Did you know that about half of all business exits are involuntary? Owners are often forced to sell due to the “5 D’s”: Death, Disability, Divorce, Distress, or Disagreement. Discover how partnering with a certified exit planning advisor in PA can help you build a “just in case” strategy to protect your family and your legacy from unexpected emergencies.
When I talk to business owners about this, the room usually goes quiet.¹ Nobody likes to think about “emergency” exits, but here’s the reality: **About half of all business exits are involuntary.**²
Owners don’t always wake up and decide it’s time to retire. Often, they are pushed into it by one of the “5 D’s”:
Death
Disability
Divorce
Distress (Financial trouble)
Disagreement (Fighting with partners)
It’s an uncomfortable conversation, but facing it now is the only way to protect your family and your legacy.³ At JS Business Solutions, we help you build a “just in case” plan so you aren’t left vulnerable.
The Local Story: I’ll never forget the call I got from a widow whose husband had run a construction company for 30 years. He was the heart of the business, but he had no succession plan and no “buy-sell” agreement. Within six months of his passing, the company was gone, and she lost her primary source of income.⁴ That call is why I’m so passionate about this—it didn’t have to happen that way.
The 5 D’s: What You Need to Know
- Death: Only about 30% of owners have a written estate plan.⁵ Without one, your family might end up fighting over control, or the business might have to be sold at a “fire-sale” price just to pay taxes.⁶
- Disability: This is more common than you think. 1 in 4 people will face a disability before they hit retirement age.⁹ If you can’t work tomorrow, who is going to run the shop? You need a plan for a temporary or permanent absence.¹⁰
- Divorce: A business is often seen as “marital property.” If things go south at home, it can drain the company’s cash or force a sale.¹¹ We encourage owners to have a “Business Marriage Conversation” with their spouse—making sure everyone feels secure and has a plan.¹²
- Distress: Markets shift and competitors move in. If the business starts struggling, you lose your leverage.¹⁴ Having “contingency capital” and strong banking relationships in place before things get rocky is a lifesaver.¹⁵
- Disagreement: Fighting with a partner is a leading cause of business failure. You need a “business prenup” (a buy-sell agreement) that explains exactly how you’ll part ways if you ever stop seeing eye-to-eye.¹⁸
The Price of Being Unprepared
If one of these 5 D’s hits and you don’t have a plan, you’ll likely sell for 30% to 50% less than the business is actually worth.²⁰ You might even be forced to close the doors entirely.
But if you are prepared, the business keeps humming. One of my clients had a massive heart attack at age 58 and was in the ICU for weeks. Because we had already trained his managers and documented his processes, the business didn’t miss a beat.²² When he recovered, his company was still thriving. He told me, “I thought planning was about selling. Now I know it’s about living.”
**Your “Just in Case” Checklist:**²³
- A current Will and Estate Plan.
- A Buy-Sell agreement with your partners.
- Life and Disability insurance.
- A “Management Team” that can run things without you.
- An updated business valuation (so you know what you’re protecting).
My Invitation to You: I offer a free Exit Readiness Review. In one hour, we will look at where you are vulnerable—whether it is death, disability, divorce, distress, or disagreement—and build a path forward.
No pressure. Just the peace of mind that comes from being ready.
Sources
¹ Wealth Enhancement, “Five Key Wake-up Calls for Ambitious Business Owners,” September 2025. Available at: wealthenhancement.com/blog/five-key-wake-calls-ambitious-business-owners
² Exit Planning Institute, “National State of Owner Readiness Report,” 2023.
³ RBC Wealth Management, “Business exit planning: Overcoming emotional and financial roadblocks,” June 2025. Available at: rbcwealthmanagement.com/insights/business-exit-planning
⁴ NJBIZ, “Experts share tips to grow – and possibly sell – family businesses,” July 2025. Available at: njbiz.com/family-business-succession-tax-planning-njbiz-panel/
⁵ Exit Planning Institute, op. cit.
⁶ Harvard Business Review, “The Founder’s Final Act,” September 2025. Available at: hbr.org/2025/09/the-founders-final-act
⁷ Creative Planning, “Planning and Growing Your Business With the End in Mind,” June 2025. Available at: creativeplanning.com/insights/consulting/planning-growing-your-business/
⁸ Social Security Administration, “Disability Benefits Facts and Statistics,” 2024.
⁹ Ibid.
¹⁰ Brown Brothers Harriman, “Succession Planning for Closely Held Businesses,” January 2025. Available at: bbh.com/insights
¹¹ American Bar Association, “Business Valuation in Divorce,” 2024.
¹² NJBIZ, “NJBIZ panel covers planning, succession for family firms,” July 2025. Available at: njbiz.com/njbiz-family-business-succession-planning-2025/
¹³ Forbes Books, “The Hidden 80%: What Most Business Owners Don’t Realize About Valuation,” November 2025. Available at: forbes.com/sites/forbesbooksauthors/2025/11/13/the-hidden-80-what-most-business-owners-dont-realize-about-valuation/
¹⁴ Website Closers, “Key Trends In Business Valuation Methodology,” July 2025. Available at: websiteclosers.com/resources/key-trends-in-business-valuation-methodology/
¹⁵ Benchmark International, “Hidden Value: Often-Overlooked Assets That Can Boost Your Valuation,” December 2025. Available at: benchmarkintl.com/insights/hidden-value-often-overlooked-assets
¹⁶ Wealth Enhancement, op. cit.
¹⁷ Harvard Business Review, op. cit.
¹⁸ Creative Planning, op. cit.
¹⁹ Website Closers, op. cit.
²⁰ Exit Planning Institute, op. cit.
²¹ RBC Wealth Management, op. cit.
²² NJBIZ, “Experts share tips to grow – and possibly sell – family businesses,” July 2025.
²³ Brown Brothers Harriman, “Engaging and preparing the next generation in succession planning,” January 2025.
