Why Exit Planning Matters Now More Than Ever

Brianna Johnson
4 days ago
3 min read

If you’re a business owner, here’s a sobering fact: the day will come when you’ll leave your business voluntarily or not. Yet most owners spend more time planning a vacation than planning how to exit the company they spent years building.

In today’s shifting economy, failing to plan can cost you millions, your legacy, and your peace of mind. Here’s why exit planning is more critical than ever and what you can do to get ahead of it.

Most Owners Are Still Unprepared

According to the Exit Planning Institute (EPI), 76% of business owners plan to transition in the next 10 years, but over 70% don’t have a written exit plan (EPI National State of Owner Readiness Report). Worse yet, many exits happen under duress, due to burnout, illness, or economic downturns often at a fraction of the business’s true value.

What’s Driving the Urgency?

Baby Boomer Wave: Baby boomers own nearly half of privately held businesses in the U.S. As they retire, trillions in business assets will change hands.

Market Uncertainty: Rising interest rates, supply chain hiccups, and economic volatility mean fewer qualified buyers and more cautious lenders.

Sophisticated Buyers: Today’s private equity firms and strategic buyers expect clean books, strong management teams, and low owner dependence. Companies that don’t meet these standards get overlooked or undervalued.

Benefits of Proactive Exit Planning

Increase Business Value: A documented plan gives you time to fix weaknesses, diversify revenue, boost profitability, and strengthen leadership, making your company more attractive and commanding a higher multiple.

Protect Against Surprises: Life happens. Health issues, partnership disputes, or sudden market shifts can force a sale at the worst time. A plan puts you in control, not circumstance.

Secure Your Legacy: Many owners want to reward loyal employees, support their communities, or keep the business in the family. A good plan aligns your exit with your values and goals.

When Should You Start?

Yesterday. The best exit plans start 3–5 years before you’re ready to step away. This gives you time to optimize financials, develop successors, and make your business less dependent on you, one of the biggest value killers in small businesses.

How to Get Started

Get a Business Valuation: You can’t plan where you’re going if you don’t know where you stand.
Work with Advisors: An experienced exit planner, CPA, attorney, and M&A advisor can help you build a realistic timeline and roadmap.
Talk to Your Family & Partners: Make sure everyone’s on the same page about your goals.
Document Your Plan: A plan in your head is just a wish. Put it in writing and review it regularly.

Exit planning isn’t just about leaving your business it’s about building a company that’s valuable, transferable, and ready for whatever comes next. With the right plan, you can leave on your terms and protect the legacy you’ve worked so hard to build.

Start planning today, your future self will thank you.

Take a Closer Look at the St. Louis EPI Chapter

If you’re serious about exit planning, the St. Louis chapter of the Exit Planning Institute (EPI) is a valuable resource right in your backyard. It brings together top local advisors, owners, and thought leaders who understand the unique challenges and opportunities facing business owners in our region.