Succeeding at Business Succession  

Business owners in the metal building industry are used to solving problems, managing risk, and planning for the next project. But one area that often gets pushed aside is succession planning. 

Family businesses account for 54% of private sector GDP, yet 36% of family businesses still do 
not have a strong succession strategy in place.¹ That may sound surprising, but when you’re busy running day-to-day operations, managing employees, bidding jobs, and keeping projects moving, long-term planning can easily take a back seat. 

The reality is this: failing to plan for succession can create significant financial and operational challenges for both the business and the family left behind. 

One major consideration is taxes. Upon the death of a business owner, estate taxes may become due, and without proper planning, heirs can be left scrambling to make decisions under pressure. A lack of preparation can also result in unintended outcomes regarding who ultimately controls or owns the business.² 

Another important issue is business continuity. If an owner dies unexpectedly or becomes disabled without a succession structure in place, the value of the business itself may decline. 
Uncertainty around leadership, ownership, and operations can create disruption for employees, customers, vendors, and family members alike. 

A strong succession strategy typically starts with three key steps: 

1. Identify your goals: Before creating a plan, it’s important to define what success looks like for you and your family.

• Do you want ongoing income from the business during retirement?
• Should family members continue operating the company? 
• Do you want key employees to have ownership opportunities? 
• What values, culture, and legacy do you want carried forward?

2. Determine the right tools and strategies: There is no one-size-fits-all approach. Depending on your goals, strategies may include:

• Buy/sell agreements 
• Gifting ownership shares 
• Trust planning 
• Employee stock ownership plans (ESOPs) 
• Insurance solutions designed to support business continuity

3. Put the plan into action and revisit it regularly. A succession plan should evolve alongside the business. Changes in profitability, ownership structure, family dynamics, health, or key personnel can all impact the effectiveness of the strategy over time.

One of the most overlooked…but most important…parts of succession planning is understanding the actual value of your business. Without a proper valuation, it becomes difficult to make informed decisions around ownership transfers, taxes, or retirement planning. 

Business succession planning can be complex and often involves legal, tax, and financial considerations. Working alongside qualified legal and tax professionals can help ensure the strategy aligns with your goals and protects what you’ve worked so hard to build. 

Too many business owners wait until a health issue, retirement deadline, or unexpected event forces the conversation. The strongest succession plans are created before they are needed.

If you own a business and have not reviewed your succession strategy recently…or if you have never created one…now is the time to start the conversation. Your employees, your family, and the future of your business depend on it. 

Learn more about MBCEA membership and read additional business management articles.

1. FamilyBusiness.org, 2025

2. Typically, estate taxes are due nine months after the date of death. And estate taxes are paid in cash. In addition to estate taxes, there may be a variety of other costs, including probate, final expenses, and administration fees. 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite. 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation

Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.