If there is one thing certain about every business, it is that the story will one day change hands – whether on the owner’s plans and timeline or due to circumstances beyond their control. The question for many owners is: who will own your story?

Family-run and owner-managed businesses play a central role in the UK economy. They are engines of innovation, entrepreneurialism, and growth, employing 14 million people and generating over £1.7 trillion in turnover in 2021/22, according to Family Business UK.

Research commissioned by the Family Business Research Foundation found that for every £100 of turnover generated by family businesses, £17.50 was paid in taxes. Family businesses contributed a total of £422 billion in taxation in 2023. Of this, £142 billion was generated through taxes borne, and £280 billion through taxes collected.

But an ageing business-owner demographic is reshaping the operating environment faster than many realise. A significant number of owners are now 55 or older, with some form of exit planned, a shift often described as the “Silver Tsunami.”

Research by Ownership at Work, supported by the Federation of Small Businesses, shows that over two-thirds of older SME owners — representing 120,000 firms — intend to exit within a decade. Of that group, 43% (51,600 firms) predict their business will need to find completely new owners or face closure. Around 30,000 firms employing an estimated 910,000 people anticipate voluntary liquidation despite being viable.

According to independent research by STEP (The Society of Trust and Estate Practitioners), over two thirds (69%) of family business owners do not have a succession plan. The family business survey finds the top three reasons for not having a succession plan are: ‘they know they should do it, but haven’t got around to it’ (27%), ‘think they don’t need to do this yet as there is plenty of time to plan’ (15%), ‘don’t have a clear successor’ (14%).

The longer owners wait to design and implement a succession plan, the fewer options owners have, and the greater the risk that the plan will not meet their goals. The risks also increase that the business will fail along with the health of the owner.

This means thousands of business owners are approaching retirement with the risk of losing their legacy entirely. The cost of inaction will be felt locally through lost jobs, weakened economic assets, and shrinking tax bases.

The familiar North–South divide is also evident in business density. In the North-East, there are just 751 businesses per 10,000 residents — 45% fewer than London, the lowest business density of any UK region. This makes early succession planning even more urgent in areas where economic assets are thinly spread.

Armstrong Watson found that 24% of business owners in the North-East — compared to 16% nationally — have not considered their exit plan, despite nearly a third planning to leave within five years. One in five expect their business to close. Among those planning to pass the business to the next generation, many have yet to discuss succession at all — a clear risk to continuity.

In Yorkshire, 15% of businesses will cease trading when their current owners retire, with 13% planning a management buyout. In predominantly rural Cumbria, 23% intend to pass on the business to children, yet a quarter have not discussed succession with them, and 15% have no exit plan at all.

In Scotland, 49% plan to leave within five years, but one in five have not considered an exit strategy. Among those who have, 18% expect closure, 17% expect a sale to the highest bidder, and just 16% plan to pass the business on — well below the national average.

The gap between intention and action remains wide — and this threatens not only firms but also the people and communities that depend on them.

Succession planning in the UK has moved to a front-burner concern. We must turn succession into an intentional conversation well before it becomes a crisis.

A prepared business owner is aware of all their exit options and ready to exit when the time is right, personally, for their business, and for their finances. Education can help owners become aware of their exit options — from family transfers to strategic sales to management buyouts.

Most business owners want to establish a personal legacy through continuation of the business, while continuing to provide income for family members and maintain jobs for family members and colleagues.

Employee Ownership (EO) is emerging as a practical, future-proof succession strategy that protects legacy and employees, while allowing owners to exit at their own pace and on their own timeline.

It keeps businesses, jobs, and wealth anchored in the communities where they were built, circulating profits and capital locally. It also offers a powerful tool for rewarding the people who helped owners create success by enabling employees to share in the value they help create.

Nearly 3,000 UK businesses are now employee-owned, with Yorkshire and Humber home to 10% of the total. Yet, as Mason (2019) found, the region remains under-represented relative to its economic base. This suggests substantial opportunity for growth.

A major barrier is awareness. Many owners — and the advisers they rely on — do not know employee ownership exists as a succession option. Bringing it into an owner’s line of sight early is essential.

Prepared owners consistently secure better outcomes. Day-to-day pressures understandably take priority, but delaying succession planning is costly. The evidence is stark:

Successful exits are not the result of luck. They happen because owners plan early, prepare well, and move with intention.

This is where regional ecosystems matter. Combined and local authorities, business networks, and professional advisers all have a role in ensuring business owners see the full suite of options early enough for them to be viable — including employee ownership trusts.

This is why we are launching Succession Ready this May 20, 2026 — a four-part regional series designed to support business owners across Yorkshire and Humber in planning successful transitions.

Succession Ready is a distributed, sustained education campaign bringing together owners, advisers, and place-based partners to illuminate all succession pathways: family transfers, strategic sales, management buyouts, and employee ownership trusts.

The programme places particular emphasis on employee ownership — still one of the least understood options yet among the most powerful.

Each summit will convene 40–60 carefully selected business owners, advisers, and regional partners for focused, practical exploration of succession routes. The series launches in Huddersfield, West Yorkshire, followed by events across:

Organised by EO Sector — the UK’s only business media company dedicated exclusively to employee ownership and succession planning — the series provides impartial, education-led guidance, supported by deep connections across Yorkshire’s business and civic landscape.

Each event features expert insights, real-world case studies, and direct access to trusted advisers who understand both traditional and alternative succession routes. The programme is complimentary for qualifying business owners planning a transition within 1–10 years, with limited adviser spots available.

If we want more good businesses to remain locally rooted, resilient, and thriving, we must ensure succession becomes an intentional, early conversation — not a last-minute crisis.

Explore every succession route — from family transfers to strategic sales to management buyouts — and understand why employee ownership continues to gain momentum as a compelling, future-proof option.

Register your interest: www.successionready.co.uk

Limited Advisor Spots Available. Interested in Participating? Contact us directly to discuss participation. Email: [email protected] | Call: 07497 611 146