When Timing Is Not Enough – PART 1

By Amy Felknor | Generational Group

01/27/2026

As favorable M&A conditions extend into 2026, strong buyer demand, available capital, and resilient valuations continue to create meaningful exit opportunities for privately held business owners. Yet most owners remain structurally unprepared for a transition, placing enterprise value, tax efficiency, estate intentions, and post-liquidity outcomes at risk.

Generational’s Alliance Program is designed to close this readiness gap by aligning accounting, legal, wealth management, and other trusted advisors with Generational Group’s M&A specialists around a shared objective: helping owners prepare early, execute confidently, and exit well. When advisors collaborate, clients benefit from clarity, continuity, and outcomes that extend well beyond the transaction.

A Historic Window for Ownership Transitions

The current M&A cycle is supported by declining interest rates, sustained private equity demand, and historically high levels of deployable capital. Private equity firms alone are estimated to hold more than $2 trillion in dry powder, actively pursuing quality middle-market acquisitions across sectors such as manufacturing, healthcare, IT services, and business services.

At the same time, owner readiness continues to lag behind market opportunity. According to the Exit Planning Institute’s 2023 National State of Owner Readiness, demographic and lifecycle forces are accelerating exit timelines while preparation remains limited:

• Ownership Transition Wave:73% of privately held U.S. companies expect to transition ownership within the next decade, representing an estimated $14 trillion opportunity.
• Near-Term Exit Intent:49% of owners plan to exit within five years, often without sufficient advance preparation.
• Advisory Gaps:While 68% sought transition advice, 78% lacked a formal transition team.

For advisors, these dynamics represent both risk exposure for clients and a meaningful opportunity to add value early.

Exit Readiness Is an Advisory Imperative

Successful exit outcomes are rarely created at the point of transaction. They are built through coordinated planning among financial and legal advisors working in partnership with M&A specialists, often years in advance of a sale.

From an advisory perspective, exit readiness consistently hinges on four core elements:

• Early, Integrated Planning:Proactive coordination enables tax efficiency, estate alignment, and strategic flexibility rather than reactive decision-making.
• Objective Valuation and Positioning:Defensible valuations support realistic planning, stronger negotiations, and better outcomes.
• Succession and Continuity Planning:Clear transition paths directly influence valuation, execution certainty, and legacy outcomes.

Advisors who address these fundamentals early help protect value, reduce uncertainty, and strengthen long-term client relationships.

To be continued in Part Two: evaluating exit paths and the role of coordinated advisory execution.

For a concise visual overview of exit readiness and planning considerations, click here to view Generational Group’s short educational video.