In article for Forbes, John Brown cites that 75% of business owners have no sense of urgency or are not ready to exit their business. He warns that this lack of preparation leads many business owners to the same fate as General George Custer.
Owner over-confidence lies in "not knowing what you don't know." This leads owners to not have the funds or means of transferring power to selected individuals before it is too late. Here is one of the causes of this sense of complacency:
Overestimating the net proceeds needed from the sale of the business. (Remember: sale proceeds are reduced by taxes, expenses of sale, and business debt, and may be reduced by earn-out requirements as well.) Your advisors can easily calculate what your net proceeds are likely to be long before any transfer of ownership.