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PREPARED BYSTATE OF SUCCESSIONAND EXIT PLANNING IN THEHORTICULTURE INDUSTRY2025SPONSORED BY: Message
Table ofContentsIntroduction0406081116404346Respondent ProfileBenchmarking theState of ReadinessAdvocacy and EducationSurvey MethodologyPulse QuestionsThings to Know for aSuccessful Transition or ExitBe Ready! A Checklistfor the Unexpected48Conclusion - Exit Without Regrets49About PivotPointAppendix - Survey Response23
IntroductionPivotPoint Business Solutions is thrilled to share the results of the2nd Annual State of Succession and Exit Planning in theHorticulture Industry Survey. Once again, we’ve partnered withMeister Media, Advanced Grower Solutions, BEST Human Capitaland Advisory Group, and Hathaway and Lane Direct to bringclarity to one of the most important, and often overlooked, questionsowners are facing in our industry:This year, we took the survey a step further. In addition to measuring thecore drivers of business value and readiness, the 2025 survey alsoexplores some of the most pressing challenges horticulture owners facetoday: immigration, tariffs, climate change, rising insurance costs, andaccess to capital. These external pressures may be beyond your control—but how you prepare your business to face them is not. The 2024 survey results gave owners a much-needed baseline forpersonal, business, and financial readiness—helping them see wherethey stood among their peers. The 2025 survey builds on that foundationby benchmarking progress, uncovering new trends, and offering insightinto how owners are actively working to build long-term value.How do you transition out of your business—without regrets?
Too often, we see owners so focused on the daily demands of thebusiness that planning for what’s next gets pushed aside. Successionand exit strategies are delayed—or worse, never developed—leavingowners and businesses vulnerable to the unexpected. This report is designed to change that mindset.With the data, insights, and real-world perspectives shared here, our goalis simple: To help refocus owners on what they can control, so they canexit with confidence, on their own terms—and without regrets.We extend our deepest gratitude to our sponsors for their expertise andongoing support. And to the many owners who completed the survey—especially during your busiest season—thank you. Your input brings thisreport to life. Together, we are shaping a future where horticulturebusinesses don’t just survive—they thrive for generations to come.
Between March 13 and May 19, 2025, electronic survey invitations weredelivered to 1,975 horticulture growers, retailers, suppliers, and gardensupply owners. This year, the definition of “horticulture” was broadened toinclude all sectors—flowers and ornamental plants, vegetables, fruit, andgarden design and landscaping services. Despite the diversity ofoperations, business succession and exit planning challenges are strikinglysimilar, making the expanded sample both relevant and valuable. A key improvement from the 2024 methodology was a refined targetingstrategy. This year’s survey focused exclusively on business owners,rather than including both owners and C-level executives. As a result, thequality and relevancy of responses was significantly elevated. The 2025 survey had two primary objectives: SurveyMethodologyTo benchmark key responses against 2024 survey results usingthe “three legs of the stool” model:1.To evaluate how current political and economic conditions—including early policy decisions by the new administration—mayinfluence business operations or affect owners’ timing for exit. Personal financial readiness of the owner2.Operational readiness of the businessFinancial readiness of the business
Survey questions were guided by the Value Builder System™ 8 Driversof Growth, a proven framework that identifies the operational areascritical to increasing business value. Additional questions drew upon thereal-world expertise of PivotPoint Business Solutions’ Certified ExitPlanners, informed by years of hands-on experience working with andadvising horticulture businesses and owners.A total of 148 qualified owner responses were received. This representsa 7.5% increase in response rate compared to 2024, despite a narrowerpool of invitees. A demographic breakdown of respondents can be foundin the “Respondent Profile” section of this report. A NATIONAL VIEW OF RESPONDENTSBusinesses from 33 states were represented among the surveyrespondents (highlighted in dark green).
LLCS CorpBUSINESS SECTORRespondentProfileGENERALOWNERBUSINESS TYPEGrowerGrower & RetailerRetailerManufacturer,Supplier, Other51%30%10%10%FloricultureOlericulturePomologyLandscape Other62% 15% 15% 32% 21%CORPORATE STRUCTURE41%26%7%4%4%Sole ProprietorshipC CorpOtherPartnership18%AGE< 29 yrs 29-43 yrs 44-59 yrs 60-65 yrs 66-70 yrs > 70 yrs8%31%29%15%15%2%
YEARS AS BUSINESS OWNERNon-ownerBUSINESSPOSITION IN BUSINESSGENERATION OWNEROwner/Co-owner4%96%<5 yrs5-9 yrs10-20 yrs> 20 yrs76%16%5%3%Not a familybusinessFirst/Founder SecondThirdFourth orgreater> Fourth9%35%35%14%7%1%BUSINESS ORGANIZEDYEARS COMPANY HASBEEN IN BUSINESSREVENUE< $1M $1-$2M $3-$5M $6-$10M $11-$50M $51-$100M14%19%25%20%16%5%Family owned & operatedOutside ownership/Partners/InvestorsPrivate equityOther91%3%5%1%< 5 yrs5-9 yrs10-20 yrs> 20 yrs92%4%2%2%
10-2526-50 51-10015% 14%EXIT OR TRANSITIONWHAT IS YOUR HORIZON FOR EXIT?HOW PERSONALLY PREPARED ARE YOU FOR EXIT?DO YOU HAVE ANEXIT STRATEGY?52%49%Yes No< 66-9> 10021% 23% 11% 16%NUMBER OF CONSISTENT FULL-TIME EMPLOYEESHOW READY IS YOUR BUSINESS TO TRANSITION TONEW OWNER OR BUYER? (ON A SCALE FROM 1-10)5Now7%< 2 yrs10%6-10 yrs25%> 10 yrs23%2-5 yrs36%Not preparedat allHave startedto considerexitingTalking tofamily aboutexitingTalking to mymanagementteam aboutexitingHave trustedadvisors workingwith mePrepared toexit today17%20%17% 9%23%15%101
