Why 70% of Businesses Fail to Sell — And What You Can Do About It

By Jessica Y Jung, CFP®
Founder, Vast Wealth Advisors

After nearly two decades advising business owners across the country, I’ve seen it too many times: someone spends 20, 30, even 40 years building a successful company—only to discover they can’t sell it when they’re finally ready to exit.

It’s heartbreaking. Not just because of the financial hit, but because of what the business represents: your life’s work, your legacy, and often your family’s future.

The statistic is sobering: nearly 70% of businesses that go to market never sell. Most people are shocked to hear that. But the real question is: why? And more importantly: what can you do now to avoid becoming part of that statistic?

The Harsh Truth About Business Exits

Most owners don’t realize how unprepared they are until it’s too late. The reasons businesses fail to sell are often avoidable—but they require planning well before you’re ready to exit.

Some of the most common reasons include:

Overdependence on the owner: If the business can’t run without you, buyers see risk—not opportunity.
Lack of financial documentation: Incomplete or disorganized books scare away serious buyers and diminish your company’s value.
No transferable systems: Without clear operations, processes, and procedures, the business feels like a black box.
Unclear growth potential: Buyers want to know the business can grow without heroic effort.
Poor succession planning: No second-tier management in place? That’s a red flag.

Each of these is fixable—but only if you start early.

Start Thinking Like a Buyer

The first shift you need to make is to stop thinking like a seller—and start thinking like a buyer.

Ask yourself: If I were going to buy my business tomorrow, what would I need to see to feel confident in that purchase?

You’d probably want:

Clean and transparent financials
Reliable cash flow
A team that can operate without you
Repeatable systems
Strong customer relationships
Legal and tax structure in order

When buyers don’t see these things, they walk—or offer a lowball price that doesn’t reflect your years of hard work.

The good news? All of this can be planned for and improved, with the right team and timeline.

Why You Need a Transition Team

I often tell my clients: Don’t sell your business alone.

Selling a company is not like selling a house. It’s not just about finding a buyer—it’s about preparing your business to be bought.

You need a team that includes:

A financial advisor (someone like me)
A CPA who understands deal structuring
A business broker or investment banker
An experienced M&A attorney
Sometimes a valuation expert or business consultant

Each plays a unique role in preparing you and your company for a successful transition. Together, we help you get your financials in shape, position the business for buyers, and ensure the deal is structured in a way that maximizes your after-tax proceeds.

The Clock Is Ticking

Another mistake I often see? Waiting too long.

Many business owners come to me in their 60s or even 70s thinking they’re “finally ready” to sell. But here’s the truth: you should start exit planning at least 3–5 years before you want to sell.

Why so long? Because buyers want a business that’s stable and sustainable. They want to see multi-year financial trends. They want to meet and evaluate your leadership team. They want evidence—not promises—that the business will thrive after you’re gone.

Starting early also gives you more control. It allows time to optimize taxes, clean up operations, and even grow the business’s value before taking it to market.

Build Value Now, Reap the Rewards Later

You don’t have to be ready to sell today to start increasing the value of your business. In fact, some of the best value-building moves happen years before you ever talk to a buyer.

Here are a few strategies that can make a big difference:

Document your processes – From sales to service delivery to HR, write down how your business runs.
Develop your leadership bench – Train your team to take on more responsibility.
Strengthen recurring revenue – Buyers love predictability.
Reduce customer concentration – If 50% of your revenue comes from one client, fix that now.
Get your books in order – Hire a professional CPA and run clean financials.

These aren’t just exit strategies—they’re smart business moves that make your company stronger, more profitable, and easier to manage today.

What’s Your Exit Worth?

Here’s the million-dollar question (sometimes literally): What is your business actually worth?

Many owners have a number in mind, but it’s usually based on hope—not data. The market ultimately decides, and the more prepared you are, the more likely you are to hit (or exceed) your target.

Getting a valuation, even if you’re years away from selling, can help you set realistic goals and identify where to focus your efforts now.

Final Thoughts

If you’re a business owner in your 50s or 60s, now is the time to start thinking seriously about your exit. Don’t wait until you’re exhausted, burned out, or forced to sell due to health or family reasons.

Instead, take the time now to prepare—build your team, clean up your business, and position yourself for a successful transition.

The 70% failure rate doesn’t have to be your story. With the right preparation and a proactive mindset, you can exit on your own terms—profitably, confidently, and with pride in what you’ve built.

Jessica Y Jung, CFP® is the founder of Vast Wealth Advisors. She helps business owners and high-net-worth individuals align their resources with their goals through customized wealth strategies. This blog is for informational purposes only and does not constitute financial advice.

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