Succession planning isn’t just for big corporations; it’s essential for SMEs and owner-managed businesses, too. Whether you're thinking about stepping back, selling, or passing the reins to someone else, planning ahead helps protect everything you've built.
At Shorts Chartered Accountants, we’ve supported many business owners through this journey. Here are five common myths we often hear from clients — and the truths behind them.
Myth 1: Succession planning is a one-time activity
Reality: It’s an ongoing process. Your business, team, and personal goals will evolve, and your succession plan should too. Whether you're five or 15 years from retiring, starting early gives you more flexibility and better outcomes.
Myth 2: Internal successors are always the best option
Reality: While selling to your internal management team through a Management Buyout (MBO) can be a strong option, it’s not the only route. Trade sales also offer compelling benefits depending on your goals, whether that’s maximising value, preserving legacy, or ensuring business continuity. The right successor isn’t always internal; it’s the one that best aligns with your long-term vision.
Myth 3: It’s easier to just sell the firm
Reality: Selling can be straightforward but it’s not always simple. Trade sales can offer high value but come with uncertainty and loss of control. MBOs and EOTs may offer more certainty and preserve your legacy. The “easiest” option depends on what matters most to you.
Myth 4: Giving up ownership means giving up control and income
Reality: With the right structure, you can step back gradually, retain income, and still have a say. Many owners choose to stay involved in a mentoring or strategic role while receiving deferred payments over time.
Myth 5: Succession planning should start when I’m ready to retire
Reality: Waiting until retirement can limit your options. Starting early allows you to shape the future of your business, prepare your team, and maximise value, without the pressure of a ticking clock.
Final thoughts
Succession planning ensures your business continues to thrive. Whether you're looking to sell, reward your team, or pass the baton, planning ahead is key.
If you're an SME or owner-managed business thinking about next steps, we’re here to help you explore your options and make informed decisions. Speak with Shorts’ Corporate Finance team for a free consultation.
Tags: Corporate Finance