Pulse QuestionsAs a business owner, staying responsive to shifts in the economy, market, andpolicy landscape is critical. But in an election year like 2024, the number ofchanges, and the uncertainty they bring, can create added anxiety anddistraction. With that in mind, we asked owners how theseevolving dynamics are influencing the way theyoperate, plan, and prepare their businesses, aswell as how the changes may affect futureplans for succession or exit. We focused on six key “pulse areas” affectingthe horticulture industry.It is important to note that most of these issuesare outside the direct control of businessowners. Fortunately, industry advocates likeAmericanHort and political action committees(PACs) are working tirelessly to shape theconversation in Washington. While they carry that fight forward, we encourage owners to stay focused onwhat they can influence: customers, their team (including permanent andseasonal workers), and suppliers, as they too are facing headwinds. These arethe things owners can influence, manage, and refine during uncertain times topositively increase the value of the business for future transfer or sale.ImmigrationWage RatesTariffsClimateInsuranceCostsAccess toCaptial
“Tariffs and laborpolicy maychange in D.C.—but if you don’tplan for them,the real risk isright at home.”Select the top 3 issues created by the new administration’s policies oreconomic conditions that concern you most.The top concern among owners is a potential recession, cited by 68% ofrespondents. Tariff policies came in second at 56%, followed by the risingcost of insurance (39%), and tied at 36%: immigration/H-2A/H-2B visaprograms and the Adverse Effect Wage Rate (AEWR). QUESTIONFINDINGSDespite concerns, theFederal Open MarketCommittee's (FOMC) latestlong-term economicprojections from Marchprojects a soft landing forthe U.S. economy, withslowing growth but norecession. Still, policyuncertainty, especiallyaround tariffs, makes themonths ahead a criticalwindow. Efforts to realigntariffs with U.S. tradingpartners is well underway. What’s keepingowners up at night?Immigration and labor costs remain closely linked. Massdeportation plans have caused alarm among growers,though recent signs suggest possible exceptions foragriculture—a potential relief. As for the AEWR,advocacy continues for a wage freeze as part offiscal year 2026 legislation.PULSE QUESTIONSTop Issues Keeping Owners Up at Night68% 56% 39% 36%PotentialrecessionTariffpoliciesRising costof insuranceImmigration/H-2A/H-2B/AEWRThe administration has announced over 200 new tradedeals are in process, but few specifics have beenreleased.
“Not all impacts are bleak.25% of respondents feelcurrent policies will sparkbusiness growth.”What are the top 3 expected impacts on your business from thecurrent administration’s policies?The most anticipated impact? A need to raise product prices, cited by 74%of respondents. This is followed by expected decreases in cash flow (28%)and disruptions to production/operations (26%). Businesses reliant onimported products, equipment, and supplies will likely experience thegreatest potential impact. Sourcing more from U.S. suppliers may helpbusinesses blunt tariff’s impact on pricing. Encouragingly, some early tradeagreement terms suggest possible future benefits for horticulture. QUESTIONFINDINGSis the need to increaseproduct pricesHow Might These ChangesImpact Your Business?Labor shortages remain a concern (29%),primarily due to immigration-relateduncertainty. If the administration doesloosen deportation policy for farm workers,that would provide welcome relief.Notably, not all owners see the outlook asbleak. Nearly 25% of respondents believecurrent policies could spark businessgrowth.Climate risk is also on the radar, although only 8% of respondents ranked itas a top 3 risk. In 2024, The Department of Commerce, National Oceanic &Atmospheric Administration (NOAA) reported 27 climate-related disasters inthe U.S., resulting in more than a billion dollars in damage.Rising climate impacts are tied toinsurance cost spikes, which are aconcern for 39% of respondents.Horticulture businesses in high-riskzones saw elevated losses,reinforcing the need for proactiverisk management and annualreview of coverage.PULSE QUESTIONS#1 concernof owners
“The best time to builda lending relationshipis before you needthe loan.”How easy or difficult is it to access capital for operational investments?With cash flow concerns, and thepotential for tariffs to increase theprice of imported products andsupplies, it is important to have accessto capital to bridge short-term gaps aswell as fund needed long-terminvestments. Of the 80% ofrespondents who sought funding,43% said it was “not difficult” and32% described it as “relatively easy”or “very easy.” Only 14% reporteddifficulty. The leading sources ofcapital were banks and credit unions(43%) and Farm Credit (32%). Local banking relationships canincrease funding success, especiallyduring volatile periods. Farm Credit—thanks to its status as a government-sponsored enterprise (GSE)—offerslocalized decision-making andpotentially lower rates, making it a keyfunding option. QUESTIONFINDINGSDifficultAccessing Capital toGrow and InvestRelativelyEasy orVery Easy14% Not Difficult43% 32% PULSE QUESTIONS
PULSE QUESTIONSOther key investment areas included:Labor efficiency & workforce development (28%)Market expansion & diversification (27%)Technology (24%)All three align closely with what potential buyerslook for when determining a business’s value.64%infrastructure andfacility upgrades28%labor efficiency andworkforce development27%market expansionand diversification 24%technology“You can’t predictevery policychange—but youcan prepare yourbusiness to thriveno matter whatcomes next.”Find domestic sources for products, equipment, andsupplies where possible to reduce tariff exposure. Focus on employee retention among both permanent andseasonal workers to foster loyalty. Retention will help keepcosts down.Focus on what you can control. As the policy and economic conditions continue to evolve, themost resilient horticulture businesses will be those that stay focused on controllable factors: In the sections that follow, we’ll dive deeper into the priority issues identified by surveyrespondents—from labor and operational costs to tariffs, capital, and succession planning.There’s a lot to unpack, and we’re here to help you translate insight into action.Reassess insurance policies as part of a broader risk strategy.Build banking relationships before capital is needed.Monitor cash flow and manage spending today to avoidproblems tomorrow. If you pursued funding, how did you plan to use the funds?Owners prioritized infrastructure & facilityupgrades (64%), including irrigation, energyefficiency, and storage. It's unclear whether theseupgrades were climate-driven or efficiency-focused,but either way, they contribute to business value.QUESTIONFINDINGSHow Might These ChangesImpact Your Business?THE P INT
