By Mark Valentino, Head of Business Banking at Citizens.
Succession planning often lives on the “someday” list for small business owners, but as Citizens’ inaugural Business Pulse survey shows, “someday” is already here for many of your clients, and waiting carries real financial and operational risk.
The urgency is amplified by a demographic reality: $84 trillion in Baby Boomer wealth and 12 million U.S. businesses are set to change hands over the next decade, yet many owners have no succession plan in place. This generational shift represents one of the largest transfers of business ownership in history, and without proactive planning, it could trigger distressed valuations, abrupt closures and ripple effects across local economies.
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Half of business owners that Citizens surveyed are eyeing an ownership transfer, and among those planning for succession, most began the process within the past one to three years. Yet a sizable share still has no plan at all, creating vulnerabilities that can cascade across retirement security, jobs, customer relationships and business continuity.
Why the ownership transfer window has opened, and why it matters to your clients
Owners are heading into 2026 with renewed optimism. Sixty-four percent of smaller firms (revenue $500,000–$4.9 million) and 86% of mid‑sized firms ($5 million+) expect revenue growth in the next quarter. Many plan to invest more in talent, technology and marketing.
Growth is welcome, but without a clear path for leadership and ownership transition, it can magnify fragility. An unexpected health event, market disruption or even rapid scaling can expose gaps in governance, cash flow readiness and decision rights. For CPAs and advisors, the present environment is exactly when clients should convert momentum into long‑term resilience through succession planning.
The wealth implications: Align the transition with life goals
Succession isn’t just about naming the next leader; it’s about safeguarding personal wealth and preserving business value. Owners who delay planning often miss opportunities to optimize tax strategy, structure buy‑sell agreements and fund retirement in a tax‑efficient manner. Our survey highlights that common succession goals include preserving company value, ensuring business continuity and funding retirement — priorities that are inseparable from sound personal finance.
When CPAs integrate succession conversations into comprehensive financial planning — estate strategies, liquidity events and risk transfer — they help clients avoid costly missteps and make decisions that hold up under pressure.
The human side: Employees, customers and community
A transition plan is also a communications plan. Larger firms in our survey are especially focused on reassuring employees and maintaining continuity for customers. Uncertainty around future leadership can erode morale, stall decision‑making and weaken client confidence. Transparent dialogue with key employees about role clarity, career pathways and contingency coverage reduces operational risk. Likewise, signaling continuity to customers via documented processes, service SLAs and relationship handoffs protects revenue during and after the transition.
The ‘succession cliff’ is both a leadership and financial risk
The pending wave of retirements among Baby Boomer business owners creates a potential succession cliff, particularly for firms with no plan. Abrupt exits can trigger distressed valuations, hurried sales or even closures, which disrupts local jobs and supply chains.
Notably, hiring intentions are strong as very few of the firms we surveyed plan to reduce headcount, yet the top hiring challenge remains finding qualified candidates. If leadership transitions aren’t sequenced with workforce development and knowledge transfer, talent gaps widen at the worst possible moment. CPAs can help clients map an orderly transition that aligns future leadership capacity with operating needs, protecting both valuation and employment.
What your clients can do now, and how you can help
- Start with governance and goals:Document ownership objectives (i.e., keep in family, internal successor, ESOP, third‑party sale), decision rights and board/advisory structures. Tie goals to measurable outcomes like continuity metrics, valuation targets and retirement funding needs.
- Build a capital and liquidity plan for the transition: Many firms anticipate increased use of credit, especially larger businesses, according to our survey. Help clients assess the right mix — lines of credit, term loans and credit cards — to fund buyouts, equipment refreshes or working capital during handoff. Stress‑test cash flow under multiple scenarios to avoid liquidity squeezes.
- Sequence talent development with the timeline:With hiring challenges elevated, codify critical roles and cross‑training. Establish mentorship or apprenticeship tracks for potential successors. Link compensation to readiness milestones and define contingency coverage for key functions.
- Optimize tax and estate positioning early:Model transaction structures (asset vs. stock sale), timing and entity considerations. Coordinate with legal counsel on buy‑sell agreements, trusts and family governance to minimize disputes and tax exposure.
- Operationalize continuity: Document core processes and create a client‑facing continuity plan — who handles contracts, service escalations and key relationship management. Align insurance (i.e., key person, business interruption) to the plan’s risk profile.
- Communicate with stakeholders and revisit annually:Establish a cadence to update employees, customers, lenders and advisors. Treat succession planning as a living strategy that evolves with market conditions, business performance and family dynamics.
Using survey signals to prioritize action
Our survey points to near‑term spending increases in technology, marketing and supplies/inventory, all of which are areas that can boost efficiency and sales. CPAs can encourage clients to capture these gains while dedicating time to structural readiness: cash‑flow discipline, documentation and leadership development. Additionally, with many businesses planning to increase credit usage and consider credit limit changes, you can support clients in structuring prudent leverage that enhances transition outcomes.
Finally, note that most succession planners started within the past one to three years. That’s a reasonable runway — long enough to develop leaders, refine valuation and build liquidity — yet short enough to create urgency. For clients who haven’t begun, your role as a trusted advisor is a pivotal one. Frame succession as future‑proofing of both wealth and legacy, not a burdensome administrative task.
Succession planning converts today’s optimism into durable resilience. By integrating ownership transition with tax strategy, capital planning and workforce development, CPAs help clients protect retirements, preserve jobs and sustain the businesses that power local economies. Succession planning isn’t a someday task, it’s a today imperative for protecting wealth, people and the future of your clients’ businesses.
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Mark Valentino is Head of Business Banking at Citizens, where he leads strategy and growth for small and mid-sized business clients nationwide. With more than 17 years of experience in financial services, he is passionate about helping entrepreneurs build resilient businesses and plan for long-term success.
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