Succession Planning

One of the principal problems with business transfer is that succession planning often takes place too late or at crisis points. Many UK businesses have no succession plan, often as a result of the time pressures on owner-managers.

Foreword by Martin Wyn Griffith of The Small Business Service in their paper published in 2004, “Passing the Baton – encouraging successful business transfers.”


Succession planning is a process for identifying and developing new leaders who can replace old leaders when they leave, retire or die.


In Passing the Baton published in 2004, it was estimated at the time there were 4 million SMEs in the UK and that 40% of these would face some sort of succession issue over the next 10 years. This was largely due to the baby boomer era, with business owners in their late 50s and 60s now approaching retirement.


In June 2008 the world economy went over ‘the edge of a cliff’, led by the banking crisis, and we entered a period of recession and continuing economic uncertainty. The number of corporate transactions declined rapidly.


In January 2020 the world was struck by the Covid-19 pandemic. This has severely impacted many local economies around the globe. In many countries, businesses were forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Many business owners are tired and have had enough with this major social and economic impact. There is probably almost certainly, therefore, a pent up supply of businesses with succession issues still to be faced. Where, of course, there is excessive supply in any market, price is consequently affected adversely.

Official data on the success, or otherwise, of business successions is lacking, relying on estimates from large-scale surveys. However, they all have a common message that only 5 -15% of family businesses reach the 3rd generation. The reasons for failure are numerous, but the evidence suggests that lack of succession planning is the factor most commonly identified with succession failure.


Equally unfortunate is the results of a survey by The Value Builder Team, of business owners who have sold their businesses, which reveals that 75% regret their decision to sell their business within 1 year.


If you would like a copy of “Passing the Baton” then call us on (0161) 242 7189


If you want to leave your business with no regrets please watch our video Intro to PREScore and then click on the link below to complete your own PREScore to see how ready you are personally to exit your business.


If you want to find out how valuable your business is and whether it is sellable in its current state, please go to our page on BUSINESS VALUATIONS

The Benefits For You

A successful transfer of the business to the new owner and leave with no regrets;

Maximising the value of the business you achieve from the sale;

Minimising your tax liabilities, including any capital gains tax;

Ensuring the continuity of your businesses and your teams' employment, who for many business owners have become part of their extended family as their business has grown and developed.

If you would like to find out how we can help you or your business please call us now.