The 2024 survey laid the groundwork for horticulture owners to assess theirpersonal and business readiness for future transition. Using the Exit PlanningInstitute’s (EPI) “three legs of the stool” framework—personal financial readiness,business financial readiness, and business operational readiness—we continueto track progress across these key areas.This year’s findings reveal signs of improvement, but also ongoing challengesthat signal much work still needs to be done across the industry for owners toachieve a successful exit or succession.According to the Small Business Administration (SBA), an estimated 10 millionbusinesses will change hands before 2031, but the Exit Planning Institutewarned in their 2023 National State of Owner Readiness Report that 80% ofthese businesses will not sell due to a lack of readiness. Through year-over-yearbenchmarking, this survey helps horticulture owners understand whereprogress is happening and where focus is still needed. BenchmarkingThe State ofReadiness
BENCHMARKING THE STATE OF READINESSPersonalReadinessto Exit1.How ready do you personally feel to exit your business?The shift in number of ownersbringing management into exitconversations went from 6.5% to 14%The number of owners personallyprepared to exit more than doubled,from nearly Additionally, the number of ownersengaging their management team inexit conversations rose from 4.5% to14%--a promising shift toward futureplanning. While reliance on trusted advisors forexit planning declined by roughly 10%,the increase in team-based planningmay reflect a stronger internal focus onleadership succession.4% in 2024 to9% in 2025.Personal readiness to exitmore than doubled—from4% to 9%. Owners arefinally starting theconversation.4.5% 14%2024 Survey Results2025 Survey Results
FinancialReadinessto Exit2.“Knowing yourFreedom Pointhelps you leaveyour business—and live the lifeyou’ve earned.”How financially prepared are you to exit your business? Owners ranked their average financialreadiness asconsistent with 2024. Understanding yourFreedom Point—the point when the saleof the business provides enough financialresources to live the life you want—isessential for financial readiness. 6 outof 10A financial advisor is a great resource for helping determine your FreedomPoint. Yet only 14% of respondents identified a financial advisor as a keyexit planning partner, a 3% increase from last year. At minimum, everyowner should build an exit team that includes a CPA (up 6% from last year),an attorney (down 4%), and a financial advisor—each plays a unique role indeveloping a viable exit plan.BENCHMARKING THE STATE OF READINESS
BusinessReadinessto Transition3.How ready is your business to transition to a new owner or buyer?This area saw the greatest year-over-year improvement, with average scoresrising fromKey drivers of business readiness includea strong team, reliable systems, clearlydefined processes, a clear growthstrategy, and minimal reliance on theowner.A business that can functionindependently of its owner will alwaysattract a higher valuation—and peak theinterest of more buyers3 to 5out of 10Businessreadinessjumped 67%,from 3 to 5 outof 10. Progress ishappening—butwork remains.BENCHMARKING THE STATE OF READINESS
4.“If you’re notlistening to yourcustomers—someone elseis.”How do you most often measure customer satisfaction?MeasuringCustomerSatisfactionrank customer satisfaction as a toppriority for increasing business valueWhile many owners still rely on informalfeedback, the use of written surveys,including the Net Promoter Score,increased from 6.5% to 12%, and verbalfeedback methods decreased by 8%.Yet, only 8% of owners rank customersatisfaction as a top priority when it comesto increasing business value.In unpredictable markets, knowing yourcustomer is essential—not just to increasesales, but to maintain loyalty, encouragereferrals, and differentiate your brand withlimited investment.ONLY OF OWNERS8%BENCHMARKING THE STATE OF READINESS
TechnologyInvestmentand Adoption5.How would you rate the technology used in your business? 20% now reportusing leading-edge tech—up5% from 2024.We saw a shift away from “acceptable”technology ratings (down from 73% to68%) and an increase in owners reporting“leading-edge” technology (up from 15%to nearly 20%). This may reflect bothinvestment trends and a growing number ofyounger, more tech-savvy respondents. Artificial Intelligence (AI) driven analyticsand automation are gaining traction acrossthe industry. Owners will likely need toupgrade infrastructure and train staff—which may require funding—to keep pace. Investment isbeing made intechnology. Therewas a notable shiftof "acceptable"technology ratingswhen compared tothe 2024 survey.73%68%2024 Survey Results2025 Survey ResultsBENCHMARKING THE STATE OF READINESS
“Vacations areessential. They’renot optional.”– Dr. Susan Albers,Cleveland ClinicThe VacationQuestion – A LitmusTest for OwnerIndependence6.When was the last time you took a vacation from your businessthat was 2 weeks or longer?This simple question speaks volumes about how independently a business canoperate from the owner. In 2025, 28% of owners reported taking a two-weekvacation in the last six months, compared to 15% in 2024.Those who’ve never taken a vacation dropped by 9%, and those who haven’tvacationed in two years declined by 5%. These improvements suggestgrowing trust in team leadership and a healthier owner mindset. A little timeaway can help make you more creative, decisive, and focused, giving you theenergy to build your exit plan!The number of owners taking atwo-week vacation increased from15% to 28%BENCHMARKING THE STATE OF READINESS
Things to Knowfor a SuccessfulTransition or ExitBased on the survey results, here are four essential things to “know” toaccelerate business value and ensure a successful transition:Know Your CustomerReturning customers are worth up to 10x more than new customers. Involatile markets, brand loyalty is your best defense.Know Your People and ProcessesA strong team, clearly defined workflows, and modern systems increaseboth value and readiness. Businesses that can run without daily ownerinvolvement command higher offers.Know Your LimitsDelegation isn’t a weakness—it’s a business strength. Your ability to taketime off reflects your business’s maturity and transferability.Know Your PlanRecurring revenue, customer diversity, and smart use of capital areessential planning areas that will prepare your business and team for thefuture and be positive attributes to a potential buyer.
