Following President Trump’s recent tariff announcement, U.S. markets saw a sharp uptick in volatility—the VIX spiked nearly 12% in a single day. In comparison, the Dow dipped 0.27%, and global markets responded with sharp swings.
That’s volatility in action—not just in the markets but also in the mindsets of buyers, investors, and business owners. This uncertainty is becoming the norm, meaning Exit Planning can’t wait for calmer waters. When uncertainty rises, so does the importance of risk mitigation, personal financial readiness, and strategic timing. A strong exit strategy should handle disruptions without being delayed.
In this blog, we’ll explore how market instability affects business exits—and how professionals can help owners manage uncertainty with control.
How Does Market Volatility Redefine Business Exit Planning?
During uncertain times, business owners may assume that their best move is to wait for stability, a “better” time to sell, and for the market to calm down, but we’ve seen, especially in today’s environment, that volatility doesn’t stall the need for Exit Planning. It makes it more urgent.
Economic disruptions increase risk, and buyers factor that risk into how they value your business. Decision-makers—whether private equity, strategic buyers, or family offices—tighten their criteria and scrutinize deals more closely. What once seemed a minor risk can become a deal-breaker in volatile conditions.
A proactive exit strategy accounts for these shifts. It evaluates how market conditions affect timing, valuation, and structure—and aligns those external factors with the owner’s financial goals. This is not a one-time review. It is an ongoing, iterative process to preserve value and maximize outcomes in any environment.
Owners must move from reactive to strategic when it comes to Exit Planning. Volatility doesn’t delay the exit—it underscores the need for readiness.
The Three Core Elements of a Market-Smart Exit Strategy
An exit during periods of volatility demands a comprehensive, aligned strategy that integrates the owner’s personal goals, the business’s operational resilience, and external market realities. At the core of every successful transition are three foundational elements:
1. Personal Financial Readiness
Exit Planning begins—and often succeeds or fails—with the owner’s financial clarity.
Business owners are often intensely focused on growth, operations, and team leadership. Personal financial planning takes a back seat. However, in a volatile environment, delaying this step increases risk. Without a clear understanding of what an owner needs from the sale of the business, it’s difficult to define success, negotiate confidently, or decide whether a given offer is viable.
A personal financial readiness assessment helps establish:
- The owner’s desired lifestyle post-exit
- Liquidity needs and risk tolerance
- Tax planning strategies
- Legacy and estate considerations
It also enables a value gap analysis—a comparison between the owner’s financial goals and the current enterprise value of the business. If a shortfall exists, there is still time to close that gap through operational improvements, risk mitigation, and growth initiatives.
Volatility often acts as a catalyst for these conversations. Just as investors revisit their portfolios during a downturn, business owners should revisit their exit objectives. Alignment between business value and personal financial needs is the foundation of any effective exit strategy.
2. Operational Resilience and Risk Mitigation
A business that can survive volatility is far more attractive to buyers, investors, and successors.
Operational resilience refers to a company’s ability to maintain core functions during disruption. In Exit Planning, that translates to how well a business can continue generating value—even if the market shifts, an integral employee departs, or a supply chain falters.
Buyers pay close attention to risk during uncertain times. Due diligence becomes more rigorous. Investment committees ask more complex questions. Businesses that lack continuity plans, governance structures, or clear leadership succession face greater scrutiny and valuation discounts.
Common de-risking measures include:
- Retention plans for critical employees
- Defined governance and decision-making processes
- Scenario planning for supply chain or revenue disruptions
- Updated insurance coverage and legal documentation
Owners should also consider business continuity and disaster recovery planning as part of their exit strategy. These measures do more than protect the business. They position it as a stable, lower-risk asset in the eyes of a buyer. In volatile markets, operational readiness is a value driver.
3. Market Awareness and Timing Alignment
Exit success is never solely about the business or the owner—it’s about how both align with the market.
Even the most well-prepared owner and resilient business can face challenges if the timing is off. In volatile markets, timing plays a more significant role in shaping deal flow, valuation, and buyer behavior. Owners who understand this dynamic—and adjust accordingly—are better positioned to act strategically.
For example, increased interest rates, shifting tariffs, and geopolitical pressures can stall M&A activity or cause deal terms to change post-LOI. Buyers are more cautious, investment committees are harder to convince, and multiples can fluctuate without warning.
Rather than waiting for “perfect” conditions, Exit Planners should help owners stay informed and adaptable:
- Monitor sector-specific trends and buyer activity
- Reassess timing assumptions based on economic signals
- Prepare contingency plans for delayed or renegotiated exits
- View market cycles as windows for conversation, not reasons to delay
This is where professional Exit Planning creates actual value. An Exit Planner’s role isn’t just to help deal with uncertainty but to turn that uncertainty into clarity. When market realities, personal goals, and business readiness align, owners can move forward confidently—even in turbulent times.
Dealing with Tariffs and Their Impact on Deal Flow
Tariffs are among the most significant external factors influencing business valuations and M&A (merger and acquisition) deal flow. Introducing new trade policies, especially tariffs, can dramatically alter the financial landscape for businesses, particularly those reliant on international supply chains, imports, and exports. As the full implications of tariff policies unfold, business owners and prospective buyers need to be fully aware of how these changes affect deal dynamics.
