Every business will eventually transfer at some point in time. The question small business owners need to ask is, will it transfer voluntarily or involuntarily?
This question introduced our succession planning workshop last week, co-hosted by First National Bank of Oklahoma and Oklahoma Financial Center. Many of our predominantly small business owner clients are actively thinking about transitioning their business, a decision tree that includes leaving the business to family or key employees, or selling the business outright. The conversation was candid, practical, and at times uncomfortable. Here are the key takeaways we think every business owner should hear, whether you're five years from an exit or twenty.
Get Your Financial House in Order — Now, Not Later
If you're even thinking about a future sale or transition, your financial statements need to be current, accurate, and prepared using GAAP accounting standards. Buyers and their advisors will scrutinize your numbers, and financials that are incomplete, outdated, or prepared on a cash basis can stall a deal or reduce your valuation. Clean financials are the foundation everything else is built on.
Assemble Your Deal Team Early
Succession planning isn't a solo endeavor. The owners who navigate transitions most successfully bring together an experienced team — a CPA, an attorney, a banker, financial advisor, and a succession consultant — well before they need one. Each brings a different lens, and the coordination between them matters. Trying to assemble that team under the pressure of an active deal is like building the plane while you're flying it.
Stay Organized and Start Planning Today
A recurring theme was simple but powerful: failing to plan is planning to fail. Attendees worked through a "Business Succession Snapshot," a 20-question self-assessment designed to help owners gauge where they stand on their succession journey. Most discovered gaps they hadn't considered — but awareness is the first step, and every gap is an opportunity to get ahead of the curve.
Your #2 Should Already Be in the Seat
Whether you're selling to a third party, a family member, or a key employee, buyers want to see that the operation doesn't depend entirely on you. Your successor should already be identified and functioning in a leadership role before you go to market. A business that runs well without its founder is worth meaningfully more than one that doesn't.
Take Care of Your Key People
Your best employees know when change is coming. Put incentive structures and retention plans in place to keep your key people engaged through a transition. Losing critical talent during a sale can erode value quickly and spook a buyer.
Introduce Your Successor to Your Capital Partners
This one is often overlooked. If you're transitioning to a family member or key employee, start introducing them to your banker, investors, vendors, and major customers months — if not years — in advance. Those relationships take time to develop, and a warm handoff goes a long way toward ensuring continuity and confidence on all sides.
How We Can Help
This event was co-hosted by First National Bank of Oklahoma and Oklahoma Financial Center. Our firms work with business owners at every stage of their journey — from early growth through exit, with an emphasis on developing sound business plans that are achievable and have a high probability of success. If you're starting to think about what succession looks like for your business, we'd welcome the conversation. Reach out to our team to talk through where you stand and how we can help you plan for what's next.