$14 Trillion Wake-Up Call: Are Business Owners Ready to Exit?

The Exit Planning Institute's 2025 State of Owner Readiness Report reveals a striking generational shift in business ownership — and a widespread planning gap. It underscores a core message: exit planning is business planning, and starting early — regardless of age — is the key to maximizing value and avoiding regret.

Based on a survey of over 1,100 U.S. business owners, the report finds that 75% intend to exit within the next decade, representing a potential transfer of $14 trillion in wealth across 4.5 million businesses. Yet despite this urgency, only 13% of owners have a formal exit plan, and just 5% of Baby Boomers — the generation closest to exit — have a formal exit planning team in place.

Generational differences shape how owners approach the transition. Baby Boomers are most likely to seek a third-party sale but are the least prepared, with 87% lacking a personal post-transition plan and 27% without a formal business valuation. Younger owners — Gen X and Millennials — prioritize exit planning far more actively, with 81% of Millennials listing it as a priority compared to just 23% of Baby Boomers.

Have you wondered if your business is ready for what's next? Invest in a 20 minute chat with Encompass Valuation Advisors to investigate.