Navigating Business Succession in an Uncertain Economy
James Zahansky, AWMA®
Principal/Managing Partner, Investment Advisor & Chief Goals Strategist
Kevin T. Lewis
Principal, Rocklobs Advisory
In today's volatile economy, succession planning isn't optional – it's essential. Over two-thirds of small business owners plan to retire in the next two years (Teamshares, 2025), yet a third of all business owners say they have no plan or are unsure about their future (Gallup, 2025). With market swings and shifting policies, the smartest move is to start early and proceed with purpose.
At WHZ, we build succession into each client's overall business and personal financial plan, and we coordinate with other professionals to help maximize enterprise value. One of our partners is Kevin Lewis, founding partner at Rocklobs Advisory, a business broker consultancy that guides clients through the business buying, succession planning, and selling process. Below are the key themes we emphasize with our business-owner clients.
Why It Matters Now
Too few businesses have a documented, communicated plan, and a large percentage of companies listed for sale never find a buyer. That gap is both a risk and an opportunity. In late 2024 through mid-2025, leaders cited economic uncertainty as their top external concern (J.P. Morgan, 2025); a shift that's reshaping exit strategies and timelines.
As Lewis notes, "The most successful exits begin planning years in advance---identify value drivers, address buyer concerns, and structure deals that protect returns and legacy."
How Uncertainty Affects Valuation
Valuation is the foundation of any succession plan---and it's being stress-tested by rate moves, supply chain ripples, and policy shifts. Many owners overestimate terminal value, assume straight-line growth, and expect premium multiples. Timing a sale can be as tricky as timing the market.
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Financing has also tightened: lenders are demanding larger down payments, narrowing the buyer pool. Seller financing can bridge the gap, but it adds risk that must be priced and structured carefully. In uncertain times, however, buyer risk is often reduced by purchasing an existing proven business rather than starting a new one, which can work in sellers' favor.
What to Prioritize
- Operational Excellence: Lean, well-documented operations make a company more resilient---and more attractive. Streamline processes and eliminate key-person dependencies. Standardize KPIs and close the loop on quality, delivery, and cash conversion.
"Grow profit, especially EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortization]; that's what buyers pay for," says Lewis. "Chase investments that boost salability and durable advantages, not just top-line growth."
- Financial Resilience: A strong balance sheet signals health and reduces execution risk for buyers while also improving financing options. Maintain healthy liquidity and disciplined working capital. Keep leverage in check versus industry norms.
"Size matters," Lewis adds. "Reaching a scale that commands multiples above two can materially improve outcomes, especially when buyers are selective."
- Diversified Exit Paths: Family succession is one path—not the only path. Consider:
- ESOPs to reward employees and create a market for shares
- Management buyouts for continuity with leaders who know the business
- Strategic buyers seeking synergies and growth platforms
- Private equity for staged exits and professionalization
The best option depends on your objectives: liquidity, control, culture, legacy, and size of your business.
Building Your Buyer Network Early
One critical aspect often overlooked is developing a potential buyer list well before you're ready to sell. The most successful business sale processes develop a large list of potential buyers and bring them into an active process. This proactive approach creates competition and maximizes value.
"There's a huge benefit to developing relationships with potential buyers early," Lewis emphasizes. "Network now---get a head start on it. Many potential outside buyers are younger business leaders looking for proven opportunities rather than starting from scratch."
This generational shift means that building these relationships years in advance can significantly enhance your exit options and final valuation.
Plan for Policy and Tax Changes
With major provisions of the Tax Cuts and Jobs Act scheduled to sunset after 2025, tax strategy should be part of your timeline. Coordinate corporate structure, compensation, and personal wealth extraction (e.g., dividend vs. salary, earn-outs, installment sales, trusts, and gifting) so your exit plan and estate plan work together.
Lewis's advice: "Apply real investment discipline. Ask: Does this initiative make my business more valuable and more attractive to a buyer---or just bigger?"
The Value of the Right Advisors
Succession is multidisciplinary. You'll likely need: a wealth advisor to integrate business exit with retirement, estate, and tax plans; an M&A advisor/valuation expert to position the company and negotiate terms; an attorney and CPA to structure deals, mitigate tax, and manage diligence; and banking and/or credit partners to secure capital and assess buyer financing. Regularly assess stakeholders---employees, customers, suppliers, lenders---to ensure incentives and relationships align with your exit goals.
Best Practices for 2025 and Beyond
- Start early and formalize: Document your plan, owners' objectives, and contingencies.
- Scenario plan: Model different economic and market conditions and define go/no-go triggers.
- Enhance value: Focus on EBITDA quality, recurring revenue, customer diversification, IP/process defensibility, and a durable leadership bench.
- Manage risk: Diversify both business lines and your personal net worth; reduce reliance on a single customer, supplier, or key employee.
- Stay flexible on timing: Build options to accelerate or pause based on market signals, multiples, or personal milestones.
Uncertainty doesn't argue against succession planning---it argues for a smarter, earlier, and more flexible plan. Owners who build sustainable value, keep multiple exit paths open, develop buyer relationships early, and assemble the right team are positioned to succeed in any market.
At WHZ Strategic Wealth Advisors, our Plan Well. Invest Well. Live Well.™ process helps business owners align growth, exit, and personal financial security. Contact us for a complimentary discovery session to see how we can help you to achieve "Absolute Confidence. Unwavering Partnership. For Life."
Thinking of selling in the next 3–5 years? Connect with Kevin Lewis at Rocklobs Advisory at rocklobs.com or 617-899-0773 for knowledgeable guidance to maximize value, protect your legacy, and transition with confidence.
Authored by Senior Managing Partner, Chief Strategist James Zahansky, AWMA® with commentary by Kevin T. Lewis of Rocklobs Advisory. Kevin Lewis and Commonwealth are engaged in a referral arrangement where Kevin Lewis refers potential clients to Commonwealth. Kevin Lewis receives a percentage of the commissions and fees, as applicable, received by Commonwealth resulting from these referrals. These payments create a financial incentive for Kevin Lewis to recommend Commonwealth over other firms where no compensation is received, resulting in material conflicts of interest. Kevin Lewis is not a client of Commonwealth. This referral may not be representative of the experience of others and is not a guarantee of future performance or success. To learn more about Commonwealth, search them wherever local business are reviewed.AI may have been utilized for research and initial drafting of this piece.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. www.whzwealth.com. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. WHZ Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.
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