According to one report, a staggering 75 percent of business owners are seeking to exit their businesses within the next decade.¹ This unprecedented wave of leadership transitions signals a major turning point, and it’s happening faster than most people realize.

Awareness of the need for exit planning has soared among financial planning and advisory clients, with 69 percent of business owners now identifying it as a top priority (a dramatic increase from a decade ago).¹ However, many business owners are still grappling with the complexities of the process.

Fortunately, forward-thinking financial professionals have always recognized that comprehensive exit planning is an essential component of smart business strategy.

Why Don’t More Business Owners Have a Successful Exit Plan?

Exit planning can feel daunting to business-owning clients, especially when the process requires slowing down, addressing the right questions, and determining where to seek expert guidance.

Initial reasons business owners may lack an exit plan:

• Owners may struggle with getting started and whom to trust during the exit planning process.
• Many face uncertainty about the necessary steps, often lacking both a dedicated transition team and a formal plan.
• Time is also a significant factor; exiting or transitioning ownership is rarely quick and usually requires months or even years of careful planning, coordination, and execution.

The Financial Professional’s Opportunity in Exit Planning

The opportunity for financial planners and advisors is not just about saving the client time or assembling a collaborative team of experts to facilitate a transition; those are added benefits. The opportunity is about truly understanding what is needed at every stage of the transition. In doing so, professionals create a chance to build a deeper, more trusting relationship with clients by supporting them through one of the most significant decisions in their lives. For example, business owners must manage complexity as their business and personal lives are often highly interconnected. Research says the business is typically around 80% of a business owner’s net worth.² A financial professional can provide significant help, adequately serving business owners by focusing on both as part of a holistic view of the client’s picture.

Many business owners focus heavily on the business aspects of the transition and overlook the personal and emotional aspects. However, it’s essential to address client readiness holistically before diving into financial specifics.

Here are three signs that a business owner may be overlooking the complexity of a business transition and could benefit from your help:

1. They lack a dedicated transition team: Without a group of trusted professionals, including attorney and risk professionals, owners may not have the support needed to navigate both the business and personal challenges of exiting.
2. There’s an absence of a formal process: When owners don’t have a clear plan in place, they often miss critical steps related to preparing themselves.
3. They are neglecting personal and emotional aspects of the transition: Failing to reflect on life after the transition can result in regret, loss of identity, or uncertainty about the future, making it crucial to address these aspects alongside business and financial considerations.

Financial professionals should begin by taking the lead in helping the client assess their mindset in these areas. By guiding a thoughtful conversation around “What’s next in your life?” planners and advisors can help their clients explore how their emotions may influence their decisions.

Why Readiness Matters for Exit Planning Success

Financial professionals should view exit planning as a three-legged stool: achieving genuine alignment means addressing the client’s business, financial, and personal readiness together.

• Business readiness: Is the business well diversified in terms of revenue streams? Is there a strong management team with a plan to retain them for continuity purposes? Is the business appealing to buyers?
• Financial readiness: What does the sale mean for the owner’s life and wealth? How much after-tax money will they receive? How does the deal structure affect their financial future?
• Personal readiness: Owners often neglect this leg, struggling with identity loss, loss of control, and uncertainty about what to do next, leading many to regret selling.

Key First Steps for Helping Clients Navigate Financial Transitions

As financial professionals, we play a pivotal role in guiding business owners through the exit process. Begin by facilitating a conversation to clarify the owner’s vision:

• Determine the owner’s goals: What is the vision for your business? Do you have an exit strategy in place? Is the plan to pass the business to family, transition to employees, or seek a strategic buyer (such as through M&A or Private Equity)?
• Assess wealth planning needs: One of the most important things we as professionals can do is show what it could look like when clients unlock the wealth tied up in their business. It is critical to get clients started with financial planning prior to sale. In addition to modeling different scenarios with the sale of the business, professionals can show various financing strategies, tax planning, and gifting scenarios.
• Build an advisory team: Assemble professionals, such as attorneys, accountants, value advisors, M&A advisors, brokers, and/or lenders, to address gaps and support the transition.
• Collaborative approach: Successful exit planning often requires a coordinated effort, leveraging multiple areas of expertise, and engaging in financial modeling and “what ifs” together.

