Passing the Baton: Putting the “Success” in Succession Requires Careful Planning & Strong Collaboration

According to a 2022 LOCUS Impact report, Florida is set to witness an $884 billion wealth transfer by 2032. A major part of that wealth transfer will take place as business leaders sell or hand down ownership of their businesses. According to the Exit Planning Institute’s (EPI) 2025 Generational State of Owner Readiness (SOOR) National Report, 75% of business owners would like to exit their business within 10 years. In Florida in particular, 40% of business owners have plans to retire in the next decade. As many business owners find out, however, selling a business is a completely different animal compared to just thinking about doing so.

The succession planning gap

The number of business owners well-prepared for succession  has improved in recent years—but a significant gap remains. The latest data from the EPI suggests that business owners across generations agree that having an exit strategy is important for their future and the future of their business. But it also highlights that less than half of Baby Boomer and Generation X business owners have a personal and business transition plan, and just more than half of Millennials have personal and business transition plans.

It is worth noting that the succession planning gap has closed over the past decade. While that number holds true for Baby Boomers in the 2025 Generational report, Generation X and Millennial business owners are prioritizing succession planning. The gap, however, is still far too wide.

How business owners can bridge the gap

Succession planning can seem daunting, but carving out time to focus on the important elements can go a long way in actually taking action to develop a plan.

• Get the finances straight
  • Before taking any other steps in the succession planning process, the most important thing a business owner can do is make sure they have the latest picture of their business’s finances. Knowing key numbers like revenue, expenses, specific operational costs and any debts ensures that businesses are prepared to tell their business story when looking for a buyer or setting up a family member for success in taking over the business.
• Know the value of the business
  • For many small business owners, their business is a valuable part of their life. When thinking about succession planning, it is crucial that business owners are aware of what the value of their business is to others. Working with an experienced commercial banking team can help business owners get a firm idea on the fair market value of their company. In some cases, seeking insights from other business owners in the same region or industry can also help paint a picture of the market for selling one’s business.
• Evaluate the options
  • There are a number of options for business owners looking to transition out of their role. Passing the business down to a family member or multiple family members, identifying a non-family member—whether they are already an employee or may be an external player familiar with the business—to take over, or selling the operation to another business are all options. In the past decade or so, seeking a private equity firm to buy the business has also become a common, viable option. Depending on the desired timeline, a business owner can certainly change their mind on their preferred strategy but knowing which of these options is the desired outcome can help determine the appropriate steps to take when it comes time to transition out of being a business owner. Employee Stock Ownership Plans (ESOPs), a qualified retirement vehicle that gives employees an ownership stake in the company, may be another option worth considering as part of a broader succession plan.

Succession planning doesn’t have to be a solo task

Being a business owner is time-consuming, often requiring individuals to wear multiple hats simultaneously. This is precisely why many business owners delay succession and exit planning, using  excuses that they are too busy and/or too young to start the process. This couldn’t be further from the truth, but it is a common misconception among Florida business owners, with only 20% of them having  a formal succession plan.

Succession planning doesn’t have to be a time-consuming task, so long as one starts the process early enough. Even if the business is not intended to be sold in the near term, the process of readiness will generate opportunities for operational, technological and financial improvements.

Moreover, working with a trusted advisor and commercial banking partner can help lighten the workload of succession planning and will help ensure that business owners are ready to enter their next chapter while entrusting the current and future value of the business to those best equipped to manage it. The commercial banker has access to a plethora of resources to help with business valuations and has an extensive network of subject matter experts who all work together to help business owners meet their goals, both from a business and wealth perspective.

Kevin Gillen is Market Executive at Synovus Bank covering Orlando and Central Florida.

Brent Suriano is Director of Private Wealth (Florida) at Synovus Bank.