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Why 80% of Small Businesses NEVER Sell
What you missed on How2Exit This week
Ronald Skelton
March 25, 2025
Sponsors:
DueDilio is your go-to marketplace and advisory service for all things related to small business acquisitions.
and
Final Ascent, a premier boutique professional services firm specializing in mergers and acquisitions, exit strategies, and growth consulting tailored for lower middle-market firms across the U.S.
E273: Are You Making This Mistake? – Why 80% of Small Businesses NEVER Sell - Watch Here
The Brutal Truth About Selling Small Businesses – A Conversation with Mike Finger
The Short Take
Most small business owners believe they’ll sell their business whenever they’re ready. The harsh reality? Most businesses don’t sell. In this eye-opening episode, Mike Finger, founder of Exit Oasis, sits down with Ron Skelton to expose the myths around small business exits. With personal experience transitioning from burned-out owner to successful seller, Mike breaks down the three fundamental questions every owner must answer to create a sellable business. This conversation is a wake-up call for entrepreneurs who assume their business is ready for sale—when in reality, it may not be sellable at all.
Key Takeaways
Most businesses never sell – The industry loves success stories, but the real numbers show that most owners fail to transition their businesses.
Sellability starts long before you decide to sell – Owners should focus on making their businesses ownable first. If you can step away without the business collapsing, it’s far more attractive to buyers.
Three critical questions determine sellability – Does your business generate desirable results? Can a buyer duplicate those results? Can you document those results?
Tax strategies can sabotage sellability – Owners who “minimize” profits for tax purposes are also minimizing the value buyers see in their business.
Buyers want proof, not promises – Handshake deals and back-of-the-napkin accounting don’t inspire confidence. If it’s not on your tax return, it doesn’t exist to a buyer.
Cash-heavy businesses raise red flags – Many owners say, “a lot of cash walks in the door.” Buyers hear: “I don’t report my real income.” If you want top dollar, run a clean operation.
You can’t replace decades of knowledge overnight – Many buyers overestimate their ability to replace an owner who has spent years mastering their business. Experience matters.
Start preparing now, not when you’re burned out – Most owners wait too long to think about an exit, and by the time they’re desperate to sell, they’ve already devalued their business.
About the Host
Ron Skelton is an acquisition entrepreneur, investor, and the mind behind How2Exit, a leading podcast exploring business acquisitions. With hundreds of interviews under his belt, he’s passionate about demystifying small business sales and helping both buyers and sellers navigate the world of M&A.
About the Guest
Mike Finger is the founder of Exit Oasis, a platform dedicated to helping small business owners prepare for successful exits. A former business owner himself, he learned the hard way that not every business is sellable. After a wake-up call from brokers who told him his company wasn’t worth buying, he spent years transforming it into a sellable asset. Today, he coaches owners on how to create businesses that are both profitable and sellable, whether they want to exit or simply work less.
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