Intention Alone is NOT Enough
- rwelke1
- Jun 16
- 6 min read

North America (Canada and the United States specifically) is entering a pivotal period of economic and generational transition. Approximately three out of four business owners plan to exit their businesses in the next decade, driven largely by the aging Baby Boomer population, but also exacerbated by COVID and the current economic and political landscape. This expected transfer of ownership represents one of the largest shifts in private wealth in U.S. history, potentially totaling trillions in enterprise value.
Yet the vast majority of these owners are unprepared for this transition. While some have taken initial steps, obtaining valuations or holding succession discussions, only 25% to 30% are considered fully prepared for a successful exit. The disconnect between intent and execution is stark, and the implications are serious, not just for the business owner, but for their families, employees, and communities that they serve and reside in.
Even among owners who acknowledge the need to exit, a critical readiness gap remains. Most do not have:
A documented and validated succession plan,
A transition team or advisor group in place,
A full understanding of the timeframes, tax implications, and emotional dynamics involved in a n exit, and
No clear understanding on what drives enterprise value in a business.
This inertia is not due to apathy. Instead, it reflects a complex mix of emotional barriers, cognitive biases, and real-world constraints that discourage proactive planning. There are a number of barriers that owners face in preparing for their eventual exit. Seven key such reasons are outlined below:
1. Emotional Attachment and Identity
For many owners, the business is not just an asset, it’s an extension of their identity. Letting go often means facing uncomfortable questions: Who am I without the business? What is my purpose? This emotional resistance leads to avoidance, even when retirement is imminent.
2. Lack of Awareness About Timing and Complexity
A common misconception is that selling a business can be done quickly when the time comes. In reality, a well-executed exit can take 3 to 5 years of planning. Most owners are unaware of the lead time required to optimize value, structure tax strategies, and build a successor team.
3. Overconfidence in Business Value
Many owners overestimate the value or salability of their business, assuming that a buyer will appear when they’re ready. They often neglect to assess the transferability of operations or the extent to which the business depends on them personally, factors that heavily influence valuation and buyer interest.
4. Preoccupation with Daily Operations
Owners are often too busy working in the business to work on it. Immediate operational concerns take priority, while long-term strategic planning is postponed indefinitely. Exit planning becomes a “someday” task that never reaches the top of the list.
5. Uncertainty About Life After Exit
The unknown can be paralyzing. Many owners have not envisioned what life will look like after they leave the business. This uncertainty breeds inaction. Questions like “Will I have enough to retire?” or “What will I do with my time?” go unanswered, and in many cases, unasked.
6. Lack of Trusted Advisors
Exit planning requires expertise across multiple domains: tax, legal, operational, emotional. Many business owners do not know where to start or lack an integrated advisory team. Without a proactive value acceleration advisor, the process often stalls or becomes reactive.
7. Perceived Cost and Complexity
Owners may view exit planning as expensive or bureaucratic. The fear of unnecessary fees or complicated processes leads some to delay engaging with professionals, without realizing the true cost of inaction. Owners tend to view exit planning as a cost, whereas it is actually an investment that drives enhanced value. Many business owners do not understand that effective exit planning can actually drive company value, increasing the sale value considerably, paying substantial dividends to owners who understand the real value of such guidance and preparation.
Failing to plan effectively for an exit can result in both financial damage and emotional distress, undermining the legacy an owner spent a lifetime building.
1. Erosion of Enterprise Value
Without preparation, a business may be viewed as risky by buyers. Key-person dependencies, undocumented processes, or unrefined financials can drive valuations down significantly, resulting in owners leaving 30% to 50% of potential value on the table.
2. Fire Sale or Liquidation
In the absence of a plan, life events (health issues, family emergencies, economic downturns) may force a rushed sale at a steep discount, or, in the worst cases, liquidation. According to the Exit Planning Institute, only 20% of businesses listed for sale actually sell, with lack of preparedness a common cause. This number is anticipated to decrease as more and more business more to exit over the next 5 to 7 years.
3. Reduced Retirement Security
Owners typically have 70–90% of their net worth tied up in their business. A failed exit can jeopardize retirement plans and leave families financially vulnerable. Net worth that cannot be liquidated is essentially worthless, yet more business owners are in this position.
4. Unnecessary Taxes and Legal Exposure
Improper tax structuring or delayed estate planning can trigger excessive capital gains taxes or missed exemptions, sometimes reducing net sale proceeds by hundreds of thousands, if not millions of dollars. Proper preparation in advance ensure that all of the opportunities and options are evaluated and prepared for.
5. Operational Chaos and Employee Turnover
In a rushed or unplanned transition, key employees may leave, customer relationships may falter, and internal confusion can erode the very goodwill the business was built on. Numerous cases exist where an owners lack of advance planning has resulted in customer and employees leaving because of the uncertainty of what will happen after the owner’s departure.
Beyond financial outcomes, a failed or chaotic exit can leave lasting emotional scars on the owner, their family, their employees and their communities:
· Loss of identity and purpose: Without a transition plan for their role, many owners feel aimless after leaving the business. 75% of business owners report regret one year after the sale of the business, be it due to seller’s remorse, lack of purpose or lower than expected financial outcomes.
· Regret: Many report wishing they had started sooner or made different decisions. This regret can linger long after the sale.
· Strained relationships: Last-minute decisions or unmet expectations can create tension between spouses, children, customers, suppliers, and business partners.
· Burnout: Owners who delay too long may stay past their prime, emotionally, physically, and strategically, leading to fatigue and disengagement.
· Community Impact: A failed exit can impact communities significantly. Not only will the community lose a business, employees will lose jobs, local suppliers will lose revenue as fewer people will have income to circulate, and municipalities will lose tax revenue as families leave to pursue employment elsewhere.
When exit planning is neglected, the impact is not limited to the owner. The ripple effects can damage family relationships and undermine generational wealth.
1. Financial Vulnerability
If the business fails to sell or sells at a lower value, the spouse’s retirement and children’s inheritance may be severely compromised. Unexpected tax burdens and ongoing liabilities can further drain family resources.
2. Emotional Stress and Relationship Strain
Families are often left scrambling to make decisions under duress. Without clarity around succession, disputes over ownership, roles, or fairness are common, especially in family-owned enterprises.
3. Loss of Legacy and Continuity
When a business closes prematurely or transitions poorly, its community impact, reputation, and institutional knowledge are often lost. The family’s connection to the enterprise may dissolve along with its operations.
The data is clear: the majority of business owners plan to exit in the next decade, but only a minority are taking the steps necessary to do so successfully. Intent alone does not ensure a strong outcome, only thoughtful, proactive execution does.
Exit planning should not be viewed as a retirement event: it is a value-building strategy that benefits the owner today, increases business resilience, and prepares all stakeholders for a confident transition.
Owners who take action gain more than just a higher sale price. They gain peace of mind, control over their legacy, and the opportunity to write the final chapter of their business on their own terms. Those who don’t? They risk losing far more than money: they risk the future they worked a lifetime to create.
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