Exit Strategy Timeline: Realistic Valuation Goals for Pakistani Sellers
Exit Strategy Timeline: Realistic Valuation Goals for Pakistani Sellers
What is a realistic timeline and valuation expectation for a small to medium-sized enterprise (SME) seeking an exit in Pakistan within a 3-5 year period?
2 Answers
A realistic exit strategy for Pakistani business owners starts with setting a valuation timeline that matches market conditions and the companyβs actual performance. Most sellers benefit from planning 12β24 months in advance, giving them room to tidy financials, strengthen recurring revenue, and reduce operational weaknesses. A fair valuation usually comes from a mix of earnings, industry multiples, and buyer demand, so keeping expectations grounded and backed by clean data helps attract serious buyers and ensures a smoother, more profitable exit.
For an SME in Pakistan, a realistic exit timeline within a 3β5 year period typically involves 1β2 years of business stabilization and growth, followed by 6β12 months of structured sale preparation and buyer engagement. Valuation expectations are generally modest, with most SMEs achieving approximately 3Γβ6Γ EBITDA or 1.5Γβ3Γ revenue, depending on profitability, governance quality, growth consistency, and sector dynamics.