A new Wilmington-based startup has launched in the Port City. 

IQExit serves business owners and advisors seeking succession or exit plans. The company uses an artificial intelligence-based algorithm to generate an Exit Readiness Report, outlining a business's exit strategy. IQExit was cofounded by Tully Ryan, who also serves as the company's CEO, and formally launched on Feb. 6.

“Only 25% of businesses that go to market actually have a successful transaction or transition,” said Ryan, “which is a terrible stat.”

Ryan has 10 years of experience in mergers and acquisitions and is managing director at Murphy Business, a Florida-headquartered business brokerage firm.

Ryan said the impetus for IQExit stems partly from the fact that 30% to 50% of generational wealth transfer is tied to business equity. 

"By year 2030, there will be over 71 million Americans over age 65, and a projection of the largest intergenerational wealth transfer is happening as we speak,” he said. 

To improve business ownership transitions, IQExit prepares business owners and advisors with an Exit Readiness Report based on company metrics, including the last three years of revenue, to better position the company for a successful transaction. 

The report includes a deal range and lists comparable company benchmarks, allowing owners to see what similar companies have achieved, Ryan said. It estimates market value across low, median and high scenarios “based on prevailing private-market conditions,” according to a news release, and includes early planning signals for owners to determine when it’s time to move to the next step.

“Ownership transitions don’t fail because of pricing or because advisors lack skill,” Ryan said. “They collapse because engagement begins too late. If we can move clarity forward by even a few months, outcomes change.”

Through licensing agreements with a financial provider’s advisory suite, IQExit is designed to be “self-serve” and provided free to business owners, the release said. 

“We are a neutral platform. We are not incentivized by deals, we’re not incentivized by transactions, we’re not incentivized by speed,” Ryan said. “We’re an intelligence platform. We’re monetizing solely based on subscription agreements or licensing.”

IQExit is self-funded and, in its first year of operation, will focus on refining its concept rollout through individual subscriptions and licensing agreements, with the eventual goal of raising capital to scale, according to Ryan. The company currently has four employees, including Ryan, all of whom are the company's founders. 

“Wilmington has really built kind of an ecosystem within itself,” said Ryan in reference to the city’s growing technology landscape. “That’s really where we want to be – part of that culture, part of that ecosystem. We think Wilmington is a great place for that.”