Each exit option, whether passing the business to family, transitioning to employees, or selling to a strategic buyer through M&A or Private Equity, comes with its own unique challenges and emotional considerations. That’s why it’s essential to ask not only about financial goals but also about the owner’s personal values, relationships, and vision for life after the transition, ensuring the process aligns with their broader aspirations and needs.

Post-Transition Security Is Foundational to Client Peace of Mind

Comprehensive wealth planning is also a critical foundation for any successful exit strategy. Before moving forward, it’s essential to ensure that your client’s personal financial situation is secure and aligned with their long-term goals.

Once their personal finances are in order, the next step is to assemble a robust advisory team to address any gaps and provide the specialized expertise needed to achieve your client’s financial objectives.

A collaborative exit planning process typically involves a diverse group of professionals:

• Financial Advisors
• Attorneys
• Accountants
• Value Advisors
• Business Brokers or M&A advisors
• Lenders

These experts should work together with you to help guide business owners through every stage of the transition, combining their knowledge to address the complex challenges of exit planning and reinforcing that lasting success is a team effort.

Beyond the practical considerations, it is equally important to account for the emotional dimension, as this more complete approach opens the door to meaningful conversations about how leaving a business affects identity, purpose, and well-being.

Your Role in Supporting the Emotional Side of Exit Planning

Statistics show that almost 75 percent of business owners who sell their companies end up regretting the decision.¹ This shows transitions aren’t just a financial issue; these transitions are deeply emotional. Many clients making a transition believe they’re ready to exit, but without a clear vision for life after the sale, they often face uncertainty, loss of identity, and questions about what comes next. The transition can be overwhelming, especially for entrepreneurs who have poured their passion into building their businesses.

Business owners are often driven, productive individuals, and they frequently have a range of interests beyond their companies, whether it’s philanthropy, consulting, writing, mentoring, launching a podcast, or pursuing new ventures.

Exploring the possibilities ahead of time is essential in helping the client with a successful and fulfilling transition. Keep in mind that they will have a lot of time on the calendar to fill. What does that look like? They will also no longer have the level of social interaction at work anymore. What do their social circles look like? How will married life change when they are home more often?

Here are three ways to help them explore the transition:

1. Run “low-stakes pilots” before the exit

Spend three to six months actively engaging in one or two post-exit paths. Treat it like a mini operating plan with time blocks and outcomes. If a client won’t commit a few hours a month to it now, they won’t suddenly care after liquidity.

2. Build a post-exit calendar, not a vision statement

Most regret comes from vague thinking. Together with the client, map a real weekly schedule for their first 90 days post-sale and include who they meet, what they work on, where their time goes. Ask: “Does it create structure, relevance, and forward momentum?” If the calendar feels thin or artificial, that’s a warning signal.

3. Create a replacement identity stack

Your client’s business currently provides status, challenge, and belonging. They will need deliberate substitutes for each. There is now a huge void and identity gap to fill.

Define:

• Where the client can create value (e.g., board roles, mentoring)
• Where the client can be recognized (e.g., publishing, speaking)
• Where does the client belong (e.g., peer groups, communities)

This is where financial professionals can play another crucial role. Professionals can guide owners through these emotional aspects of selling by helping them envision their total future, identify their passions, and develop a way to fund their well-rounded “life after” plan.

Leverage Technology to Lead the Exit Planning Experience

Using financial planning tools and scenario visualizations, professionals can walk clients through various options, showing what different futures might look like, and helping them decide how to deploy their resources most meaningfully. By helping owners visualize through scenario planning they can begin to see what their future looks like exploring the range of permutations with a potential sale.

Utilizing a digital solution also ensures that owners, their supporting teams, and all financial professionals stay aligned throughout every phase of the transition. Technology empowers business owners to visualize their future, track progress, and make informed decisions with confidence, ultimately enhancing both the financial and emotional aspects of successful exit planning.

Exit Planning: Looking Ahead

Exit planning is a journey, not a single event. As business owners face new challenges and opportunities, the landscape continues to evolve. Even after the transition is complete, there’s ongoing work to ensure personal fulfillment, financial stability, and a successful adjustment to life beyond the business. The most important step is starting to plan for your company’s future today.

To learn more about effective exit planning specifically for small business owners, read Financial Planning for Small Business Owners.

¹ 2023 National State of Owner Readiness Report, Exit Planning Institute, 2023

² Behind the Numbers: How Exit Planning Grows AUM For Financial Advisors, Exit Planning Institute, 2025

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