Are You Ready to Exit Your Business?

The Exit Planning Institute recently published its 2025 State of Owner Readiness Report,1 which assesses how exit planning varies across different generations. We’ve worked extensively with business owners of all ages, and as relatively young business owners ourselves, we’ve witnessed how approaches and preparedness are evolving. 

Over the next 20 years, older generations will pass trillions of dollars on to younger generations, an event known as the Great Wealth Transfer.2 As baby boomers approach retirement, planning is increasingly crucial, since their exit may shape the financial security and legacy of their business and heirs. Let’s review some of the key data points and share how you can prepare for a successful exit, no matter your generation.

Key Findings from the Exit Planning Institute 2025 State of Owner Readiness Report

The report highlights a gap in how older and younger generations view the importance of exit planning (excluding Gen Z and business owners older than 77). There’s an apparent opportunity for proactive planning and education among the baby boomer generation, in particular. The data reveals less education surrounding exit planning, more of a reliance on a successful business sale, and they are the least ready on both a personal and financial level to exit.

• Percentage of business owners who view exit planning as a top priority:
  • 52% of millennials (ages 29–44 in 2025)
  • 36% of Generation X (ages 45–60 in 2025)
  • 14% of baby boomers (ages 61–79 in 2025)
• Percentage of business owners who have not completed a pre-transition value enhancement to maximize value before exiting (i.e., understand how much they need from a sale to fund their next chapter):
  • 78% of baby boomers
  • 38% of Generation X 
  • 16% of millennials
• Percentage of business owners with formal exit planning education (i.e., understand the three-legged stool principles and all exit options):
  • 72% of baby boomers
  • 70% of Generation X 
  • 85% of millennials
• Percentage of business owners who must harvest the value of their business (i.e., use the sale to fund their next chapter):
  • 71% of baby boomers
  • 66% of Generation X 
  • 48% of millennials
• Percentage of business owners who have a formal personal plan linked to their finances for life after business:
  • 13% of baby boomers
  • 43% of Generation X 
  • 56% of millennials
• Percentage of business owners who do not know what they want to do after exiting:
  • 19% of baby boomers
  • 11% of Generation X 
  • 5% of millennials

Why a Successful Business Exit Matters

While the data reveals how the perception of retirement varies across generations, only 13% of all of the report’s respondents have a formal exit plan.1 Since not every business sale is successful, and some exits are involuntary due to external factors or events, business owners shouldn’t leave their exit to chance. A successful exit contributes to personal financial independence in your next chapter. Without proper planning, you may risk:

• Not maximizing the final sale price of your business: Business owners should consider strategies to maximize transferable value through strong management, financials, and tax planning opportunities, all of which impact the sale.
• Succession and family conflicts: Without a clear plan, confusion or conflict may arise among internal leaders and family members who have assumed they are next in line. A professional business exit team can help ensure these bases are covered and everyone’s aware of your wishes.
• Financial insecurity post-exit: According to the report, between 80% and 90% of a business owner’s net worth is tied up in their business.1 Failing to plan and select the appropriate business sale structure that provides sustained cash flow and tax efficiency can impact your retirement, lifestyle, and financial goals.

How to Prepare for Your Business Exit, No Matter Your Generation

No matter where you are in your business ownership journey, here are some of the steps you can take to increase the value of your business and make it more attractive to potential buyers:

Start Planning Now

• Determine the type of buyer you prefer. A strategic, financial, or internal buyer will imply a different price point and approach to operating the business. 
• Assemble a professional team, including attorneys, financial advisors, and accountants, to help you plan your exit and seal the deal. 
• Build your strategy based on the buyer type you choose and what they value most.

Prepare Your Business

• Conduct a business valuation to determine how much your company is worth and if you need to make adjustments to maximize its value before going to market.
• Protect and build business value by reducing personal, financial, and business risks, and increasing your cash flow (EBITDA) and/or improving your multiple. Your multiple is the number assigned by private capital markets to value your tangible and intangible assets, along with associated business risks. Improvements to your intangible assets (such as human, structural, customer, and social capital) are often where the greatest increases in building value can occur.  
• Ensure your financials are audited and accurate to make them more attractive to potential buyers. 

Prepare for Life After Exiting

• Envision your next chapter, focusing on how and with whom you’ll spend your time, if you want to give back to the community, and how you’ll manage your health and well-being.
• Consider how you’ll find purpose outside of business ownership, focusing on building new routines, skills, community, and social connections. 
• Ensure your personal financial readiness before exiting, addressing key areas such as income requirements, risk management, cash flow planning, gifting, long-term healthcare, and estate planning in retirement.

Planning for a Successful Exit: How CCMI Helps

Whether you’re five years away from your exit or decades, planning helps ensure you have plenty of options and security when the time comes. We often support business owners planning for life after business, helping ensure their goals and finances align to provide them with the future they want and deserve. In addition to the benefits of partnering with a financial advisor, a Certified Exit Planning Advisor (CEPA) — a certification that CCMI’s Principal and Owner Brian Matter holds — brings specialized expertise and tools to the table, focusing on helping business owners maximize value, minimize taxes, and navigate the transition from owner to retiree. 

Whether you’re ready to start planning or wondering when it’s the right time to exit your business, we’re here to guide you through your questions and concerns to help ensure you’re more informed and prepared to make your transition. Contact our team today.

Sources:

1. Exit Planning Institute. State of Owner Readiness. https://exit-planning-institute.org/state-of-owner-readiness
2. Coughlin, J. (2024, June 24). The Great Wealth Transfer Is Happening But Not In The Way You Think. Forbes. https://www.forbes.com/sites/josephcoughlin/2024/06/26/the-great-wealth-transfer-is-happening-but-not-in-the-way-you-think/