Rochester panel highlights early planning for successful business transitions

Business owners considering an eventual exit should begin planning years before they expect to sell, according to experts who said a successful succession strategy extends well beyond closing a transaction. 

That was the central message during the Rochester Business Journal and Daily Record virtual panel discussion on business succession planning held July 30. 

The discussion was sponsored by Doeren Mayhew; Harter, Secrest & Emery LLP; Paramax Corp., and Stone Creek Advisors.  

The panelists were: John Rizzo, New York managing principal at Doeren Mayhew; Dan Collins, partner at Harter, Secrest & Emery; Andrea Feine, senior director at Paramax, and Nicole Newman, vice president and investment advisor at Stone Creek Advisors. 

Throughout the discussion, panelists agreed that successful succession planning requires more than finding a buyer. It demands years of preparation, disciplined decision-making and a clear understanding of both the owner’s objectives and the business’s long-term value. 

“You don’t wake up in the morning and decide to sell your business,” Rizzo said. “Succession is a strategy, not a single transaction.” 

Rizzo encouraged business owners to begin planning three to five years before a transition, comparing the process to staging a home before putting it on the market. 

“It’s about preparing what buyers will see before they ever walk through the door,” he said. 

That preparation starts with aligning the owner’s personal goals, the realities of the business and the most appropriate path to market. Rizzo outlined a three-step framework focused on evaluating exit options and timing, maximizing financial value and preparing for life after ownership. 

“A transaction is not the finish line,” he said. “It is the bridge from business legacy to owner security.” 

Newman said many owners focus too early on what their business is worth, when the more important question is what the proceeds are intended to accomplish. 

She noted that every business owner is already an investor with a highly concentrated position in a single asset. 

“Every dollar in that business was a capital allocation decision,” Newman said. “So is every dollar, and every hour, after it.” 

She also cautioned that only 20 to 30 percent of businesses brought to market ultimately sell. 

When transactions fall apart, she said, it is often because owners themselves abandon negotiations after realizing they cannot justify the valuation they had expected. 

To achieve a successful transition, Newman said, both the business and the owner must be prepared. 

“Be intentional with everything you spent a lifetime creating,” she said. 

Collins echoed the importance of intentional planning, saying business owners must first define what success looks like before determining the right succession strategy. 

“If you can’t articulate those goals, you may not be ready to sell,” Collins said. 

He said the right succession plan depends on the owner’s long-term objectives, whether that involves keeping the business in the family, transitioning ownership to employees or pursuing a sale to a strategic buyer.

He also encouraged owners not to overlook internal leadership when planning a transition, noting that employees closest to the business often have the clearest understanding of operational strengths and potential challenges. 

Feine spoke of preparing one’s business for a successful transition.  

She said the first steps for business owners considering a sale include starting early, aligning the team and knowing the company’s value. 

She also urged owners to approach unsolicited acquisition offers strategically, warning that an initial bid may not reflect the business’s full value or fit the owner’s long-term goals. 

Feine said every succession plan is unique and emphasized the importance of assembling a team of advisors with specialized expertise to help guide the process.

“Don’t do it alone,” she said. 

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