The most direct way tariffs affect deal flow is by increasing the cost of goods sold (COGS). When tariffs raise the price of raw materials or products, businesses may face squeezed profit margins. For a buyer assessing the potential value of a target company, the uncertainty surrounding future tariff increases or changes can lead to skepticism about the predictability of profits.
Buyers may begin to question the sustainability of the business’s margins or how future tariff hikes will impact the company’s profitability. This increased uncertainty can lead buyers to renegotiate deal terms, push for lower purchase prices, or even pull out of deals altogether.
Given the potential for tariffs to disrupt deal flow and alter market dynamics, business owners need to manage this risk proactively. Here are some ways owners can prepare their businesses for potential tariff impacts during the exit process:
1. Review and Strengthen Supply Chains
Consider diversifying suppliers and exploring alternative sources to reduce reliance on countries with high tariffs. Multiple suppliers or localized production options can provide flexibility and reduce cost exposure.
2. Adapt Pricing Strategies
Work with financial advisors to review pricing strategies and ensure the business can remain competitive despite increased costs. Consider building tariff impacts into long-term economic forecasts.
3. Prepare for Due Diligence
Be ready for the increased scrutiny of tariff-related risks during the due diligence process. Prepare clear documentation about how tariffs impact operations and how the business plans to mitigate these risks.
4. Stay Informed
Keep an eye on policy changes, particularly those related to international trade and tariffs. Understand how these changes could affect your business and adjust your plans accordingly.
5. Be Transparent with Buyers
Being upfront with potential buyers about the impact of tariffs can help build trust and reduce the chances of renegotiation. Provide clarity around how your business manages these risks and outline your contingency plans.
Why Is Demand for Exit Planners Rising in Volatile Markets & How Can They Help Businesses?
Volatile market conditions are making Exit Planning more urgent and complex. Business owners are increasingly aware that external forces—such as fluctuating tariffs, unpredictable inflation, or shifting geopolitical tensions—can significantly impact the value of their companies. As these factors become a constant part of the conversation, the demand for expert guidance in building robust, adaptable exit strategies has surged.
A skilled Exit Planner must be adept at assessing the owner’s needs, understanding market dynamics, evaluating business value, and identifying succession or sale options aligning with personal and business goals.
Positioning Yourself for Success in Exit Planning
As the demand for experienced Exit Planners continues to rise, professionals looking to stand out in this growing field should consider obtaining the Certified Business Exit Consultant® (CBEC®) designation. The CBEC® is a highly respected certification offered four times a year that equips professionals with the tools and knowledge needed to deliver high-quality, actionable Exit Plans to clients facing volatile market conditions.
The CBEC® program is planned explicitly for experienced financial advisors, attorneys, certified public accountants (CPAs), business consultants, part-time chief financial officers (CFOs), etc., who are ready to expand their capabilities in Exit Planning. This program is not for beginners; it’s for professionals who want to go beyond theoretical knowledge and gain the hands-on experience necessary to create fundamental, impactful exit strategies for business owners.
What You’ll Gain from the CBEC® Program
The CBEC® course provides a systematic, results-driven methodology refined over 15 years of real-world application. The curriculum covers 12 comprehensive domains, ranging from understanding the Exit Planning marketplace to the intricacies of deal structuring, taxes, and estate planning. The program emphasizes practical, tangible deliverables that can be directly applied to your clients’ needs. Key aspects of the CBEC® program include:
- In-depth knowledge of owner needs, company valuation, market readiness, and more.
- Real-world case studies and examples to apply what you’ve learned immediately. As per our findings, 19% of CBECs incorporate Exit Planning for an introduction to other advisory work, while 26% use it for preparation for taking a business to market.
- Bonus sessions featuring industry practitioners and business owners sharing insights from their exit experiences.
- Ongoing support and access to a cloud-based Learning Management System that allows you to learn at your own pace and revisit lessons as needed.
Perhaps the most valuable component of the CBEC® program is the requirement to create and submit an actual Exit Plan for a business owner as part of the certification process. This hands-on approach ensures that every CBEC® holder understands the theory behind Exit Planning and has proven experience in designing and executing strategies that work in the real world. This improves your earning potential as well.
In fact, that 22% of CBEC-certified professionals report earning over $250,000 from Exit Planning services.
Elevate Client Success and Practice Performance with IEPA
In an industry filled with theoretical frameworks and generalized advice, the CBEC® designation from IEPA sets you apart by demonstrating that you can help business owners overcome real-world challenges with practical, actionable Exit Plans.
The confidence you gain from completing the CBEC® program will elevate your standing with potential clients and enable you to build stronger, more profitable relationships in your practice.
The CBEC® is perfect for financial advisors, CPAs, business consultants, and others looking to offer their clients comprehensive, results-oriented Exit Planning solutions.
Ask yourself:
- Do I want to discuss Exit Planning merely, or do I want to take on the responsibility of assessing, designing, and implementing real exit solutions that will impact my clients’ futures?
- Am I ready to gain the practical experience and proven methodology needed to deliver tangible results in the face of volatility?
If you’re ready to take your advisory and leadership services to the next level and meet the growing demand for experienced Exit Planners, join the ever-increasing community of professionals who have trusted the IEPA to provide them with the knowledge and resources to thrive in the competitive world of Exit Planning.