20 Golden Nuggets - Succession

Choosing who will take over your business is one of the most significant decisions in your exit journey. Many owners dream of keeping the business in the family, but this isn’t always the best option. You need to weigh family dynamics, competency, and the long-term health of the business.

If you’re considering passing the business to a family member, ask yourself - Are they ready and willing? Do they have the skills to lead, or would you be setting them up for failure? Alternatively, does your management team have the ability to carry the business forward? Selling to your team can ensure continuity, but financing can be a challenge.

Lastly, consider selling to an external buyer. While this might seem less personal, it often yields the highest financial reward and allows you to step away cleanly. The right buyer will have the resources and expertise to take the business to the next level. Each option has its trade-offs—family may offer legacy, the team offers continuity, and an outsider offers financial security. What matters most is making the decision based on what’s best for you, your family, and the future of the business.

Golden Nugget - Choosing the right successor requires objectivity. Base your decision on capability and what’s best for the business, not just family ties.