Business Owners Risk Leaving Value Behind in Company Sales
Private-business owners are entering a generally favorable mergers-and-acquisitions market, but many begin preparing too late to maximize their after-tax proceeds, according to a new BNY Wealth study.
Sixty-six percent of professional advisors described the market as somewhat or very strong, the 2026 Insights for Private Business Owners report found. Compared with a year earlier, 58% reported more letters of intent, 57% cited increased closed transactions and 53% saw higher mandate volume.
Private equity interest, strategic-buyer activity and demand for quality businesses are supporting the market. Still, 58% of respondents identified interest rates or tighter credit as a risk to dealmaking over the next year, while 55% cited recession risk or earnings downgrades.
Preparation remains a central weakness. Advisors said only 48% of sellers are well prepared when buyer due diligence begins. The most common deficiencies were outdated corporate, legal or financial documents, cited by 46%, and insufficient tax and wealth-transfer planning, cited by 45%.
Although transactions typically take six to 18 months from an advisor’s initial engagement through closing, professionals generally recommend beginning preparations at least two years before a sale.
Early planning can materially affect sellers’ proceeds. Seventy-two percent of respondents said pre-sale income-tax strategies were likely to improve net proceeds, while 79% said the same of wealth-transfer strategies.
Deal structure also matters. Sixty-two percent cited stock sales as a structure that can optimize seller outcomes, while 60% selected asset sales and 43% identified earn-outs. Yet only half of advisors were highly confident that clients understood the implications of cash versus stock, deferred payments and earn-outs.
“Coordination among advisors is a core determinant of outcomes,” said Alvina Lo, BNY Wealth’s head of advice, planning and fiduciary services.
The Harris Poll conducted the online survey for BNY Wealth from April 16 through April 30. Participants included 180 attorneys, 102 investment bankers and 72 certified public accountants who advise privately held businesses.