Know YourCustomerIn uncertain times, loyalcustomers are often yourmost valuable asset. Not onlyare they more cost-effectiveto retain than new ones, butstudies show that returningcustomers can be worth up to10 times more over theirlifetime. That kind ofrecurring value is especiallycritical when navigatingvolatility in the market,pricing pressure, or changesin customer behavior. That’swhy now—more than ever—understanding yourcustomers’ needs,expectations, andsatisfaction is a must.
Returningcustomers areworth up to 10Xtimes more thannew customersFindings: Despite its importance, manyowners still rely on informal approaches tocustomer feedback. Over 52% of respondentssaid they primarily capture satisfactionverbally. While that’s consistent with pastyears, there’s been a modest increase inthose using written surveys—up from 6.5%to 9.4%, and 2.5% are using the written NetPromoter Score. Still, 29% of owners reportnot surveying customers at all. Question: How do you most often measure customer satisfaction?of owners report notsurveying customers at allFindings: Predictable revenue is another key component of customer value.Nearly a third of owners (31%) say more than 26% of their revenue isrecurring. While that’s a strong start, it’s essential to protect these revenuestreams from volatility. If your business depends on long-term or subscription-based contracts, now is the time to review your terms. Adding escalationclauses—especially those tied to tariff or supply chain increases—can help youmaintain margins when external conditions shift.Question: What percent of your revenue is recurring?THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXITAs more respondents shift focus toward product differentiation (20%) andassessing new offerings (29%) to drive growth or offset other impacts,unbiased customer feedback becomes even more critical. Without it, newinvestments may fall flat—or worse, miss the mark entirely. And when it's timeto exit, a clear, data-backed understanding of customer satisfaction, that isbenchmarked year-over-year, can enhance perceived business value.29%
Withoutcustomerfeedback, newinvestmentsmay fall flat—orworse, miss themark entirely.Adjust your offerings based on real customer needs—not assumptions.If you rely on recurring revenue, revisit your contract terms to protect profitability.The better you know your customer, the stronger your position, whether you’re planningto grow or preparing to exit. Now is the time to build processes that allow you to regularlymeasure customer satisfaction and use those insights to guide decisions.Knowing your customer is more than good business, it’s a strategic asset that will increaseperceived value to a prospective buyer.Reduce customer concentration where possible to increase business value.Launch a low-cost feedback survey and track trends over time.Findings: The survey also revealed a cautionary tale:33% of respondents said their largest customeraccounts for more than 11% of total revenue. For 9%of owners, that figure jumps to 26–50%. While bigcustomers may bring stability and scale, they can alsopose a valuation risk, especially if they negotiatepreferential terms that limit your flexibility orcompress margins. A business with high customerconcentration is often seen as riskier by buyers,making diversification an important consideration forexit planning. Don’t have all your eggs in one basket.Your customer distribution—and the portion of yourtotal revenue they produce—needs to be balanced.Question: What percent of your overall revenue did your largest customerrepresent last year?Margins tied to requiretight management in uncertain times. LARGE CLIENTStight managementTHINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXITTHE P INT
Know YourPeople andProcessesFinancials are easy to quantify.They’re tangible, measurable,and validated by your CPA. Butone of the hardest things for abuyer to assess—and one ofthe most critical—is whetheryour business can functionwithout you.We explored four key areasthat contribute to operationalindependence and businessreadiness: management teamawareness, employeecapability, documentation ofprocesses, and technology.The findings reflect someencouraging movement, butalso a clear message: morework is needed to reduceowner dependency andbuild transferable value.
“If your teamdoesn’t knowthe plan, theycan’t help youexecute it.”Findings: Just over half of respondents (53%) said their management teamis fully aware of their exit plans. Another 25% have told some members,while 22% have told no one.Question: Is your management team aware of your plans toeventually exit your business? Management TeamSharing your plan with your leadership team has atwo-fold benefit. First, you need your managers toexecute your plan. You cannot do it alone. Sharingthe workload with the team will allow you to focuson your own personal and financial readiness,which is as important as readying your business.Second, it deepens loyalty by signaling trust.When team members are included in exitconversations, they shift from simply executingday-to-day tasks to actively contributing to thelong-term vision for the business. There is also a significant risk in not communicating. The longer an exit processdrags on without transparency, the greater the potential employees may leaveyour company. We are seeing firsthand the ramifications of employee turnoverwhen there is a lack of communication. Employees are perceptive. Failing to bringthem into the fold erodes trust, fuels uncertainty, and can jeopardize theretention of key talent at a time when continuity is essential. Employee AbilityQuestion: Select the top 3 business issues you feel you need to focus on toincrease the value of your business to a potential buyer.Findings: The most frequently selected issue was “building a team that canfunction without me,” chosen by 58% of owners. Following closely were“documenting SOPs” (49%) and “attracting and retaining the right people”(39%).THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
Owners understand the value of steppingback and building a self-sustainingbusiness. They need the right people, inthe right seats, with the right knowledgeto do their jobs. But they don’t have to doit alone. Hiring an HR leader oroutsourcing recruitment may be themost efficient way to find top talent. Thehunt for talent in the horticultureindustry has become more difficult, froma time and money standpoint. The realityis that the horticulture industry does nothave the volume of talent needed,particularly with the vast number of babyboomer retirements. With no backfill, thechallenge is getting worse.Communicate transparently with trusted employees and build a retention planin the event employees begin to get concerned about the future. Letting HRexperts strategically revise your organizational structure and build your team bymining their networks and canvassing the market may be your best investment,especially when the cost of turnover is rising.Operational ReadinessQuestion: The documentation of our systems and processes for operations,human resources, and administrative functions is:Findings: A positive shift is taking place. The number of owners who keep SOPs“in their head” dropped to just 6%, while 36% are now documenting systemsonline or electronically and sharing as needed.Having a strong team is step one. Making sure they know how to do their jobsconsistently and efficiently is step two. Documented, shared, and regularlyupdated operating procedures help reduce training time, eliminate costly errors,and improve retention—all of which will help keep product and service pricingdown.building a teamthat can functionwithout me58%documenting SOPs49%attracting andretaining theright people39%THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
