Building Better Business Exits: Luke Tobin on Transforming Business Legacies

Luke Tobin’s mission revolves around helping service business and agency owners achieve successful exits whilst preserving their legacy and wellbeing. As the founder of a specialised exit coaching practice and Tobin Capital, he believes that selling a business goes beyond just the financial transaction – it’s about ensuring founders can transition confidently into their next chapter.

In this article, Luke shares his perspective on transforming business exits and why strategic guidance matters for service business owners.

Please tell us about your focus on exit coaching 

My passion lies in helping service business and agency owners transform their successful ventures into meaningful exits. Having personally built and sold multiple businesses, including Digital Ethos which expanded internationally before being acquired by Cadastra, I’ve experienced firsthand the unique challenges of scaling and selling service businesses. This journey led me to develop a comprehensive approach to exit planning that addresses both the strategic and personal aspects of business transitions.

You’re also involved in venture capital through Tobin Capital? 

Yes, I established Tobin Capital to revamp the traditional venture capital approach. We recently partnered with A-Frame Venture Studio (AFVS) in San Diego, USA, joining forces with Bradley Harris and Amber Brandner. Both firms share a commitment to building impact for founders and the planet. I’ve joined AFVS as a principal and investor, and our businesses collaborate to serve founders on both sides of the Atlantic. This venture capital experience gives me unique insights into what buyers look for and how to structure deals effectively.

What common challenges do service business owners face when planning their exits? 

Most exit strategies overlook the unique challenges that service-based companies face. There’s often an over-dependence on the founder, complex client relationship transitions to manage, and team retention concerns throughout the sale process. Additionally, traditional valuation methods frequently undervalue service businesses. Up to 80% of businesses never successfully sell, and the stakes are particularly high for service and agency businesses. My role is to help owners as The Agency Coach, navigate these challenges strategically.

How does your approach differ from traditional exit consulting? 

I focus on the complete picture – not just the numbers, but the legacy, team security, and the owner’s next chapter. We work to address the specific challenges of service-based businesses, from reducing founder dependency to maintaining team morale during transitions. Having built and sold my own agency, I understand the unique dynamics of service businesses and how to position them for successful exits.

What specific guidance do you provide to business owners? 

We start by addressing key questions like timing, value maximisation, and identifying the right buyers. Through our Exit Accelerator programme, we provide structured support covering everything from operational improvements to personal transition planning. I’ve helped support client exits valued up to £50M, drawing from deep expertise across various business models and industries, with a particular focus on service businesses and agencies.

How do you help owners maintain work-life balance during the exit process? 

Exit planning can be incredibly demanding, and burnout is a real risk, especially for service business owners who are often deeply embedded in client relationships and day-to-day operations. We build sustainable exit strategies that allow owners to maintain their wellbeing throughout the process. This includes creating robust systems, developing strong leadership teams, and ensuring the business isn’t overly dependent on the owner’s daily involvement.

What advice would you give to business owners thinking about an exit? 

Start planning earlier than you think you need to. Many service business owners wait until they’re burning out or facing challenges before considering an exit strategy. Being proactive allows you to build more value, reduce stress, and create better outcomes for everyone involved – including your team and clients. It’s particularly crucial for agency owners to begin reducing their personal involvement in client relationships well before a planned exit.

Looking ahead, how do you see the landscape of business exits evolving? 

The future of business exits is becoming more holistic. Buyers are increasingly focused on sustainable business models with strong teams and systems in place. This means owners need to think beyond just financial metrics and build businesses that can thrive beyond their involvement. This is especially true in the service business sector, where buyer scrutiny of team stability and client retention is intensifying.

What market dynamics are you seeing in the business exit landscape? 

We’re currently witnessing one of the largest transfers of wealth in history. The baby boomer generation, who own a significant portion of private businesses, are reaching retirement age and looking to exit. This represents a £10 trillion opportunity globally. What’s particularly interesting is that this creates opportunities on both sides – for sellers looking to exit and preserve their legacy, and for ambitious entrepreneurs looking to acquire established businesses. To help potential buyers navigate this opportunity, I’ve created a free resource: “50 Boring Businesses to Invest in or Start” – these are the types of stable, profitable businesses that often form the backbone of our economy and represent excellent acquisition opportunities in this market.

For service business owners specifically, this timing is crucial. There’s a growing pool of buyers looking for well-structured service businesses with reliable revenue streams and strong teams. There has genuinely never been a better time to be on either side of a business transaction. However, this also means competition is increasing, and the businesses that are well-prepared and properly structured for exit will be the ones that attract the best buyers and command premium valuations.

Your next cohort starts soon. What can participants expect? 

Our next Exit Accelerator cohort begins 4 April 2025. Participants will receive comprehensive support in building their exit strategy, from maximising business value to planning their personal transition. We focus on practical implementation, peer support, and proven frameworks that have helped generate over £20M in successful exits. The programme is specifically tailored for service business and agency owners, addressing their unique challenges and opportunities.

How can business owners get started with exit planning? 

For service business owners considering their exit journey, we offer multiple ways to engage. Through our advisory services at luketobin.com, we provide personalised exit planning and scaling strategies tailored specifically for service-based businesses and agencies. Whether you’re actively planning an exit or just starting to think about your long-term options, we can help you build a clear roadmap. We focus on addressing the unique challenges of service businesses, from reducing owner dependency to maximising valuation multiples. Our proven frameworks have helped numerous owners successfully scale and exit their businesses, while maintaining their wellbeing throughout the process.