Is Your Business Ready If You Had to Walk Away Tomorrow?

You have poured your life and your energy into building your business. But ask yourself this: if you had to step away tomorrow, what would happen? 

Rather than seeing it as a strategic business decision, many small-business owners put off succession management for a rainy day. But whether you are preparing to exit in four years or 40, you should consider how you’d handle the "Five Ds": Death, Disability, Divorce, Distress, or Disagreement. These events don't just threaten your day-to-day operations, they can radically alter the destiny of the business you've worked to create.

Not sure where to begin? Here’s a blueprint to help you start moving forward.^1,2

1. The Succession Cabinet

Creating a succession approach is a team sport. On your team, you should consider having tax, legal, and financial professionals who can help to align your "Day After" exit strategy with your overall financial goals. 

Pro Tip: Ask a lot of questions. If a professional slips into jargon, don’t be afraid to ask for more information.

2. Understanding Valuation

There is sometimes a difference between the value you feel your business is worth and the price a buyer is willing to pay. To arrive at a price, a potential buyer may look at some hard figures, like your company’s EBITDA (earnings before interest, taxes, depreciation, and amortization). A buyer may also look at other measures like the value of existing contracts, or the company’s reputation in the marketplace. Arriving at a valuation is a process that can take some time.

3. The Runway

Some business owners wake up one day and say, "It's time.” Others put things in motion several years ahead of time. Either approach is OK, but a wake-up and go decision could narrow your options. If you plot out a longer-term strategy, you can pursue some decisions that might influence how the business is viewed. For example, given the time you may be able to "de-risk" the company. In some cases, that may mean removing your personal brand as the sole driver of the business or creating systems that could easily be handed off to function without you.

Did You Know: About 20 percent of small businesses are named after their founders. That may be a risk to consider “de-risking” if too much of the firm’s identity is wrapped up in the company’s name.³

4. Transition Strategy

Every transition involves risk. How will customers react to change? How will employees respond? Consider having a member join your succession cabinet who can help you anticipate these types of questions and give you strategies for how to answer them. Often, the difference between a smooth transition and a turbulent one comes from giving thoughtful attention to such details.

When it comes to the future of your business, creating a strategy now can give you the one thing every business owner craves: control. Don't let circumstances decide your legacy. Put a strategy in motion that’s designed to help protect what you’ve built.

<sup>1. JPMorgan.com, 2026
2. Chase.com, August 7, 2025
3. AEAWEB.org, 2026</sup>