Are You One Of The 88% Of Business Owners Without An Exit Plan?

Built to Sell by John Warrillow

Built to Sell by John Warrillow

A 2012 survey by John Warrillow and his company called “The Sellability Score” has some interesting findings; especially for those business owners who may be thinking about eventually exiting by selling their business.

These survey results come from 1245 respondents who own a majority of their company and with annual sales of less than $20M.

Highlights from the survey :

  • 88% of respondents do not have an exit plan.
  • 76% of respondents expect to exit their business in the next 10 years.
  • 61% expect to sell their business to a third-party, that is, not pass it on to a family member or current employee.
  • Only 10% are considering passing it on to one of their children.
  • 70% expect to stay on for less than 12 months after the sale closes.
  • 33% expect the sale of their business to fund their retirement.
  • 17.1% expect to earn a return of 4% or less on their money when they retire.
  • 68.4% expect to earn a return of 5 to 10% on their money when they retire.
  • 14.5% expect to earn a return of 10% or more on their money when they retire.
  • 31.7% have delayed selling their business due to the poor performance of the economy.

Are you among the 88% who do not have an exit plan? If you are eventually planning to exit by selling your business then now is the time to start working on a plan.

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About smudan

Coach to CEO's and Business Owners with an end game or transition in mind while simultaneously building the equity value of their enterprise and creating a better life/work balance.

3 comments

  1. Pingback: Why Do Only 25% of Saleable Companies Exit? « Suki Mudan

  2. Pingback: Interest Rates and Timing When Exiting A Business « The Affluent Boomer™

  3. Pingback: Wealth Legacy Group – RJ’s Blog – The “Necessary Nine” – Nine Tips For Successful Business Succession Planning « Suki Mudan

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