State of Automation and Technology“Buyers see‘acceptabletech’ asyesterday’snews.”Question: Rate the technology/software/systems you use in your businessFindings: There is no doubt that automationcan improve efficiency and consistencythroughout your business. The adoption of“leading-edge” technology increased by4.5% to nearly 20%. While 11% still considertheir systems outdated, and 2% manageoperations entirely manually. We considerthis a significant improvement and a sign thatowners are understanding that the energy,effort, and investment it takes to shift frommanually running the business to automatingthe business is worth it. Automation assuresstandard processing throughout the businessand across your teams. Operational ReadinessQuestion: The documentation of our systems and processes for operations,human resources, and administrative functions is:Findings: A positive shift is taking place. The number of owners who keep SOPs“in their head” dropped to just 6%, while 36% are now documenting systemsonline or electronically and sharing as needed.Having a strong team is step one. Making sure they know how to do their jobsconsistently and efficiently is step two. Documented, shared, and regularlyupdated operating procedures help reduce training time, eliminate costly errors,and improve retention—all of which will help keep product and service pricingdown.THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
Question: What was your average pre-tax profit over the past three years?Findings: Nearly half of respondents (49%) reported a three-year averagepre-tax profit over 10%. Among them, 20% are seeing 15-20%, and 8% areexperiencing greater than 20%. With these strong profit margins, now is the time to reinvest in your business.Even if you believe your technology is “acceptable,” consider how a potentialbuyer might perceive it. In today’s fast-moving market, what’s acceptabletoday may be viewed as outdated tomorrow. Technology is advancing rapidly,and what was once considered cutting-edge can quickly become antiquated.Buyers are increasingly wary of acquiring companies that require immediatecapital investment to upgrade systems. Ensuring your technology is modernand scalable not only improves operational efficiency, it also increases theattractiveness and value of your business in the eyes of a future buyer.Communicate transparently with trusted employees and have a retention planready in the event employees begin to get concerned about the future.Solve your organizational structure and talent issues sooner, rather than later. Justlike a great sports team, it takes a lot of practice and time to build a confident,winning team.Don’t delay – invest where it’s needed. Bring in an outside technology expert to doa true assessment of your technology. It may take 2-3 years to fully implementand train your team. Delegate activities to your managers or team and provide the tools andknowledge to do good work. It will free you to focus your energy where it’sneeded most – financials and planning for growth. Invest in your team. Make sure you are fully staffed so your business can runsuccessfully without resource gaps, allowing your team to focus on work/life balance.THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXITTHE P INT
Know YourLimitsBuyers don’t plan around yourseason. An offer, a health crisis,or a life change can comewhen you least expect it. That’swhy readiness isn’t a projectfor “someday”—it’s anoperational priority for today.You need to be ready!We were curious to seewhether owners werespending time on the businessareas most affected byeconomic and policy shifts—orif they were still consumed byday-to-day functions. Theresults revealed a tensionbetween what owners “know”and what they “do”.
Findings: Owners are still spending thelargest share of time on operations(28%) and sales (20%). Time spent onfinancial management (17%) andHR/people development (11%) increasedyear-over-year but remains lower thanexpected for owners preparing for afuture transition. Strategy rose to 14.5%,but still lags where it needs to be.Marketing and HR get the least amountof an owner’s time, energy, and effort.Although some reallocation is happening,many owners remain stuck in day-to-dayoperations, leaving less time to focus onlong-term planning and growth, whichexplains why 17% of owners are “notprepared at all to exit”. Question: What % of your time do you spend on the following activities inyour business?Owner FocusFindings: More owners are taking their health and well-being intoconsideration and stepping away for much-needed rest. In 2025, 42% saidthey had taken a two-week vacation in the last year, up from 28% in 2024.Still, 50% are struggling to get away, which could be a sign of over-involvement in the business and lack of confidence in the team’s ability to runoperations independently.Question: When was the last time you took a vacation from your businessthat was 2 weeks or longer?Planning to Get AwayNearly a ofowners are “not preparedat all to exit.”FIFTHTHINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
Findings: Only 3.5% of owners believe their businesswouldn’t survive. Most think it would survive, but notwithout impact—19.7% say it would “hardly suffer,”45.3% expect it would “suffer a little,” and 31.6% said itwould “suffer a lot.” This points to a lingering issue:owner dependency. The more your business relies onyou to function, the harder it will be to sell—and the lessattractive it will be to buyers.“Reducing relianceon yourself is thesingle greatestaction you can taketo protect—andgrow—the value ofyour business.”Question: How would your business perform if you were out of action for 3months and unable to work?Owner DependencyMake time to work on the business. Take the vacation. Plan for theunexpected. The most successful transitions happen when you’re pulledto a purposeful next step—not when you’re pushed to transition.Delegate, delegate, delegate. Treat your time as priceless and use it onactivities that will give you the greatest return and lift in value.Owner centricity is a value killer in the horticulture industry. Owners must makea concerted effort to delegate responsibilities and train strong, autonomousmanagers to lead. Reducing reliance on yourself is the single greatest actionyou can take to protect—and grow—the value of your business.feel their business will suffer ifthey are away unexpectedlyfor at least 3 months. 3/4 of ownersTHINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXITTHE P INT
Know YourPlansIf you’re like most owners, yourto-do list is filled with customers,team needs, and day-to-dayoperations, leaving little room foryour future. Running ahorticulture business is a 24/7,365-day commitment, and theidea of “planning your exit” caneasily fall to the bottom of the list.At some point, every owner needsto stop and reflect: Why did I startthis business? Or for second- orthird-generation owners: Why didI say yes to continuing the familylegacy?In the end, we all work to live—not live to work. And when it’stime to transition—by choice orby chance—having a personalfinancial plan and a well-structured business exit planensures you’re positioned to getthe most from what you’ve built.
