Business owners across generations assess their readiness for exiting differently, reflecting personal and strategic priorities.
As someone who has guided numerous business transitions, I see the personal leg of exit planning as a critical starting point. The data suggests a generational divide in readiness, with older owners like Baby Boomers showing higher confidence, possibly due to experience, while Millennials lag, perhaps due to less exposure to exit processes. This gap underscores the need for tailored advisory approaches, helping owners align personal goals with business value to bridge their wealth aspirations effectively.
According to the 2023 National State of Owner Readiness Report by the Exit Planning Institute (page 36), owners rated their exit readiness on a 1-6 scale. Key findings include:
- Baby Boomers rated themselves highest, with 25% at 6 (Perfect) and 24% at 5 (Best-in-Class).
- Generation X followed, with 26% at 5 and 21% at 4 (Slightly Above Average).
- Millennials showed lower readiness, with 21% at 4 and 18% at 3 (Slightly Below Average). Benchmarks from prior EPI reports indicate that owners with formal exit plans score 20-30% higher on readiness scales, a trend reflected in these results.
Readiness Ratings by Generation
| Generation | Perfect (6) | Best-in-Class (5) | Slightly Above (4) | Slightly Below (3) | Thought About (2) | Not on Radar (1) |
|---|---|---|---|---|---|---|
| Baby Boomers | 25% | 24% | 18% | 14% | 11% | 8% |
| Generation X | 9% | 26% | 21% | 18% | 13% | 13% |
| Millennials | 9% | 19% | 21% | 18% | 9% | 6% |
Key Takeaways
- Higher readiness among Baby Boomers may reflect longer business tenure.
- Millennials’ lower scores suggest a need for more guidance in early planning.
- Consistent with EPI benchmarks, formal planning correlates with higher readiness ratings.
For more on exit readiness, explore the Exit Planning Institute’s resource library or dive into generational trends in business transitions via BizBuySell’s quarterly reports. These resources offer deeper insights into aligning personal goals with exit strategies.
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.