Expert Advice: Succession, Why your Children may not want to Follow in Your Footsteps
Our Expert Advice series throws the spotlight on family succession, a tricky and sometimes emotional subject
Our core advice to parents considering passing their business on to their children must first have open discussions with them about their aspirations and whether they are interested in continuing the family business. If they are it’s vital to involve them early, provide opportunities for them to learn the relevant skills, and ensure the company can adapt to current market conditions.
However, there are a number of reasons why your children might not be so keen to take over the business. Understanding these factors enables parents to make more informed decisions about the company’s future. Here are some common reasons:
Different Interests and Passions
Gone are the days when the family trade was automatically passed from father to son. Children often have their own interests and career aspirations that may not align with the family business. They might want to pursue careers in fields that they are passionate about, which could be completely unrelated to the business you have.
Pressure and Expectations
The expectation of taking over the family business can create immense pressure. Your children might feel overwhelmed by the responsibility and fear of not living up to your achievements. This can deter them from wanting to step into those shoes.
Desire for Independence
Many young adults seek independence and want to carve out their own path. Taking over the family business might feel like they are living in their parents’ shadow, which can be unappealing for those wanting to establish their own identity.
Work-Life Balance
Managing a business often demands long hours and personal sacrifices. The rewards are great, but so are the challenges and they may simply not want that for themselves or their own family.
Lack of Interest in Entrepreneurship
Not everyone is interested in or suited for entrepreneurship. Some children may prefer more stable or structured career paths.
Economic and Market Changes
The economic landscape and market conditions may have changed significantly since your business was founded. Your children might see limited growth potential or increased risk in the current market, making the business less attractive.
Skills and Expertise Mismatch
The skills and knowledge required to run the business might be very different from what your children have learned or are interested in. They might feel ill-prepared or disinterested in acquiring the necessary skills.
Family Dynamics and Relationships
Managing a family business can create complications in personal relationships. Potential conflicts with siblings or parents regarding the direction or operations of the business can be a significant deterrent.
Financial Considerations
If the business is struggling or needs significant investment to modernise or expand, your children may be reluctant to take on the financial burden.
Globalisation and Mobility
In today’s world, young people have more opportunities to work and live abroad. They might prefer to explore these opportunities rather than being tied down to a family business in one location.
A personal reflection:
A few years ago, a high-profile businessman from Dragons’ Den approached me to join a founding team for a new company in Mayfair, London. Three months after we started, my son, Josh, graduated from Brunel University. He had worked with me during the summer at my previous company and excelled, so I offered him a temporary position with the potential to be permanent. Josh joined and did well, but after six weeks, it was clear he wasn’t enjoying it. When we sat down and talked, he said, “Dad, this is just not for me.”
This reminded me of a previous meeting with a mother and son. The son had taken over the family business when his father fell ill, despite not wanting to. He ran it successfully for over 15 years, but admitted he never wanted to run it. His story made me vow never to put my children in that position.
So, I told Josh he should pursue what he loves. He now works happily in sports management. I’ve shared this story at seminars and often see knowing smiles between parents and children.
My advice to any parent is: don’t assume your children will want to follow in your footsteps. Although they may share your entrepreneurial spirit, they may not share your passion for your business. It’s important to let them pursue their true interests, even if it means working elsewhere.
This also means that your carefully planned exit strategy may not now involve passing the business on to your children. Don’t be disappointed if this is the case. Selling your business and using some of the proceeds to fund a more exciting opportunity for your son or daughter may be the best solution for you and your family.
Entrepreneurs Hub is a corporate finance company helping UK business owners sell their businesses smartly. Learn more from attending our free webinar on selling your business for maximum value or contact us to discuss how we can help you.
Similar Insights
Are you a business owner looking to sell your company?
FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…