“We all workto live, not liveto work.”Nearly half of owners do nothave a business valuation orland appraisal47%We asked owners how prepared theyare to exit, what strategies they havein place, and how external factors areshaping their timing. The results reveala mix of intention, hesitation, andmissed opportunities—particularlyaround business value and readiness.Findings: On average, survey respondents ranked personal financialreadiness a 6 out of 10. The average response remained unchanged from2024. Considering the past two years were strong for the industry, the lack ofmovement may signal that owners had little time to focus on personalplanning. It may also suggest something more concerning—a lack ofunderstanding around business value and the financial gap that could standbetween retirement goals and reality. Question: On a scale of 1 to 10, specify how financially prepared you are toexit your business.Financial ReadinessFindings: Just 39% of owners have acurrent business valuation, and only 36.5%have a land appraisal. Nearly half, 47%,have neither. That means owners don’tknow what their business is worth today,making it nearly impossible to evaluate anunexpected offer or to calculate how closethey are to a financially secure retirement. Question: Have you had a business valuation or land appraisal in the pasttwo years?THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
“Most ownersagree thathaving an exitstrategy is apriority.”Findings: Encouragingly, 58% say they do. But the quality of those plans isunknown, and without a recent valuation, any estimate is just a guess. Findings: While 55% of respondentssaid they’ve calculated theirminimum price, 61% still don’t havea firm estimate of current businessvalue. That disconnect is worrying.How can you define your financialfinish line without knowing whereyou’re starting? This also raises thequestion: Are owners consideringcreative strategies, like keeping andleasing land back to the new ownerto generate passive income inretirement? Question: Have you calculated a “minimum purchase price” to fund yourpost-exit lifestyle?How can you define yourfinancial finish line withoutknowing where you’re starting?Question: Do you have a plan for filling the gap between the value of yourbusiness and your retirement needs?These kinds of tactics can significantly close the financial gap—but only if thenumbers are known.Exit StrategyQuestion: Do you have an exit strategy forwhen you will leave your business?Findings: Nearly half of owners (48%) have anexit strategy, while 52% do not. Among thosewithout an exit strategy, most agree it is a priority:34% call it a moderate priority, 35% a highpriority, and 19% a very high priority. Less than3% consider it a low or very low priority. THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
High priorityTiming of ExitQuestion: What is your horizon to transition or exit from the business?1 in 4 ownershave changedtheir timingfor exit giventhe currentenvironment.Findings: Despite age demographics skewing older —29% ofrespondents are between 60-65 and 31% are over 65—the horizon for exitremains long. Only 36% expect to exit in the next 2-5 years. Another25% anticipate exiting in 6-10 years, and 23% say more than a decade. These timelines may reflect the mindset of the horticulture owner,where, like farming, the work is not just a job but a way of life. Long daysand hard work are the norm.But they may also reflect a reluctance to letgo, or a lack of clarity on the next steps. We also asked whether the current politicaland economic environment has impactedowners’ timing. The answer was yes—1 in 4owners have changed their planned exittimeline, with 12% delaying their exit by fiveor more years. Baby Boomers in particular,were most likely to push their exit furtherinto the future. The intent is there. But without taking action to make a documented plan,the path to exit is longer, riskier, and potentially less rewarding. 34%35%19% Moderate priorityVery high priorityAmong those without an exit strategy, most agree it is a priorityTHINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXIT
Creating an exit strategy doesn’t have to take years. But it does require astarting point: a business assessment or valuation. That number—the real,current value of your business—is the foundation of your plan. It helps defineyour Freedom Point and tells you what gap, if any, you need to fill.Whether your exit is two years away or ten years, the most important thing isto begin. Start where you are. Work with what you have. And remember—yourhorizon will shape your next steps, your activities, and ultimately, your asking price.Too many owners are guessing at their future, without clear numbers or astructured plan.SuccessionQuestion: If you have family interested in taking over your business,who are they?Findings: More than half of owners(54%) said no family is interestedin the business, up 4% from 2024.Of the 46% of owners who do haveinterested family, 49% have notstarted succession conversations.Even if your horizon for exit is stillyears away, succession planningstarts with dialogue.54%of owners have nofamily interested inthe businessPassing down your knowledge, introducing your successors to key businessrelationships, and involving them in strategic decisions takes time that willpay off in stability and continuity.THINGS TO KNOW FOR A SUCCESSFUL TRANSITION OR EXITTHE P INT
“The bestinsightdoesn’t comefrom onesource—itcomes from aconnectedcommunity.”Advocacy &EducationThe guiding principle behind this year’s survey is simple: Invest your timewhere you can have impact.Leave the lobbying to the experts and the debates on Capitol Hill to theassociations and advocacy groups that represent horticulture at the highestlevels. As a business owner, your energy is better spent on the parts of yourbusiness you can control—your customers, your team, and your operationaldecisions.To understand how owners are navigating uncertain times, we asked: Question: Where do you turn for industry insights and guidance on criticalissues impacting your business and the industry?Findings: Respondents revealed they don’t rely on just one source—but insteaddraw insight from a combination of trusted channels. The most commonlyselected sources were:Professional networks and peer groups (63%)Industry and trade associations (62%)Trade publications and websites (60%)Outside consultants and business advisors (52%)Trade shows and conferences (49%)This interconnectedness is a strength. When ownersengage across these sources, they gain a more completepicture—one that’s timely, relevant, and actionable.
