My female clients tend to climb corporate ladders, save and change lives as physicians, or execute highly successful law practices – but rarely are they business owners.
I’ve assisted many clients in marketing and selling incredibly successful businesses. However, when I look back at those clients, very few are women.
It got me thinking: is this simply my experience or a reality?
A 10-year study by Buzzacott, an accounting firm based in London, found that only 1.37% of business sales in the United States are of female-owned businesses. When those businesses go to market, female owners receive, on average, 30% less than equivalent male-owned businesses in the same sector.
In today’s terms, we call this an “exit gap.”
Lien De Pau, a Forbes contributor and founder of The Big Exit, explores this disparity and how female-led businesses can overcome this systemic bias. Based on her experience in assisting in these exits, there are two keys for women to consider when selling their business:
- Seek out an independent valuation of the business. Understand what goes into that valuation and if there are any shifts that could be made to change the valuation.
- Connect with female-led communities of business owners and private-equity firms that can provide a resource for business owners looking to remove gender from the equation.
Over the past two decades, the number of women-owned businesses has increased by 114%. Today, almost 42% of all American business are owned by women.
As women begin exiting those businesses, the exit gap is a huge consideration. Educating ourselves and surrounding ourselves with incredible advisors will be key to maximizing value.
© 2025 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment adviser does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified.
Trademarks and copyrights of materials referenced herein are the property of their respective owners. Index returns reflect total return, assuming reinvestment of dividends and interest. The returns do not reflect the effect of taxes and/or fees that an investor would incur. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. An index is an unmanaged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise.
