Why owners often leave succession too late and why the clock runs longer than they think

Most owners intend to “sort succession next year.” Many don’t consider at all until a trigger forces it: a health scare, a key hire leaving, a buyer call, or family dynamics coming to a head. By then, options are narrower, valuation risk is higher, and the timetable is no longer yours.

The preparation gap (it’s real, and measurable)

Independent UK research shows 69% of family business owners have no documented succession plan, and only 32%have an up-to-date will. It is understandable and a natural by-product of founders who spend their energy serving customers and protecting jobs. But it leaves businesses, and families (owner and employee) exposed when events accelerate.

Professional bodies and advisers are consistent on timeframes. The Institute of Directors advises owners to start planning several years before an intended sale or transition. PwC recommends allowing 12–24 months just for an exit process (on top of prior grooming). And ICAEW guidance highlights that buyers typically scrutinise three years of clean financial performance and supporting records. These are soft gates that catch many owners by surprise.

Why owners delay (behavioural + practical)

• Identity and optimism. Owners often are the business; optimism bias (“one more good year”) and loss aversion (“don’t leave value on the table”) nudge decisions into the long grass, until a shock arrives.

• Perceived complexity. Governance, tax, family/employee and leadership questions feel tangled; without a neutral facilitator, conversations stall. Family Business UK’s materials show how even large, sophisticated firms need structure to make progress.

• Underestimating the runway. Building a credible successor bench, re-papering key contracts, cleaning data, and demonstrating repeatability take time, usually measured in years, not weeks.

What “the long clock” actually covers

• Leadership & culture: identifying and developing successors, shadowing periods, handover of external relationships, and clarifying family vs. business governance.

• Evidence & buyer readiness: three years of monthly MI, clean revenue recognition/WIP, customer concentration mitigation, and assignable IP/contracts.

• Stakeholder confidence: communicating the plan to staff and key customers at the right time reduces churn and protects value.

What good looks like

1. Start before you must. Put a date in the diary 24–36 months ahead to decide the path (family succession, MBO/MBI, staged sale). IoD and PwC both argue for multi-year horizons for a reason.

2. Run a light readiness review. Map value risks (key-person, concentration, weak MI), assign owners, and time-box fixes over 6–12 months. Buyers will revisit these in diligence—better they find improvements, not gaps.

3. Name the people plan. Identify successors (internal or external), define development steps, and agree the handover cadence. Governance beats hope every time.

4. Sequence the communications. Decide who hears what and when; family, board, leadership, staff, customers. Transparency at the right time preserves morale and reduces rumours that spook markets and teams.

Bottom line

You don’t need to have all the answers today. But if you’re within a two-year horizon, you do need a plan and a timetable, because building the evidence and confidence for a smooth handover is what takes the time. Start early, keep it people-centred, and let the preparation widen - not narrow - your options.

For a free succession readiness check, give us a call at Oakmere Partners, we will quickly assess where you are and share some useful tips on how to make the most of the business you have spent years building.