Most Business Owners Plan to Retire, Few Prepare to Sell, Industry Leader Warns
2026 International Business Brokers Association Chairman, Jim Parker
After decades of work, many owners discover too late that selling a business isn’t automatic
ORLANDO, FL, UNITED STATES, December 29, 2025 /EINPresswire.com/ -- Across the United States, millions of small business owners are approaching retirement with the assumption that selling their business will be straightforward. According to longtime business sale expert Jim Parker, that assumption often proves costly.
Parker, a nationally recognized business broker and 2026 Chairman of the Board of the International Business Brokers Association (IBBA), says many owners spend decades building successful companies but never take the steps required to prepare those businesses for the marketplace.
“For most owners, their business is their retirement plan,” Parker said. “But retirement planning and business exit planning are not the same thing. Without preparation, owners can do everything right operationally and still struggle to turn their business into a successful sale.”
Industry data consistently shows that only 20 to 30 percent of businesses that go to market actually sell, a reality Parker says is driven less by business quality and more by preparation, timing, and expectations.
One common mistake Parker sees is owners bringing their business to market at an unrealistic or inflated price, often based on guesswork or hearsay rather than market data. “Overpricing can actually work against sellers,” Parker explained. “It tends to stall interest, reduce leverage, and ultimately lead to longer time on the market or lower final sale prices.”
Why Timing Matters: Start 2–3 Years Before You Sell
Based on nearly 25 years of experience and hundreds of completed transactions, Parker encourages owners to speak with a qualified business broker or M&A advisor at least two to three years before they plan to sell.
That early conversation allows owners to understand what their business is actually worth, financially plan for retirement with real numbers, and receive a candid assessment of what changes may be needed to make the business more attractive to buyers.
“Time gives owners options,” Parker said. “Waiting until you’re ready to sell usually means you’re already under pressure.”
Six Practical Ways Owners Can Improve Sellability and Value
According to Parker, most improvements that increase a business’s value are manageable when done early. Among the most effective steps owners can take to increase the likelihood of selling, maximize price, and secure better terms are:
Maintain Clean, Credible Financial Records
Buyers and lenders rely heavily on financial statements. This includes keeping personal expenses out of business financials, one of the most common issues that delays or derails transactions.
Reduce Owner Dependence
Businesses that rely heavily on the owner for daily operations are riskier to buyers. Delegating responsibilities and building a management structure improves transferability.
Demonstrate Sustainable Cash Flow
Buyers pay for proven earnings, not projections. Consistent performance over time supports stronger valuations.
Address Deferred Maintenance and Operational Gaps
Outdated equipment, unresolved legal issues, or neglected systems often become leverage points for buyers during negotiations.
Formalize Systems and Procedures
Well-documented processes signal a business that can continue smoothly after ownership changes.
Obtain a Professional Opinion of Value
Most owners have never had a formal valuation or Broker’s Opinion of Value completed. Understanding market value early allows owners to make informed, strategic adjustments.
“These are not last-minute fixes,” Parker said. “They’re reasonable steps when done early, but extremely difficult to address once a business is already on the market.”
The Role of Business Brokers and M&A Advisors
Parker emphasizes that business brokers and M&A advisors play an important role well before a transaction occurs, helping owners understand market realities, prepare responsibly, and avoid common mistakes.
“As an industry, our role is to protect business owners,” he said. “That means helping them convert years of hard work into a successful outcome, not leaving it to chance.”
In addition to his leadership role with the IBBA, Parker sells businesses nationally and operates TheAutoRepairBoss.com and TheLawnBoss.com, where he focuses on the sale of auto repair businesses and lawn and landscape companies throughout the United States.
“But this message goes beyond any one broker,” Parker added. “It’s about awareness. Owners deserve to know what’s involved long before retirement is on the horizon.”
About the International Business Brokers Association (IBBA)
Founded in 1984, the International Business Brokers Association is the world’s largest non-profit association for professionals engaged in business brokerage and M&A. The IBBA provides education, certification, advocacy, and professional resources designed to support brokers and protect business owners during ownership transitions.
Media Contact
Grant Parker
Communications Director
Boss Group International
Email: GrantP@bossgi.com
Grant Parker
Boss Group International, LLC
+ +1 407-329-3273
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