The 17% Club: Why Most Business Owners Fail to Sell Their Business

 And How You Can Be One of the Few Who Succeed

By Tom Bronson

Here is the hard truth:

Only 17% of business owners successfully transition their business.

That means 83% fall short. Deals fall apart, businesses close, value gets left on the table, or owners simply run out of time before an exit becomes possible.

If you have ever wondered how to sell my business or what it really takes to achieve a successful business exit, that statistic should stop you in your tracks.

But it should not discourage you. It should motivate you.

The 17% Club is not exclusive because of luck.

It is exclusive because most owners never prepare their company to be sellable, transferable, bankable, or attractive to buyers.

The good news is that joining the 17% Club is absolutely achievable. And it starts long before you sign an LOI, talk to a buyer, or search for an M&A advisor. It begins with understanding what the successful 17% do differently.

Why 83% of Owners Never Successfully Sell Their Business

When we break down failed transactions, the patterns are clear and consistent.

Waiting Too Long To Prepare

Most owners believe they will start next year. Meanwhile, the market shifts, health changes, or burnout sets in. Timing becomes the enemy.

Financials That Cannot Withstand Due Diligence

Buyers and banks walk away when financial statements are unclear, messy, or full of discretionary adjustments.

If your financials cannot answer buyer questions, the deal dies.

Cash Flow Tied to Owner Dependency

If your business relies heavily on you, buyers see risk, not value.

A business that cannot run without the owner is not a business someone will pay for.

Unrealistic or Inflated Valuation Expectations

Many owners overestimate what their business is truly worth.

The disconnect between expectations and market reality kills deals early.

No M&A Advisor Guiding The Process

Owners who try to sell a business without an advisor find out too late that they do not know what they did not know.

None of these issues should surprise anyone.

They are predictable.

Preventable.

Fixable.

What the 17% Do Differently: The Path to a Successful Sale

The 17% of business owners who successfully sell their businesses do not wait.

They do not guess.

And they do not rely on luck.

They take strategic, measurable steps that build transferable value and reduce buyer risk.

They Start Planning Early

Even two years of preparation dramatically improves valuation and deal success.

Five years is ideal. Owners who plan early have options, and options equal negotiating power.

They Keep Clean, Accurate, Verifiable Financials

Monthly closes, CPA-reviewed or audited statements, and organized books are non-negotiable.

When the numbers are clean, buyers lean in rather than walk away.

They Build A Business That Can Run Without Them

If you are the rainmaker, the firefighter, and the decision-maker, buyers see risk.

The 17% build teams, systems, processes, and documentation that create transferable cash flow.

They Understand What Their Business Is Really Worth

Not a guess.Not what a friend sold for.

They get a real, professional business valuation so they know where they stand and what needs improvement.

They Surround Themselves With Experienced Advisors

The 17% have more than an accountant and an attorney.

They work with an M&A advisor who understands how to prepare a business for sale, structure deals, coach owners, and navigate buyer expectations.

The 17% Club Mindset: Preparation Equals Value

The 17% Club is built around one core belief:

Your business exit should not be left to chance.

Owners who join the 17% Club:

• Know their valuation today

• Improve value drivers consistently

• Treat their business like the transferable asset it must become

• Stay prepared even if their exit is years away

  
  

And here is the key difference: Members of the 17% Club have options.  They choose when to sell, how to sell, and to whom.

The other 83% take whatever is left.

How to Get Started

If you are thinking about selling your business, begin here.

• Get a real valuation.

Not a rule of thumb.

Not a guess.

A real, market-based valuation shows you the gap between where you are and where you want to be.

• Strengthen your financial story.

Buyers pay premiums for clarity, predictability, and reliability.

This is where value is built and where most deals fall apart.

• Reduce dependency on the owner.

Build a leadership team, delegate key responsibilities, and document processes.

A business that runs without you is more valuable.

• Increase recurring and predictable cash flow.

Predictability is the number one driver of business value.

Buyers purchase future cash flow, not past effort.

• Get an M&A advisor early.

Not because you are selling now, but because you want to be ready when the right moment comes.

A seasoned advisor will help you avoid mistakes, prepare strategically, and position your business to attract the right buyers.

The Bottom Line: You Deserve to Be in the 17% Club

You built something real.

You invested years of effort, sacrifice, and commitment.

Your exit should reward that, not reduce it.

The 17% Club is not for the lucky.  It is for the prepared.

Owners who start early, stay informed, and take action create the kind of business buyers pursue and pay a premium for.

And when you are ready to take the next step, we are here to help you get there. We want you to be in the 17% Club.

In the meantime, check out our resource page, schedule a chat with us, or attend the Business Transitions Summit to get prepared.