The 2023 National State of Owner Readiness Report highlights a generational divide in business exit planning. Younger business owners—specifically Millennials and Generation X—are significantly more proactive in preparing for their eventual exit compared to Baby Boomers.
This shift reflects a broader cultural and financial reality. Baby Boomers often built businesses from scratch, focusing primarily on growth and operations. Exit planning was typically secondary. In contrast, Gen X and Millennials treat their businesses as both operational ventures and financial assets, recognizing the importance of value enhancement, succession, and post-exit strategy.
The data provides a clear picture of this generational contrast:
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Exit Timing
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78% of Baby Boomers expect to exit within 10 years, compared to 70% of Gen X and 74% of Millennials.
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However, only 47% of Boomers rank exit strategy as a top priority, versus 67% of Gen X and 81% of Millennials.
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Preparedness
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Just 13% of Boomers have a written personal exit plan, compared to 43% of Gen X and 56% of Millennials.
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Formal education in exit planning: 42% of Boomers, 70% of Gen X, and 85% of Millennials.
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Financial & Strategic Focus
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Written company transition plan: 2% of Boomers, 37% of Gen X, 44% of Millennials.
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Value enhancement or due diligence: 22% of Boomers, 62% of Gen X, 84% of Millennials.
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Post-exit reinvestment: 22% of Boomers plan to buy/invest in another company, compared to 74% of Gen X and 85% of Millennials.
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Generational Exit Strategy Readiness
| Metric | Baby Boomers (60–75) | Gen X (45–59) | Millennials (29–44) |
|---|---|---|---|
| Exit within 10 years | 78% | 70% | 74% |
| Exit strategy top priority | 47% | 67% | 81% |
| Written personal plan | 13% | 43% | 56% |
| Written company transition plan | 2% | 37% | 44% |
| Value enhancement/due diligence | 22% | 62% | 84% |
| Formal exit planning education | 42% | 70% | 85% |
| Will invest in another company | 22% | 74% | 85% |
Key Takeaways:
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Younger generations are integrating exit planning into their overall business strategy.
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Millennials, in particular, are treating exit readiness as a default part of ownership, not an afterthought.
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Boomers, despite being closest to exit, are the least prepared on paper.
This insight ties directly to broader discussions on:
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Business Organization Trends Across Generations (how ownership structures differ between Boomers, Gen X, and Millennials)
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Value Enhancement and Due Diligence (why Millennials and Gen X are more focused on value creation ahead of exit)
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Exit Planning Education (the growing role of formal learning in preparing for succession)
By connecting these topics, business owners can better understand not only when exits are happening, but also how preparation styles differ across generations.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.