Engaging in advocacy doesn’t have to mean lobbying. It can be as simple asshowing up at a conference, on a webinar, or in a member meeting. Or taking15 minutes to email your local representative about a policy that impacts yourworkforce or supply chain.The stronger our collective voice, the stronger our industry becomes.Engaging in advocacy doesn’t have to mean lobbying. It can be as simple asshowing up at a conference, on a webinar, or in a member meeting. Or taking15 minutes to email your local representative about a policy that impacts yourworkforce or supply chain.The stronger our collective voice, the stronger our industry becomes.Their efforts are not small.These organizations investmillions of dollars annually tofight for your interests andensure your voice is heard onkey issues like immigration,tariffs, and climate. They alsoprovide webinars, newsletters,tools, and reports to keep youinformed—resources thatmany owners say they rely onto stay ahead of change.If you’re not actively usingthese resources, it’s time tochange that.Professionalnetworks andpeer groupsIndustryand tradeassociationsTradepublicationsand websitesOutsideconsultantsand businessadvisorsTradeshows andconferences63%62%60%52%49%The OwnerAssociations like AmericanHort and the Farm Bureau play a vital dual role inthe industry: they advocate at the federal and state level on your behalf, andthey educate the industry on shifting policies, regulatory requirements, andbest practices.
Industry education and advocacy are not nice-to-haves—they are essentials. And they arealready working hard for you. Make sure you’re leveraging them.Attend at least one trade showor conference per year.Block time monthly for webinars,newsletters, or podcasts.Become a member of our industry’sleading trade associations.Follow trusted sources like Meister Media’sGreenhouse Grower (greenhousegrower.com).Collaborate and learn together with PeerGroups that are available in the industry,such as Next Level Nursery Group(nextlevelnurserygroup.com)Reach out to local extension offices or aguniversities for expertise and research.Tap into resource libraries from transition andsuccession experts like PivotPoint BusinessSolutions (pivotpointbizsolutions.com).And don’t forget—you’re your ownbest advocate. Use your voice. Yourrepresentatives work for you.“Advocacyworks bestwhen we allshow up—together.”THE P INT
Every owner will exit their business—either by choice or by chance.Exiting by choice means setting a future date and working toward it withintention. Exiting by chance, on the other hand, is triggered by forces beyondyour control. It rarely follows your timeline—and it’s never convenient. While most owners believe they’ll choose when to transition, the reality isdifferent. Health issues, shifts in the market, or an unexpected offer can fast-track the decision. That’s why planning for both scenarios—intentional andunplanned exit—is not just smart, it’s necessary.Q: What are the top 3 motivators for selling or exiting your businessunexpectedly?Findings: According to 63% of respondents, the top two triggers for anunexpected exit were: Receiving an unplanned offer they couldn’t refusePersonal or health issues Workforce challenges came in next, selected by 35%—well ahead of financialpressures, environmental regulations, or industry disruption which came inunder 11%.What do these triggers have in common? They’re largely outside the owner’scontrol. That’s why readiness matters. You can’t predict when a health crisis willstrike, when labor shortages will intensify, or when a buyer will knock on yourdoor with a compelling offer. But you can prepare so when the unexpectedhappens, your ready to act with confidence. To help owners get started, our team of Certified Exit Planning Advisors (CEPAs)compiled a practical checklist. These aren’t overwhelming “someday” goals.They’re manageable actions you can take today to strengthen your exitreadiness and protect your business, your team, and your legacy. Be Ready! A Checklistfor the Unexpected
Know what yourbusiness is worthYou likely know the value ofyour home and your retirementaccounts. Don’t overlook yourbiggest asset. A businessvaluation or businessassessment is a crucial first steptoward planning your financialfuture.Separate yourselffrom your businessDelegate early and often. Builda leadership team that canoperate without you. Empoweryour employees. The more thebusiness can runindependently, the morevaluable and resilient itbecomes. Build youradvisor benchIf you don’t already have afinancial advisor, accountant/CPA,or attorney in your corner, now’s thetime. These three professionals canaddress most of your exit andretirement needs. A Certified ExitPlanning Advisor (CEPA) can be theteam’s quarterback coordinatingyour team and making sure yourpersonal, financial, and businessgoals are met.Prioritize yourwell-beingHalf of all business exits areinvoluntary. Take the vacation.Step away. Prepare for your nextstage of life by making sure youare heading towards something—time with family, travel,charitable giving, or pickleball—rather than being pushed out.Start Now. Stay THE P INT Build YourAdvisor Bench
(Click Me)
Know WhatYour Businessis Worth(Click Me)
Separate Yourself From Your Business(Click Me)
Prioritize YourWell-Being(Click Me)
A business continuity plan(BCP) protects your business toweather short-term disruptions.A well-crafted exit plan ensuresyou can act decisively when thetime is right—or necessary. Understandcustomers—deeplyUse qualifiable and quantifiabledata, not gut instinct, to guidedecisions and strategy. Diversifyyour revenue base and monitorcustomer concentration toreduce risk and increase long-term value.Clean up yourfinancialsClear, organized financialstatements are a buyer’s firstimpression of your business’shealth. A strong track record ofpre-tax profits can significantlyincrease your business’s value. Have a planand back it upTalk to yoursuccessorsYour business is a family asset!Succession is not a one-timeconversation—and it is oftenuncomfortable to talk about.Open communication earlywith family or management toalign goals, avoidmisunderstandings, and ensurea smoother transition when thetime comes.Ready. Because “by chance” might come sooner than you think. Have a Plan and Back It Up
(Click Me)
Understand Customers—Deeply(Click Me)
Talk to Your Successors(Click Me)
Clean Up Your Financials(Click Me)
“In the end,a successfulexit isn’t justabout whatyou’ve built—it’s aboutknowingwhen, how,and withwhom you’llpass it on.”And that’s what this report is all about—refocusingyour attention on the areas where your effort willpay off.You don’t need to have everything figured outovernight. But you do need to start. Make the callto your financial advisor. Schedule the valuation.Have the conversation with your managementteam. Block the time on your calendar to work onthe business, not just in it.Because whether you plan to exit in 2 years or 10,the best time to prepare is when you still haveoptions—and energy.Let the findings in this report guide your next steps.Use them to spark discussion with your team, yourfamily, and your advisors. Most importantly, usethem to take back control of your exit timeline—and your legacy.ConclusionIf there’s one lesson to take away from this year’s report, it’s this: while there’sa lot happening in the world that you can’t control, you have far more powerover your future than you think.From customer loyalty and team development to operational efficiency andpersonal financial readiness, the 2025 survey findings show clear momentumamong owners who are taking action.
