Owner-managed Cumbria businesses urged to start succession planning

The firm is urging business owners to take action to protect the future value of their companies, warning that even successful firms can be vulnerable due to practical barriers and a reluctance among owners to step back.

Graham Lamont, chief executive of Lamont Pridmore, said: "It might be easy for owner-managed businesses to focus on current success and turn a blind eye to future planning, but what happens if you wanted to change leadership or sell your firm?

"Owner-managed businesses might understand the importance of preparing for leadership transitions but could find it hard to commit to plans."

Founder dependency can leave businesses exposed, as the departure of a key individual could bring operations to a standstill.

Chris Lamont, partner and managing director at Lamont Pridmore, said: "Those who have built a business up from the ground have also developed important relationships and knowledge that can't easily be transferred.

"While careful planning can allow their leadership to be replaced, a lot of business owners might feel reluctant to leave their duties behind."

He said uncertainty about business valuation could further delay planning, as owners may not know what a sale or exit would look like financially.

He said: "While these factors do play some part in succession planning avoidance, the emotional aspect of handing on a business can hit owners especially hard.

"Building a business yourself is something to be proud of, which makes retirement from duties feel less like a reward and more like a like a loss of identity.

"Planning ahead safeguards your business, employees and family wealth.

"Family wealth can disappear without a plan, especially with the addition of a Business Property Relief cap and the increased exposure to Inheritance Tax."

Chris added that it's never too late to begin succession planning, but the best time to start is now.

He said: "Business owners should begin to identify critical roles in their firm, develop internal talent for leadership, and create a clear transition plan for long-term continuity.

"Keeping a succession plan that is regularly updated can build confidence among employees and stakeholders, even if a sale isn't likely anytime soon.

"As a family-run firm, Lamont Pridmore understands how common the succession gap is, but the sooner the plans are put in place, the more options that remain.

"You don't need to decide to sell or commit to an exit, but you should have the options still available to you."