Business Owner Exit & Transition Reality
Key statistics on business sale outcomes, owner wealth concentration, exit readiness, and family business transitions.
Most business owners expect to transition their business someday. But an owner's timeline, the business's readiness, and a completed transaction are different things.
The figures below come from different surveys, industry estimates, and historical research. They describe broad patterns, not the likely outcome for any particular owner or business.
Many Businesses That Go to Market Do Not Sell
of privately held businesses that go to market do not successfully sell
An often-cited estimate. Put another way, about 20–30% of businesses that go to market complete a sale. Exit Planning Institute, State of Owner Readiness. Source ↗
of businesses that do sell close below the owner's expected value
A commonly repeated estimate. The source and methodology for this specific figure should be confirmed before treating it as a measured industry result.
Preparing well before a sale can help an owner assess business readiness, understand the factors that may affect value, and consider other transition paths if a sale does not happen on the expected timeline or at the expected value.
For Many Owners, the Business Is Their Largest Asset
of a typical owner's net worth may be tied to the business
Exit Planning Institute estimate. Broad planning estimate, not a universal finding from a current survey. EPI 2018 State of Owner Readiness report. Source ↗
of owners have diversified wealth outside the business
A commonly cited estimate. A consistent primary source and methodology should be confirmed before publication as a definitive statistic.
When much of an owner's wealth depends on the business, a transition can affect both the company and the owner's personal financial goals.
Many Owners Plan to Exit, but Preparation Varies
of owners (ages 45–75, $5M+ revenue) expected to sell within five years
2025 national study of 750 U.S. business owners. 48% within three years; 81% within ten years. Cornerstone Business Services / Center for Generational Kinetics. Source ↗
of owners have completed meaningful exit planning
Often-cited industry estimate. In EPI's 2023 survey, 41% of respondents had a formal written plan for life after selling. EPI 2023 National State of Owner Readiness report. Source ↗
of owners reportedly regret selling within the first year
Frequently repeated in EPI materials, attributed to PwC. The underlying PwC study and methodology have not been independently confirmed. EPI 2023 National State of Owner Readiness report. Source ↗
An intended exit date does not necessarily mean the business or owner is ready. Business readiness, personal financial goals, and plans for life after the transition all deserve attention.
Generational Transitions Are Uncommon
of family businesses continue into the second generation
Historical benchmark. Figures trace back to research on 200 Illinois manufacturing companies from 1924 to 1984. Oregon State University / INSEAD. Source ↗
reach the third generation
Historical estimate. Not a current success rate for every family business.
continue into the fourth generation
Historical estimate. Researchers describe the measure in terms of businesses continuing under family control.
A family transition involves preparing both the business and the people who may own or lead it. Governance, successor readiness, and clear communication are important planning topics.
Consider the Business and the Owner
A transition may involve a sale, a family succession, a management or employee transition, or another path. Understanding the business's readiness, the owner's goals, and the needs of the next generation can help clarify what deserves attention.
Hafemann Financial Services helps business owners assess planning considerations and coordinate with appropriate independent specialists. Tax and legal work are handled by the owner's respective tax and legal professionals.
The sale-rate estimate and owner readiness findings are from Exit Planning Institute materials. Owner transition timelines are from a 2025 survey commissioned by Cornerstone Business Services and conducted with the Center for Generational Kinetics. Family business generation estimates derive from older historical research and are not directly comparable across later summaries. The estimates for businesses selling below expected value, owner wealth diversification, and the share of owners who have completed meaningful exit planning do not have a clearly identified, consistent primary measure in the sources reviewed. The 75% regret figure is repeated in EPI materials but lacks a traceable underlying PwC citation. These qualifications should remain with the statistics if they are published.
Ready to Assess Your Business's Transition Readiness?
Contact Hafemann Financial Services to discuss your business's transition considerations.