Login
Every business will eventually transfer ownership at some point. The real question for small business owners is will that transition happen voluntarily or involuntarily?
That question opened a recent succession planning workshop co-hosted by First National Bank of Oklahoma and Oklahoma Financial Center. Many small business owners are actively thinking about how they will eventually transition their business — whether by passing it to family or key employees or selling it outright. The discussion was candid, practical, and at times uncomfortable. Here are the key lessons we believe every business owner should consider, whether you’re five years from an exit or twenty.
Get Your Financial House in Order — Now, Not Later
If succession planning for small business owners is even a distant consideration, financial statements must be current, accurate, and prepared using GAAP accounting standards.
Buyers and their advisors closely review financial records, and incomplete or outdated statements — or records prepared on a cash or tax basis — can slow negotiations or reduce valuation. Clean financials serve as the foundation for every successful transition.
Build Your Succession Planning Team Early
Succession planning isn’t a solo effort. Business owners who navigate transitions successfully often assemble an experienced advisory team well before they need one.
A strong team may include:
- CPA
- Attorney
- Banker
- Financial advisor
- Succession consultant
Each brings a different perspective, and 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 Now
One recurring theme during the workshop was simple but powerful: failing to plan is planning to fail.
Attendees completed a “Business Succession Snapshot,” a 20-question self-assessment designed to help owners evaluate where they stand in their succession planning journey. Many identified areas they hadn’t considered before — but recognizing gaps early creates opportunities to address them ahead of time.
Develop Leadership Before the Transition
Whether ownership transfers to a third party, family member, or key employee, buyers want confidence that the business can operate without relying solely on its founder.
Your successor should already be active in a leadership role before the transition begins. Businesses with strong leadership continuity are often viewed as more stable and may command higher value.
Protect and Retain Your Key People
Employees often recognize change before it becomes official. Incentive structures and retention plans can help keep key team members engaged during a transition process.
Losing critical talent at the wrong moment can reduce business value and create uncertainty for potential buyers.
Introduce Your Successor to Key Relationships
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 First National Bank of Oklahoma Can Help
This workshop was co-hosted by First National Bank of Oklahoma and Oklahoma Financial Center. Our teams work with small business owners at every stage of their journey — from early growth through exit — with an emphasis on building achievable business plans with a strong chance 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.