At PivotPoint, we understand entrepreneurs because we are entrepreneurs. Our team has bought, sold, merged, and managed multiple family-ownedbusinesses. We’ve lived the highs and lows of ownership: the late nights, the harddecisions, the proud milestones. We know what it means to grow a business thatnot only provides for your family but also creates opportunity for others.We also understand what it means to let go—how difficult it can be to exit abusiness you’ve poured your life into. That’s why our motto is exit without regret.For us, that means helping owners leave on their terms, knowing their business,their team, and their customers are in good hands. It means preserving thelegacy of great products, exceptional service, and long-term value.Helping owners reach that point requires a blend of strategic growth andthoughtful exit planning—areas where PivotPoint excels. We work closely withour clients to clarify goals, build value, and design a path to transition thatreflects both the heart and the numbers behind the business.Our expertise in the horticulture industry runs deep. We proudly partne rwith the sector’s top specialists, including BEST Human Capital & AdvisoryGroup, Hathaway & Lane Direct, and Advanced Grower Solutions. We alsocollaborate with financial planners, attorneys, accountants, insurance providers,and brokers who bring unique horticulture experience to the table.As your lead advisor, PivotPoint acts as the quarterback of your planning team,coordinating resources and strategies for a cohesive, holistic approach tobusiness transition. As a supporter of AmericanHort, we are also committed toeducation and sharing insights that help owners strengthen and reparetheir businesses for the future.We are proud of our entrepreneurial roots and equally proud to walk alongsideother business owners as they write the next chapter of their story.To learn more about PivotPoint Business Solutions, our advisory team, or toaccess our library of complimentary assessments, articles, eBooks, and blogs onbusiness growth and exit planning, visit us at www.pivotpointbizsolutions.com.EXIT WITHOUT REGRET.About PivotPointBusiness SolutionsWE ARE ENTREPRENEURS.PROVIDES FOR YOUR FAMILYLEGACYHEART NUMBERSQUARTERBACK OF YOUR PLANNING TEAM,STRENGTHENPREPAREWRITE THE NEXT CHAPTER OF THEIR STORY.PROUDLY PARTNER
Appendix
What sector(s) of horticulture describes your businessor the businesses you serve? (select all that apply)Landscape horticulture (garden design, plantselection, and landscape constructionWhat generation owner are you?If greater than fourth generation,please specify generationRespondent ProfileAre you a grower, retailer, both, amanufacturer, supplier, or other?What is your position in the businessWhat is your age?How many years have you owned orbeen in the business?
Does the owner's last name appear in your business name?How many years has your company been in business?What is your corporate structure? How is your business organized?Outside ownership/ partners/investors (non-family)
Pulse QuestionsSelect the top 3 issues created by the new administration's policies, orcurrent economic conditions, that you are most concerned about?What are the top 3 impacts you expect to see on your businessfrom the current administration's policies?How easy or difficult is it to access capital for operational investments?Have not tried to secure fundingfor operational investmentsIf you have pursued funding for operationaintend to utilize the funds in your busineIf you were able to secure funding, where(select all that apHave current market or economic conditionstiming of your exit from you
l improvements, how did youess? (check all that apply)e did you secure the funding?pply)s or uncertainly affected theur business?How much have you moved up (accelerated) orextended (delayed) your exit or succession?Select your top 3 motivators for selling or exiting your business unexpectedly?Where do you turn for industry insights and guidance on critical issuesimpacting your business and the industry? (select all that apply)
Know Your CustomerWhat was your annual revenue last year?What percent of your overall revenue did your largest customer represent last year?
How do you most often measure customer satisfaction?What % of revenue is "recurring" (recurring revenue is an annual contract or subscriptionfor products/services whereby revenue flows to your business on a scheduled basis)
Know Your People and ProcessesHow ready do you feel your business is to transition to a new owner or buyer?Is your management team aware of your plans?Do you have a plan to inform employees about the decision to exit the business?How many consistent, full-high seSelect the top 3 business isincrease the value of yoRate the technology/softwa
-time employees do you have in youreason business?sues you feel you need to focus on toour business to a potential buyerare/systems you use in your businessThe documentation of our systems and processes foroperations, human resources, and administrative functions are:What was your average pre-tax profit over the past three years?
Know Your LimitsHow would your business perform if you were out of action for 3 months and unable to work?Who do you consider to be your most trusted advisor?What % of your time do you spend on the following activities in your business? (must total 100%)StrategySalesMarketingCustomer ServiceFinancial ManagementHR & People DevelopmentOperations/ProductionOther
When was the last time you took a vacation from your business that was 2 weeks or longer?Using the scale below please share how ready you personally feel to exit your business?
Know Your PlanDo you have an exit strategy for when you will leaveyour business? (if no, go to question 13)If you have family interested in taking over yourbusiness, who are they? (check all that apply)What is your horizon to transition or exitfrom the business?Do you have an estate plan?Do you have a plan for filling the gap between the value ofyour business and your ideal number for retirement?Have you calculated a "minimum purchase price"needed from a buyer to fund your post-exit lifestyleand retire without regret?
Have you had a business valuation or land appraisalprepared in the past two years?Using the scale below, please specify how financially prepared you are to exit your business?Using the scale below where would you, or your owner, prioritize having an exit strategy on the priority list?If you have family interested in taking overthe business, have you started havingsuccession discussions?
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