Before You Sell, Ask If Your Business Can Survive Without You

Forbes

10-08-2025

There's a moment every founder eventually faces: the realization that they won't always be at the helm. For some, it comes with the thrill of a pending sale. For others, it arrives more gradually, through shifting priorities or generational change. In either case, how a founder exits their business says as much about their vision as how they built it.
Yet most never make it that far. According to the Exit Planning Institute's most recent national survey, only 42% of business owners have a formal, written transition plan in place. That lack of preparation can stall sales, create internal instability, and ultimately jeopardize the future of the business.
Succession planning serves as a critical safeguard for everything a founder has built. It provides structure in moments of transition, clarity in times of uncertainty, and a long-term path forward for the people and priorities that matter most. Without it, even the most promising ventures can lose direction the moment their founder steps away.
Start early, not urgently
One of the most common mistakes founders make is waiting too long to plan. Succession isn't something to tackle once retirement is six months away or when a partner unexpectedly steps back. The most successful transitions are often those planned years in advance, with robust frameworks, such as buy-sell agreements or well-structured trusts, to clarify how the business will be valued and transferred when the time comes.
These structures do more than document a plan; they preserve relationships, reduce uncertainty, and help prevent chaos during personal or professional pivots. If a founder waits for the transition to feel urgent, the advantage has already been lost.
Valuation reveals the full value of what you've built
Figuring out what a business is really worth during a transition is rarely straightforward—and often overlooked. Founders sometimes lean on outdated numbers or quick formulas that miss the real value they've created. But when the time comes to step away, a careful, expert-led valuation can make all the difference in ensuring a fair and seamless handoff.
'Beyond the numbers, we look for the full picture,' says Thomas A. Greenwald, a family law attorney at Goranson Bain Ausley who frequently handles high-net-worth business asset divisions. 'That means understanding brand value, customer relationships, intellectual property, and the less visible assets that drive long-term success. If those factors are overlooked, you risk undervaluing the legacy you're trying to preserve.'
Greenwald's perspective reflects a broader truth: Valuation is about more than financial statements. Intellectual property, brand equity, customer loyalty, vendor contracts, and even company culture often contribute value that won't show up on a balance sheet. These elements are especially critical in family-related transitions, where fairness and clarity are essential.
Getting the valuation right ensures that a founder's exit honors the full scope of what they've built, and gives everyone involved a clear, confident path forward.
There's more than one way to exit
Many founders default to the idea of selling the business outright, but that's far from the only option. Internal buyouts, phased transitions, and co-ownership arrangements are often better aligned with preserving operational continuity and core values.
Some founders choose a phased exit and stay on as an advisor while gradually handing over responsibilities. It's a way to pass down not just leadership, but institutional knowledge and culture. Others shift ownership to family members or longtime employees, using thoughtful, tax-aware planning to protect both the business and the people involved. What matters most is exploring these options early, while there's still room to plan with intention rather than pressure.
Planning with people in mind
Business transitions often stir up more than operational changes. For many founders, stepping back means reshaping their daily lives and sense of purpose. That shift can be hard to navigate without a plan that considers the people involved as much as the process.
Clarity and communication go a long way. When a transition is handled with care, it can preserve relationships, steady the team, and keep the business moving forward. What matters most is preserving the core of the business while leadership shifts.
Thinking ahead in an evolving landscape
Succession planning is no longer just a retirement exercise. Today's entrepreneurs face emerging complexities: digital asset protection, continuity in remote operations, evolving tax laws, and more. Waiting for a major life event to trigger planning increases both risk and complexity.
Proactive transition planning shows investors, teams, and future leaders that the business is built for longevity.