Of the 250,000 US companies with $5M to $100M in revenue set to transition by 2030, how many will actually sell for desired value?

The statistic that indicates only around 14,000 out of the 250,000 U.S. companies with revenues between $5 million and $100 million are expected to sell for their desired value underscores the challenges business owners face during the transition process. This figure is crucial because it highlights the significant gap between the number of businesses planning to exit and those who are likely to achieve a successful sale at a satisfactory price.

The process of a business sale involves various factors including market conditions, business preparation, timing, and the effectiveness of the exit strategy. Many owners may overestimate the value of their business or may not adequately prepare their business for sale, thereby missing out on achieving their desired outcomes. This situation emphasizes the importance of effective exit planning, valuation assessment, and market readiness for business owners who wish to maximize their return when selling.

Understanding this statistic is vital for Certified Exit Planning Advisors, as it underscores the need for strategic planning and advising throughout the exit process to help ensure that their clients can navigate the complexities and enhance their chances of a successful sale at the desired value.