3. The Importance of Exit Planning

Exit planning is both good business strategy and an essential part of preparing for the future. It is not just about what comes later, it is about taking action now. Exit planning is present tense, deeply personal, and grounded in intentional steps that protect your business, your wealth, and your legacy.

The Business Owner's Perspective

For business owners, exit planning provides tangible benefits today, not just in the future. It can help you make more money now, gain independence, reduce risks, increase wealth, and empower your teams or children to carry your business forward. Exit planning is also about achieving your personal aspirations while ensuring that the enterprise you have built continues to thrive.

The National Landscape

Exit planning is not only about individual businesses, it has national importance. In the United States, more than 99% of businesses are privately owned. Many of these are led by baby boomers, who were born between 1946 and 1964. According to the U.S. Small Business Administration, more than half of the nation’s small business owners are over the age of 50, and baby boomers own about 51% of all privately held businesses in the country. That translates to about 3 million businesses valued at between $10 and $14 trillion.

With so much ownership concentrated in the hands of baby boomers, the wave of business transitions is only just beginning. Research shows that 57% of baby boomer owners are preparing to exit their businesses in the next 5–10 years. Additionally, 38% of Generation X owners (born between 1965 and 1980) are planning their exits within the same timeframe.

The five most common methods of transferring ownership include:

• Selling to a third party

• Selling to co-owners

• Transferring to family members

• Completing a management buyout

• Establishing an Employee Stock Ownership Plan (ESOP)

According to the CEPA State of Owner Readiness Survey, first-generation owners tend to favor external transitions, while second-generation owners often prefer internal succession strategies where legacy and passion drive their decisions.

How Pickler Law Approaches Exit Planning

At the Pickler Law, we strive to make a difference in the lives of our clients. We celebrate their achievements and support them in times of challenge and adversity, helping them navigate life’s turbulent waters. We operate as a family office, meaning we look at the whole picture of your financial, legal, and business life. One of the ways we maximize value to our clients is by expanding our knowledge base and maintaining deep expertise in areas that matter most to them. One of these areas is exit planning.

We are fortunate at Pickler Law to have three attorneys who have earned the Certified Exit Planning Advisor (CEPA®) designation: David Pickler, Robert Hale, and myself, Ed Brundick. A CEPA® is a professional designation for advisors who complete specialized training in exit planning for business owners. We help owners maximize the value of their companies and transition out of them on their timetable and their terms. Whether through sale, succession, or another strategy, we guide clients through the complexities of planning for their eventual exit.

Final Thoughts

Exit planning is not only a business decision, it is a life decision. It connects personal goals, financial security, and the legacy you leave behind. By preparing today, you can protect your business, your family, and your future.

Be sure to tune into the full podcast episode here, where I am joined by David and Robert. Together, we will dive deeper into why exit planning is essential for business owners, how tax planning factors into the process, and what strategies can help you transition successfully on your terms.