquirer process to capture 20-30% premium. 52% of 2024 London exits went to US buyers for this reason.
London Exit Calculator: Ready-to-Use Valuation Framework
Step-by-Step Exit Valuation Calculator
Step 1: Calculate total ARR or revenue in GBP: £________ M
Step 2: Determine geographic revenue mix:
- UK Revenue: ______%
- EU Revenue: ______%
- US Revenue: ______%
Step 3: Select acquirer type and base multiple:
US Acquirer (Strategic):
- Convert ARR to USD (multiply GBP by 1.27)
- Base Multiple: 10-15x ARR for SaaS, 8-12x for fintech, 2-4x for e-commerce
UK/EU Acquirer:
- Keep ARR in GBP
- Base Multiple: 8-12x ARR for SaaS, 6-10x for fintech, 1.5-3x for e-commerce
Step 4: Apply Brexit adjustment:
- International revenue >40%: No Brexit discount
- UK revenue 60-70%: Subtract 5-10% from valuation
- UK revenue >80%: Subtract 15-25% from valuation
Step 5: Add regulatory premium:
- FCA authorization: Add £5-10M to valuation
- EU entity established: Add 5-10% to valuation
- Multi-currency operations: Add 3-5% to valuation
Step 6: Calculate final exit valuation:
Exit Valuation = (ARR x Base Multiple x (1 - Brexit Discount %)) + Regulatory Premium
Step 7: Model founder proceeds:
Founder Proceeds = (Exit Valuation - Liquidation Preferences) x Founder Ownership %
Step 8: Adjust for currency if US acquirer:
- GBP-denominated: No adjustment
- USD-denominated: Protect against 5-10% GBP depreciation during closing
Resources and Tools for London Exit Planning
UK-Specific Exit Resources
Brexit and Regulatory Resources
London M&A Advisory Firms
- Tech-Focused M&A: GP Bullhound, Houlihan Lokey TMT, DC Advisory, Magenta Partners
- Fintech-Specialized: FT Partners (UK team), Finch Capital, Oaklins
- Cross-Border M&A: Lazard, Rothschild, Evercore (London offices with US connectivity)
Frequently Asked Questions: London Exit Valuations
How has Brexit impacted London startup exit valuations?
Brexit has created 15-25% valuation discount for UK-only companies due to market size constraints (68M UK population vs 450M EU) and regulatory complexity for EU expansion. However, London companies with 30%+ international revenue face minimal Brexit impact and command multiples comparable to pre-Brexit levels. Post-Brexit reality: 52% of London exits now go to US acquirers (up from 38% pre-Brexit) due to GBP currency arbitrage and higher US multiples. UK SaaS companies with proven US market traction (20%+ US revenue) eliminate Brexit discount entirely.
Should I negotiate my exit price in GBP or USD with US acquirers?
Always push for USD-denominated pricing with US acquirers to protect against GBP depreciation during 6-9 month closing period. GBP has depreciated 14% vs USD since Brexit vote (June 2016), with typical volatility of 5-10% over M&A closing periods. On a £300M exit, 8% GBP depreciation during closing wipes out £24M in founder proceeds if priced in GBP. Negotiate USD denomination in LOI stage or use exchange rate collar to cap currency risk. Willing to accept 5% lower USD valuation in exchange for currency certainty is economically rational given historical GBP volatility.
What exit multiples should UK SaaS companies expect vs US peers?
UK SaaS companies with 100% UK revenue receive 8-12x ARR exit multiples, approximately 20-30% below US peer multiples (10-15x ARR) due to market size constraints. However, UK SaaS with 40%+ international revenue (US + EU) command 10-14x ARR, nearly eliminating the discount. To maximize valuation, grow non-UK revenue to 30-40% before exit and target US acquirers who pay 15-25% premium vs UK buyers. FCA-licensed fintech SaaS commands additional £5-10M regulatory premium on top of revenue multiples.
How valuable is FCA authorization in a fintech exit?
FCA e-money license or banking authorization adds £5-10M standalone value to fintech exits, representing 18-24 months of time advantage for acquirers entering UK financial services market. FCA authorization application takes 18-24 months and costs £500K-1M in compliance and legal fees, but unlocks premium valuations from banks, payment companies, and US fintech acquirers needing UK market access. Apply for FCA license 24 months before planned exit even if not immediately required for business operations. Maintain active license status by processing minimal monthly transaction volume to preserve authorization.
Do US or UK acquirers pay higher valuations for London startups?
US acquirers pay 15-25% higher valuations than UK/EU acquirers for London startups with international growth potential. US strategic and PE buyers use US benchmark multiples (10-15x ARR for SaaS) vs UK buyers' more conservative multiples (8-12x ARR). Additionally, GBP depreciation creates 14% currency arbitrage for US dollar-denominated acquirers vs pre-Brexit levels. However, UK acquirers pay premium multiples for market consolidation plays (acquiring direct competitors) or companies with deep UK enterprise customer integration. Best practice: run dual-track process with 2-3 US and 2-3 UK acquirers to create competitive tension.
Next Steps: Plan Your London Exit Strategy
Successful London exits require 18-24 months of strategic positioning to overcome Brexit headwinds and maximize international acquirer interest. Focus on building non-UK revenue, optimizing for US acquirer fit, and securing regulatory advantages that command premium valuations.
Immediate action items:
- Calculate your exit valuation in both GBP (for UK acquirers) and USD (for US acquirers) using frameworks above
- Audit geographic revenue mix: if UK revenue >70%, prioritize international expansion to eliminate Brexit discount
- For fintech companies: apply for FCA authorization 24 months before exit to capture £5-10M regulatory premium
- Establish US entity and hire US-based sales leader 18-24 months before exit to prove US market traction
- Identify 2-3 US and 2-3 UK strategic acquirers; begin relationship building 18 months before exit window
- Model currency risk scenarios: negotiate USD-denominated pricing or exchange rate collars for US acquirer deals
Ready to model your London exit scenarios? Use the ICanPitch Exit Calculator to compare UK vs US acquirer valuations, apply Brexit adjustments, model currency scenarios, and calculate founder proceeds net of liquidation preferences with London-specific multiples.
