Exit planning is not about an exit date. It’s about seeking to build business that someone else would actually want to buy.

The reality is stark: approximately 80% of businesses never sell, and nearly 50% of exits happen involuntarily due to the 5 D’s—Death, Disability, Divorce, Disagreement, and Distress.

 

One of the primary reasons businesses don’t sell is simple: They are too dependent on the owner.

If the owner is the rainmaker, the decision-maker, the problem-solver, and the relationship holder, what they’ve potentially built is a high-paying job—not a transferable business.

And you cannot sell a job.

Buyers typically look for systems, processes, predictable cash flow, and continuity. They often prefer businesses that run without the owner being involved in every decision.

Exit planning seeks to address this head-on by:

  • Aiming to institutionalize systems and processes
  • Helping to reduce owner dependency
  • Guiding the development of leadership and succession
  • Working toward documented, repeatable operations
  • Seeking to strengthen financial and operational resilience

When implemented appropriately exit planning seeks to strengthen the business long before any exit occurs. It aims to increase value, improves profitability, and is intended to help the company can survive both planned and unplanned transitions.

This is exactly why structured methodologies—like the Value Acceleration Methodology developed by the Exit Planning Institute—focus first on building value potential not selling the business.

Exit planning isn’t about walking away.It’s about ensuring that when the time comes—whether by choice or by circumstance—you have options.

Because the goal isn’t to own a business that terminates with you.The goal is to own a business that can potentially work without you.

If your business can’t operate without you, its value may be re fragile than you think.

Exit planning isn’t about selling—it’s about building a strategy for systems leadership, and value so your business can pursue growth or without you at the helm.

Schedule a no-obligation 5-minute exit planning strategy session to evaluate how transferable your business is.

Discover how a structured approach may help you create meaningful options.

 

Source: ¹ Snider, Christopher M. Walking to Destiny: 11 Actions an Owner Must Take to

Rapidly Grow Value & Unlock Wealth. Exit Planning Institute, 2016.

(credible sources for the commonly cited statistic that 70 – 80 % (or more) of businesses never sell, along with additional related data:

🔎 Exit Planning Institute (EPI) / State of Owner Readiness

  • According to research from the Exit Planning Institute’s State of Owner Readiness report, only 20 – 30 % of businesses that go to market actually sell, meaning up to 70 – 80 % never complete a sale.
  • This 20–30 % success rate is frequently cited as the basis for the 70–80 % failure-to-sell figure in exit-planning discussions.

🧠 Forbes / Industry Commentary

  • A Forbes article references the EPI State of Owner Readiness research, noting that between 70 % and 80 % of small businesses never sell because owners are unprepared for a market exit.

📊 Industry Sources / Small Business Brokers

  • Tom West (Business Brokerage Press) — widely quoted in the business-broker community — estimates only about 25 % of small businesses ultimately sell.
  • Other small business sale resources also observe that 70 – 80 % of businesses listed for sale do not successfully transact.

📈 Additional Supporting Mentions

  • Many business planning blogs and industry discussions repeat the EPI figure, stating that 70–80 % of businesses listed for sale never find a buyer unless exit planning is done years ahead of time.
  • Some industry commentators even cite 80–90 % non-sale rates for certain business segments — although these are less standardized than EPI’s findings.

📌 So who uses this statistic?

Primary source: ✅ Exit Planning Institute (EPI) — their State of Owner Readiness research is the most widely referenced base for the “70–80 % don’t sell” claim.

Also cited by:

  • Forbes (referencing EPI data).
  • Business brokerage sources citing Tom West’s sales statistics showing low sale rates for small businesses.
  • Industry blogs and advisor publications summarizing these exit planning statistics.

Primary Source: Exit Planning Institute (EPI)

✔ Exit Planning Institute / State of Owner Readiness

  • EPI’s State of Owner Readiness survey and related exit planning content are the basis for this statistic. According to EPI, about 50 % of business owner exits are not voluntary but instead forced by unexpected life or business events — the “5 D’s” — meaning owners are not exiting on their own timing or terms.

✔ Exit Planning Institute (Industry Commentary)

  • Multiple industry commentators and advisors citing EPI content explain that roughly 50 % of all business exits are involuntary and forced by dramatic external events — the very events EPI defines as the 5 D’s.

📚 Independent Business Advisory Sources Referencing the Same Stat

These don’t come directly from EPI but corroborate the same general statistic (often citing EPI or similar exit planning research):

✔ CPA & Advisor Content

Investment advisory and financial planning services are offered through Simplicity Wealth, LLC, an SEC-registered investment adviser. SEC registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. Investing involves the risk of loss. Insurance, Consulting and Education services offered through Heart Financial Group. Heart Financial Group is a separate and unaffiliated entity from Simplicity Wealth. This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.