The Human Element of Succession

Content derived from Industry Expert, Knowledge Workshop, Vicki Massey, Big Impact Group 

Are you truly succession and sale ready as a business owner?

For many, the business is their “baby.” Selling or stepping away may not have crossed your mind. Yet the reality is that every owner will eventually exit their business whether by choice or through circumstances beyond their control, such as illness, burnout, or unexpected life events. However, it doesn’t have to be a stressful or a sudden process. A succession journey can start from the early stage of any business to ensure a smoother and positive transition to set the business and the owner are prepared for what comes next. 

Too often, owners who do sell find themselves facing unanticipated regret, depression, and a loss of identity and purpose. That’s why preparation is not just a financial exercise, it’s a mental and emotional one too. Studies show that 75% of business owners regret leaving their business one year after sale immediately after. Giving yourself time to reflect on your succession journey, how you want to exit, why, and what life will look like afterward is crucial.

Why Owners Exit

• 30% of business exits are planned successions, with clear personal motivators, for example, wanting to cash out a specific amount of money.
  
• 42% of exits are forced by personal crises such as burnout, health issues, stress, or family challenges.
  
• 28% happen when an owner has “personally peaked”succession becomes unplanned due to boredom, wanting to travel, or focusing on health.
  

And the business value on succession correlates to the reasons for exit with the 30% of planned succession having the best results.

Key Considerations for a Successful Succession

1. Financial goals – Do you know your “minimum number”? Have you had your business valued and done the analysis?
   
2. Life and social goals – Have you thought about your purpose and sense of identity beyond your business?
   
3. Post-exit involvement – Do you want to stay connected by mentoring or developing emerging leaders?
   
4. Employee well-being – How will your people be cared for and involved once you exit?
   
5. Ownership structure – Do you own 100%? Could employee share ownership add value and stability? Buyers often see businesses with broader ownership as stronger investments.
   

Exiting your business does not have to be a story of regret. With clarity of vision, purposeful planning, and commitment to implementation, succession can be empowering. By sharing insights into business value and profitability with your team, you not only prepare for your own exit, you also build a stronger organisation with capable leaders ready to carry it forward.