What Happens If You Don't Have an Exit Plan?

The Cost of Doing Nothing Is Higher Than You Think

Most business owners don’t wake up thinking about exit planning. They think about sales, payroll, vendors, and taxes. Exit planning feels like a “someday” task—until someday arrives, and they’re forced to exit without a plan.

When that happens, the outcome is almost always the same: a rushed deal, a low valuation, heavy tax consequences, and a lot of regret.

Why This Matters Now

America is in the midst of a massive succession wave. According to Kiplinger, baby boomers own nearly half of all privately held businesses in the U.S., and many plan to retire in the next 5 to 10 years. The problem? Most of them don’t have exit plans.

This creates what experts call a succession risk crisis—a growing number of businesses will either sell below value, shut down entirely, or leave employees, clients, and families in chaos.

For younger entrepreneurs, the lesson is clear: Waiting too long to plan doesn’t just risk money. It risks everything you’ve built.

What I See in Practice

I’ve worked with hundreds of small business owners—some of whom planned ahead, and many who didn’t.

Here’s what I’ve seen happen when there’s no exit plan:

• A family-owned business tries to pass the reins to the next generation, only to discover the children have no interest or aren’t prepared. The result? A fire sale.

• A service-based company loses its owner to illness. With no leadership plan in place, the company loses clients within weeks. The business, once thriving, dissolves in under 90 days.

• A tech firm receives a buyout offer—but without clean books or valuation prep, they can’t justify the price they want. The buyer walks.

Each of these owners could have preserved more value—and peace of mind—with a simple roadmap created years in advance.

My Perspective: Exit Planning Will Become a Non-Negotiable

We’re moving toward a business landscape where transferable value is king. Buyers, lenders, and even employees want to see a company that can survive and thrive without its founder.

In five years, I believe exit readiness will be a core metric of business health—just like profit, cash flow, or revenue growth.

Owners who delay or ignore exit planning will increasingly find themselves uncompetitive in succession, finance, and dealmaking.

Practical Takeaway for Business Owners

If you don’t have an exit plan, here’s what to do today:

• Get a business valuation. You need a starting point.

• Think about your timeline. When would you like to exit—realistically?

• Write down your goals. Do you want to sell, transfer, retire, or something else?

• Talk to an advisor. Even a simple conversation can clarify your next steps.

Exit planning doesn’t have to be overwhelming. It just has to be intentional.

Book a Discovery Call to take the first step. Because if you don’t decide how your business story ends, someone else will.