What is the Generational National State of Owner Readiness™ Report?
In 2023, ten years after Exit Planning Institute® (EPI) launched the very first State of Owner Readiness Research Report, we followed up with new data for a new decade. The 2023 State of Owner Readiness Report™ dove deep into business owner perspectives, gathering key insights on exit readiness and overall knowledge of the exit planning process.
In 2025, EPI examines owner readiness through the unique perspective of generational owner preparedness with our latest Generational National State of Owner Readiness Report. This report explores owner readiness across different generations, from baby boomer business owners to millennial entrepreneurs, and highlights how prepared each group is to exit their business on their own terms, without regrets.
The Value Acceleration Methodology™ helps eliminate this regret by aligning the business, financial, and personal goals of the business owner for both a better business and a better life. Understanding what each generation values allows us to better align these goals and develop an effective exit strategy, which is, in turn, an effective business strategy.
The Times Are A-Changing
Findings from our Generational National State of Owner Readiness Report show that each group approaches exit planning differently, with some engaging more effectively. Overall, business owners agree that exit planning is essential to their success and their businesses'. More than half of baby boomer respondents plan to exit their business in the next five years, but only 27% have had a formal valuation done, and just 9% have an estate plan. This leaves this group especially vulnerable to deep regret over their exit, unable to fully realize their business's potential value, and uncertain about their next steps in life.
Owners often neglect the personal aspect of the Three Legs of the Stool Approach, as they tend to focus primarily on the business and financial parts. Personal planning is a crucial discussion to have with the advisory team and is an important part of helping business owners find satisfaction after exiting.
Millennials, on the other hand, consider exit planning a top priority, with about 52% of millennial respondents indicating this. For those who didn’t prioritize exit planning, approximately 27% said it was because they were too busy, and 23% said it was because they were too young.
Exit planning is now, which the Value Acceleration Methodology teaches us. It is not at the point of exit, or the days before. Owners who make exit planning an earlier priority are better equipped to harvest the full value of their business when the time comes, and are empowered to have a more satisfactory post-exit life as they have aligned their personal, business, and financial goals.
A formal exit planning team is critical for the business owner in this process. Alarmingly, only 5% of baby boomer respondents said that they have a dedicated exit planning team, despite more than half of them preparing for an exit in the next few years. A formal exit planning team is led by a Certified Exit Planning Advisor (CEPA®), the point person for Value Acceleration, and supplemented by other key advisors in the owner’s corner. This can include a financial advisor, a lawyer, a consultant, and a relevant family member. Any of these individuals can also be a CEPA if they have received the designation.
Key Takeaways
As younger generations take on more ownership roles, CEPAs can fill the exit planning gaps and serve as quarterbacks for these owners. They can help shift the mindset from focusing solely on income to emphasizing value, moving from just success to genuine significance.
Older owner groups are at a critical turning point and have the chance to pivot now for value acceleration, rather than waiting until later. With an estate plan in place, a CEPA leading the way, and an open mind, older owners can better prepare for life after exiting and enjoy a more fulfilling fourth quarter for themselves and their families.
Read the full report below for more generational insights.
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