What Happens If You Don’t Have an Exit Plan?
- Miranda Kishel
- 6 days ago
- 2 min read
Every business owner dreams of building something lasting—but too few stop to ask, “What happens if I don’t have an exit plan?” The answer isn’t just about lost dollars. It’s about lost control, missed opportunities, and putting your legacy at risk.
Why This Matters Now
The average small business owner spends decades building value, yet a majority never create a structured exit plan. According to a recent report from the Exit Planning Institute, more than 75% of business owners who sell their companies profoundly regret it within a year—often because they didn’t prepare.
Without an exit strategy, you face:
Succession risk – Who takes over if you step away unexpectedly?
Valuation gaps – Without preparation, businesses often sell for far less than they’re worth.
Tax inefficiencies – Last-minute exits can trigger unnecessary tax burdens.
Operational disruption – Employees, vendors, and customers feel the instability.
In today’s market, where Baby Boomers are retiring in record numbers, interest rates are rising, and M&A activity is shifting, having no exit plan is a bigger gamble than ever.
Lessons from the Field
In my work with business owners, I’ve seen two scenarios play out repeatedly:
Prepared Owners – They begin years in advance, cleaning up financials, strengthening leadership teams, and aligning personal wealth goals with business strategy. These owners exit on their terms, often at a premium valuation.
Unprepared Owners – They wait until a health scare, family pressure, or burnout forces a rushed decision. Deals happen fast, but value is left on the table, and the transition is messy. Employees leave. Clients notice. Owners feel blindsided.
The difference isn’t luck—it’s planning.
My Point of View: The Future of Exit Planning
Looking ahead, I believe:
Exit planning will become part of standard business strategy. Just as companies once ignored cybersecurity until it became unavoidable, succession planning is moving from “optional” to “expected.”
Private equity and strategic buyers will increasingly target only “ready” businesses. Clean books, strong systems, and transferable leadership will command higher multiples.
Owners without an exit plan will face declining options. In the next decade, the number of businesses hitting the market will surge as Boomers retire. Those without preparation will compete for fewer qualified buyers.
Simply put: in the future, no exit plan equals no exit power.
Practical Takeaway for Small Business Owners
If you don’t yet have a plan, start small but start now:
Get a valuation baseline – Know what your business is worth today.
Document systems and processes – Make your business less dependent on you.
Identify future leaders – Whether family, employees, or outside buyers.
Integrate personal and business planning – Your wealth and your business are intertwined.
Don’t wait for a crisis to force your hand. By starting early, you control the timing, the terms, and the legacy you leave behind.
👉 Learn more about building your exit strategy here: Value Planning Reports – Exit Plans
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