There is a quiet but very real risk building across thousands of privately owned businesses.
Not because they are failing.
But because they are unprepared to exit.
Many baby boomer business owners fully intend to sell their businesses in the next three to five years. Yet very few have done the work required to ensure that exit is orderly, valuable, and on their terms.
That gap between intention and preparation is where value is lost.
Intent to Exit Is Not an Exit Strategy
Recent research highlighted in Inc. points to a striking mismatch: while a majority of boomer business owners expect to exit within the next five years, only a small minority have prioritised building a formal exit strategy
That means many owners are effectively hoping that:
- The business will be ready when the time comes
- The valuation will “work itself out”
- Buyers will see what they see
- Health, energy, and timing will cooperate
Hope is not a strategy—especially when your life’s work is at stake.
The Market Has Changed (Whether Owners Have or Not)
For many boomer owners, the mental model of an exit is outdated.
Historically:
- Buyers were individuals or competitors
- Deals were relationship-driven
- Valuations were loosely negotiated
Today:
- Buyers are increasingly institutional
- Private equity is sophisticated and disciplined
- Valuation is forensic, not sentimental
- Owner dependency is penalised, not tolerated
Businesses that rely heavily on the founder—for decisions, relationships, or execution—are worth less.
And buyers know it.
The Real Risk: Forced Timing
One of the most uncomfortable truths for boomer owners is also the most important.
You may not control when you exit.
Health issues, family needs, burnout, or market shifts can force decisions faster than planned. Without preparation, owners are left negotiating from weakness—not choice.
An exit strategy is not about retiring early.
It’s about having options.
Why “I’ll Sort It Out Later” Is the Most Expensive Decision
Many owners delay exit planning because:
- The business is their identity
- Letting go feels like loss of control
- Delegation has never been their strength
- Day-to-day demands always come first
Ironically, these same behaviours are the ones that:
- Reduce valuation
- Increase buyer risk
- Extend deal timelines
- Weaken negotiating power
A business that cannot operate without the owner is not a business—it’s a job with overheads.
What Buyers Are Really Looking For
Sophisticated buyers don’t just buy financials.
They buy:
- A repeatable operating system
- A leadership team that can run without the owner
- Clear decision rights
- Predictable cash flow
- Low key-person risk
Exit planning is about building transferability, not just profitability.
Exit Planning Is a Growth Strategy (Not a Retirement Plan)
The best exits are not built in the final 12 months.
They are built years in advance, by:
- Reducing owner dependency
- Developing internal leaders
- Clarifying strategy and execution cadence
- Documenting how the business actually runs
- Stress-testing what happens when the owner steps away
Paradoxically, these same actions often:
- Improve performance now
- Reduce founder workload
- Increase strategic clarity
- Make the business more enjoyable to run
Even if you never sell.
The Bottom Line
Boomer business owners don’t need to panic.
But they do need to be honest.
The question is no longer: “Do I plan to exit?”
It’s: “Will my business be ready when I do?”
Exit strategies are not about endings.
They’re about protecting value, preserving choice, and exiting with dignity—rather than urgency.
And the best time to start is not five years from now. It’s now.
Contact tedb@strategyandexecution.com.au for a free Sales Conversion Diagnostic session.
Don’t chase more leads. Convert the ones you already have.
TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS
Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.
My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.
Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.
ABOUT STRATEGY & EXECUTION
For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.
Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.
If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops
