The Exit Planning Gap: Why Most Businesses Fail to Sell - and How You Can Beat the Odds
- Jayne McQuillan
- May 6
- 3 min read
Every business owner will eventually leave their business—whether by selling, succession, or circumstance. Yet, only 20-30% of businesses that go to market successfully sell. For most owners, this isn’t just a statistic—it’s a wake-up call.
The number one reason businesses don’t sell? Lack of planning. Buyers aren’t just looking for revenue; they’re looking for a sustainable, transferable, and well-structured company. Without a clear succession plan, defined strategy, and financial readiness, many businesses never make it past the first conversation with a buyer.
At the 2025 State of M&A Conference last week, I led a session titled "Beyond the 30%: How Strategic Planning Unlocks a Successful Business Sale." We explored what business owners can do now to prepare for a future exit—and how advisors can guide them along the way. Below I’m sharing the same actionable roadmap I walked through at the event to maximize value, improve transferability, and prepare for a successful sale.
Why Most Businesses Fail to Sell
Many owners assume that when they’re ready to sell, a buyer will be there. But selling a business is not like selling real estate, it requires years of preparation. Buyers look for businesses that have:
Strong leadership beyond the owner – If the business can’t run without you, it won’t be attractive to buyers.
Sustainable and growing revenue streams – Predictable, diversified income sources increase valuation.
Documented systems and processes – A business without clear operations is a risky investment.
A clear strategic vision – Buyers want to see growth potential, not just past success.
Without these elements in place, deals fall apart, valuations drop, and owners are left with fewer options—sometimes forced into liquidation or a less-than-ideal exit.
The Path to a Successful Exit: It’s Just Good Business Strategy
In my book The Value Journey – How to Drive Profits, Build Wealth, and Exit Your Business on Your Own Terms, I outline the key steps to building a business that is both valuable and sellable. These steps aren’t just about preparing for a sale, they’re about running a great business.
1. Define Your Vision, Mission, and Values
A business without a clear purpose lacks direction. Owners who define their mission and values early on create a strong culture, which in turn attracts the right employees, customers, and ultimately, buyers.
2. Develop and Implement a Strong Business Strategy
Growth doesn’t happen by accident. A solid business strategy ensures:
A competitive advantage that differentiates you in the market.
Predictable, recurring revenue that builds business value.
A focus on scalability and sustainability, making your company attractive to buyers.
3. Execute with Accountability
Owners often spend years working in their business rather than on it. Successful exits require delegation and leadership development. Buyers want to see a team that can run the business without the owner, otherwise, the value leaves when you do.
4. Integrate Personal and Financial Planning
Your business exit is more than a transaction—it’s a transition. A lack of personal and financial readiness can derail a deal, forcing owners to accept lower offers or delay retirement. By working with wealth advisors early, you can structure an exit that supports both your financial security and your next chapter in life.
Why the Time to Start is Now
Most owners wait too long to prepare for an exit. The best time to start? Three to five years before you plan to sell.
This allows you to:
Improve your company’s valuation – Time to optimize operations and financials.
Address risks that could derail a sale – Fix weaknesses before buyers spot them.
Structure an exit that aligns with your personal and financial goals – Avoid last-minute decisions under pressure.
Whether you’re an owner looking to exit in the next few years or an advisor helping clients through this journey, the decisions made today will determine tomorrow’s outcomes.
Exit Planning Case Study: CB&A
Charlene was eager to further position herself and her business to achieve her goal of exiting CB&A in 2-3 years. She wanted to empower and train next-level leaders to take over more tasks and drive results in preparation for the transition.
After 2.5 years of focusing on her Value Journey, Charlene achieved:
128% Increase in Business Value
65% Revenue growth
45% EBITDA growth
Business SOLD for a 6.5x multiple
Jayne McQuillan, CPA, MBA, Certified Exit Planning Advisor (CEPA) is the owner of Journey Consulting, LLC and author of The Value Journey: How to Drive Profits, Build Wealth, and Exit Your Business on Your Own Terms.
Our firm is focused on providing business owners and their businesses with strategic planning, exit planning, financial expertise, and organizational improvement. We use a holistic approach within all of our services by aligning leadership with business strategy and outcomes.
