Retirement continues to lead as the number one reason to sell across all sectors, followed by burnout.
Nevertheless, the majority of Main Street business owners fail to plan for the sale of their business. Advisors indicated that 85% of business owners in the, $500,000 sector conducted no formal planning and did not meet with any type of advisor prior to engagement. Lower Middle Market business owners were more proactive, although nearly a third (31%) in the $5M-$50M sector failed to plan.
Even among business owners who do plan, only a few are working with any kind of professional advisor (e.g. CPA, wealth, attorney, broker) to discuss exit strategies a year or more in advance.