An exit planning strategy is essential for business owners who want to protect what they’ve built to secure their financial future, and stay in control of how—and when—they transition out of their business.

Whether the goal is a third-party sale, a family or management transition, or an orderly wind-down, a well-designed exit plan helps maximize value, minimize disruption, and align business decisions with long-term personal and financial goals.

The reality is sobering. Approximately 80% of businesses never sell. Even more concerning, nearly 50% of business exits happen involuntarily—triggered by events outside the owner’s control. **

The Exit Planning Institute identifies these as the “5 D’s”: Death. Disability. Divorce. Disagreement. And Distress.

This is not theoretical for me. It’s personal.

My father owned a jewelry store and passed away unexpectedly after drowning. He did not have an exit plan. As a result, our family was forced to sell the inventory for pennies on the dollar simply to care for my stepmother. The business he spent years building couldn’t be transitioned thoughtfully or strategically—because the planning was never done.

That experience shaped everything I do today.

Exit planning is not about leaving tomorrow. It’s about building a stronger, more valuable business today. When owners plan early, they create options instead of urgency. They gain the ability to increase enterprise value, help reduce tax exposure, improve operational efficiency, and protect their family and employees from the potential consequences of an involuntary exit.

And the results are measurable. Clients of my strategic partner in this space saw an average 65% increase in profits and a 43% increase in revenue last year—while simultaneously getting their businesses into a true state of exit readiness. Exit planning, when done correctly, accelerates value long before an owner ever intends to leave.

(John, this is according to my partner Cultivate Advisors: https://cultivateadvisors.com/

They state these stats on the home page.

Beyond the financial upside, a structured exit plan strengthens the business itself. It reduces owner dependency, develops successors, institutionalizes key relationships, and builds resilience—so the company can withstand unexpected events and thrive beyond the owner.

One of the most effective frameworks for achieving this is the Value Acceleration Methodology, developed by the Exit Planning Institute. This methodology aligns business, personal, and financial planning to systematically increase enterprise value—while preparing owners for both voluntary and involuntary exit scenarios.

Exit planning isn’t about an endpoint.It’s about protecting your family, your legacy, and the value of everything you’ve worked so hard to build—before life forces a decision for you.

If you’re a business owner, the question isn’t if one of the 5 Ds could affect you—it’s when.

Don’t wait for a crisis to force decisions you never wanted to make.

Schedule a complimentary 15-minute strategy session to evaluate your current exit readiness, identify hidden risks, and explore opportunities to protect your family, your employees, and the value of your business.

Together, we’ll determine where you stand today—and what steps you can take now to stay in control, no matter what life brings.

** Sources**

Source: ¹ Snider, Christopher M. Walking to Destiny: 11 Actions an Owner Must Take to Rapidly Grow Value & Unlock Wealth. Exit Planning Institute, 2016

Source: https://cultivateadvisors.com/

(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:<br>✅ 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

  • Some professional advisory firms (e.g., Delap CPA, Kramer Financial, CCMI) explain that roughly 50 % of business exits are involuntary, attributing this to sudden life or business events (death, disability, divorce, disagreement, distress).

✔ Business Exit Planning Firms

  • Independent exit-planning content from strategic advisory firms also references the idea that over half of business exits result from unplanned, forced circumstances. While not always sourced directly to EPI’s data set, these posts align with the same concept.

📊 What “Involuntary Exit” Means in This Context

When sources say ~50 % of exits are involuntary, they generally mean:

  • The owner did not plan or time the exit ahead of their ideal scenario.
  • External forces such as sudden incapacity, family/legal pressures, financial distress, partner disputes, or death forced the exit or transfer.
  • These exits often occur at suboptimal valuations or under distressed conditions, reducing value and leaving owners with less than they anticipated

📚 Optional Additional Sources You Can Use in Presentations / Documents

If you want more structural support (not just the 50 % stat):

  • Exit Planning Institute — State of Owner Readiness Report (annual research by EPI on exit readiness and transition outcomes)
  • Transworld M&A / Forbes articles citing Snider on owner unpreparedness and forced exits
  • BizBuySell Insight Reports showing low close rates on business listings (supports the narrative that many transitions don’t happen voluntarily at desired times)

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.