Five key insights reveal lower-middle market business owners risk leaving millions of dollars on the table due to limited understanding of valuation and M&A practices.
GREEN BAY, Wis., June 10, 2025 /PRNewswire-PRWeb/ -- Cornerstone Business Services Managing Partner and Founder Scott Bushkie, a recognized speaker, author, and M&A expert, announced the release of the 2025 National Study on Selling Your Business: Groundbreaking Research into Business Owner Attitudes, Trends, and Expectations About Selling Their Business. The research illuminates the motivations and factors owners are considering when selling their businesses and offers key insights into how owners can maximize their business valuation, even when negotiating with sophisticated buyers who have broad knowledge of mergers and acquisitions.
In the study, Bushkie set out to understand why only 25% of small businesses in the U.S. successfully transfer to a new owner, and what could be keeping business owners from being more successful. Surveying 750 business owners between the ages of 45 and 75 who own businesses generating $5M+ in annual revenue, the research uncovered compelling insights that pave the way for a greater share of business owners to plan a successful sale or exit.
"Business owners only get one chance to sell their business successfully, so every business owner should be armed with knowledge and a team of specialists that will help them achieve the retirement they want. This research is designed to educate business owners about steps they can take now to prepare for that successful sale and the critical mistakes to avoid. After a lifetime of working hard to build a valuable business, owners deserve a thorough planning process guided by an experienced advisor," says Bushkie.
The eye-opening data reveals important knowledge gaps among business owners. With the baby boomer cohort on track to be virtually out of the workforce by 2035, there has never been more urgency for this generation to shore up retirement plans. Key findings include:
- 49% of business owners believe their retirement plans and dreams would be in jeopardy if they could not complete a sale of their business
- 92% of business owners who either founded or inherited their business, did not have to purchase their company from a third party, and therefore do not know what to expect or how a sale works
- Fewer than 4 in 10 business owners (38%) have done a fair market analysis (FMA) by a reputable mergers and acquisitions (M&A) firm, instead relying on informal assumptions
- 43% plan to run their business until they are physically and/or mentally unable to continue
- 65% of business owners feel that their identity is deeply tied to their business
Cornerstone's research shows that while business owners are often motivated by personal and market factors when selling, many struggle to follow through with exit planning—not for lack of trying, but because the process is unfamiliar and often overwhelming. The demands of day-to-day operations, along with concerns for employees, staff, and family, often take priority, leaving owners feeling stuck and unsure of how to move forward. In fact, 37% of business owners have tried to sell their business in the past but were unsuccessful.
The study arrives at a time when baby boomers (the generation cohort born between 1946 and 1964) are set to retire in record numbers. The United States Census Bureau estimates 20 million people retiring between 2025 and 2035, prompting many to refer to it as the "Silver Tsunami." It will be the largest transfer of wealth the US has ever seen. In addition, the study uncovered that Silver Tsunami business owners are at a significant disadvantage when trying to sell their businesses. With record retirements, maximizing exit value has never been more crucial for baby boomer business owners looking to avoid a "working retirement."
As a leading authority in the M&A industry, Bushkie is on a mission to help business owners ensure that the largest financial transaction of their life is done right.
"My team and I are on a mission to better understand why business owners are so great at starting and growing a business but so bad when it comes to the sale of their business. Many say the national average is 20%-30%, which we believe is just not good enough. We wanted to better understand the business owner's mindset and how we could help them achieve more success when it comes to the single largest financial transaction of their life. The answers we found were not only eye-opening but many of them shocking, showing a clear picture why business owners are at a significant disadvantage when it comes to selling their business in the lower middle market," says Bushkie.
The Cornerstone Business Services team uses their proprietary Assurance 360TM process to help business owners maximize exit value, typically generating multiple offers and a high likelihood to close (5-year average closing ratio of ~85%).
Access the Full Research Report
To download the full research report or learn more about Scott's speaking, books, and work, visit https://www.cornerstone-business.com/research-report/.
About Cornerstone
Cornerstone Business Services is a boutique investment bank that specializes in mergers and acquisitions for the lower middle market. Serving businesses with annual revenues between $5 million and $150 million, the firm offers acquisition searches, company sales, and fair market analysis across North America. Known for its team approach and proprietary Assurance 360™ process, Cornerstone generates multiple offers, ensures a high likelihood of closing, and maximizes value. The firm is especially trusted by first-time sellers who seek expert guidance to navigate their most significant financial transaction.
Media Contact
Megan Turkow, Cornerstone Business Services, Inc., 1 (920) 436-9890, [email protected], https://www.cornerstone-business.com/
SOURCE Cornerstone Business Services, Inc.
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