Why nearly half of U.S. Business Owners lack an Exit Plan — and what that means for you

A surprising percentage of business owners are entering the window where an exit is imminent — yet many lack formal plans. That mismatch creates a risk to value, legacy, and future finances. The Exit Planning Institute’s national research shows widespread awareness but uneven readiness: a substantial share of owners still don’t have formal transition plans.

The data that demands attention

The Exit Planning Institute reports that a sizable portion of owners remain unprepared for transition — with only around four in ten (≈42%) having a formal business transition plan in place, despite many expecting to exit in a near timeframe.
Demographically, a large cohort of owner-operators are approaching traditional retirement ages, increasing the urgency of exit readiness. News coverage highlights that a meaningful percent of small-business owners are over 55 — a trigger for more imminent transitions.

The cost of waiting (Real-World Consequences)

Lower realized value: Unprepared businesses typically fetch lower multiples because buyers discount for risk and poor documentation.

Forced or distressed exits: Owners who wait often face fewer buyer options and worse terms, sometimes selling under pressure.

Personal finance gaps: Without integrated personal financial planning, owners risk a “wealth gap” after sale — where sale proceeds don’t meet retirement goals.

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A practical 3–5 year roadmap to readiness

Start early (3–5 years out): conduct valuations, close operational gaps, and align personal financial goals with a transition timeline.
Assemble a transition team: legal, tax, accounting, operations, and an exit advisor working together.
Value acceleration work: improve recurring revenue, reduce key-person dependencies, and strengthen documentation.
Explore exit paths: sale to PE/strategic buyer, internal transfer, ESOP/employee ownership, family succession — each has tradeoffs.

"The No. 1 reason private business sales fail—or fall short—is a lack of planning on the seller’s part…Most business owners spend more time planning a family vacation than thinking about when and how to exit their business." - Adam Quarello, C-Suite Quarterly, If You Own a Business, You Need an Exit-Planning Team

How EdgeMark supports Owner Readiness

We perform pre-transaction readiness audits, build prescriptive value-acceleration plans, coordinate the transition team, and coach owners through personal finance alignment so they exit on their terms — not on someone else’s timetable.

Exit planning is a growth and risk management tool, not an afterthought. Starting early preserves value, expands options, and gives owners control over legacy outcomes.