Selling an American business is one of the most significant financial decisions an owner will make. A well-planned exit can secure your retirement and reward years of effort, while poor planning often results in lower sale prices, higher taxes, and deal complications.
According to the McKinsey Institute for Economic Mobility, the United States is facing a historic “great ownership transfer,” with approximately six million small and medium-sized businesses expected to undergo ownership transitions by 2035 as baby boomers retire. More than one million of these are viable candidates for sale, representing up to $5 trillion in enterprise value. Gallup research indicates that just over half (52.3%) of U.S. employer businesses are owned by people aged 55 and older. Many of these owners are approaching or at typical retirement age, with a substantial portion planning exits in the coming years. Yet, surveys show that only about 54% of small business owners have a formal succession plan in place, leaving a significant preparation gap.
At Aspen Valuations, our CBV-certified team in Calgary, Toronto, and Vancouver provides independent, defensible valuations to help business owners execute successful exits across a wide range of industries. (Note: If you want to localize the team locations to U.S. cities such as New York, Chicago, or Los Angeles, let me know for further adjustment.)
What Happens When You Sell Your Business?
Selling typically involves transferring shares or assets to a strategic buyer, competitor, private equity firm, or management team. Common challenges include:
- Difficulty attracting buyers or achieving a premium price due to owner dependency and weak systems.
- Lengthy due diligence that uncovers operational gaps.
- Significant capital gains taxes and potential IRS disputes.
- Operational disruption during the sale process.
Starting exit planning 2–5 years in advance is essential to build transferable value and maximize proceeds.
Why Professional Valuation Matters
An independent valuation is critical to:
- Set a realistic, defensible asking price using income, asset, and market approaches.
- Support negotiations and withstand buyer due diligence.
- Optimize tax strategies, including the Section 1202 Qualified Small Business Stock (QSBS) exclusion or other available exemptions where applicable.
- Strengthen shareholder agreements ahead of a full sale.
All valuations follow rigorous professional standards for transparency and credibility.
Best Practices for Successful Exit Planning
- Begin comprehensive exit planning 3–5 years early.
- Obtain periodic CBV-certified valuations to track value and identify improvements.
- Reduce owner reliance, strengthen management, and document processes.
- Update shareholder and buy-sell agreements.
- Prepare clean financials and operational metrics for due diligence.
At Aspen Valuations, we deliver clear, comprehensive reports in 5–10 business days to support informed decision-making.
Conclusion
In today’s environment of massive business transitions, proactive exit planning paired with independent valuations is the key to protecting and maximizing your life’s work. Aspen Valuations offers fast, client-focused, CBV-certified expertise. Contact us today to start planning a successful and rewarding exit.