Succession planning for real estate agents

Let’s be honest, most of us don’t like thinking about what happens when we’re no longer around.

The word “exit” itself makes many people wince—it sounds so… final.

And a bit negative, right?

But here’s the thing: planning for leadership transition isn’t admitting defeat or waving the white flag; it’s actually one of the smartest business moves you can make.

Many business owners and agents focus solely on running their businesses day-to-day. They’re too busy putting out fires and chasing growth targets to worry about something that seems years away.

But that’s a risky approach. Without proper planning, your business—and all the blood, sweat and tears you’ve poured into it—might not survive your departure.

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Let’s Talk About That Word: “Exit”

First, a confession: The word “exit” even makes me feel slightly uncomfortable—that is until I read Bo Burlingham’s book, “Finish Big.”

So, perhaps we need a different language: Rather than “exit,” let’s think about your “next chapter” or a “business transition.” Because that’s really what it is—you’re moving on to something new, and so is your business.

What matters isn’t the terminology but what you’re doing: creating options for yourself and preparing your business for a future that might not include you at the helm.

What Makes a Good Transition?

A successful business transition isn’t just about getting the biggest cheque. Of course, financial outcomes matter—you’ve earned fair compensation for what you’ve built. But there’s more to it.

For many business owners, a great transition means:

Knowing the business will continue to thrive
Feeling proud of the legacy you’re leaving
Taking care of the people who helped you build it—your employees, customers, and community
Finding personal satisfaction in your next phase of life

Essential Steps for a Positive Outcome

Based on Bo Burlingham’s insights, here are the key ingredients for a satisfying transition:

Know yourself first What do you want? What are your values? What will make you happy? These aren’t just philosophical questions—they’re practical ones that should guide every decision you make about your business’s future.

Build a transferable business Is your company dependent on you? If you stepped away, would it crumble? A transferable business—what Burlingham calls a “saleable company”—can operate without its founder.

This means having systems, processes, a strong management team, and a healthy culture that doesn’t rely on your presence.

Give yourself enough time Rushing a business transition rarely ends well. Depending on your goals, you might need years to prepare—especially if you’re grooming a successor or working to maximise value.

Get good advice This isn’t the time to go it alone. Find mentors, peers, and advisors who’ve been through transitions themselves. Their experience can help you avoid costly mistakes.

Consider your stakeholders Your transition affects many people beyond yourself—employees, customers, suppliers, and even your community. How will your decision impact them?

Planning with their interests in mind isn’t just ethical—it’s often good business.

Do your homework Research potential buyers thoroughly. Understand what different transition paths mean for you, your team, and your business.

Plan your personal transition What will you do after the business? Many owners struggle with identity and purpose after stepping away.

Start planning your personal next chapter as carefully as you plan the business transition.

The Menu of Options

You’ve also got more choices than you might think when it comes to transitioning your business:

Internal succession: Passing the torch to family members or your management team is a common choice. It can preserve your legacy and company culture, but requires identifying capable successors and helping them prepare.

Sale to an acquisition entrepreneur: These are individuals, often backed by investors, looking to buy and run a business. They might bring fresh energy and ideas while respecting what you’ve built.

Employee ownership (ESOP): Selling to your employees through an Employee Stock Ownership Plan can reward the team that helped build the business while creating tax benefits and preserving your legacy.

Private equity: These firms buy businesses to grow and eventually sell them. They can offer attractive valuations but might change your company significantly.

Strategic buyers: Competitors or companies in related industries might buy your business to expand, access new markets, or create synergies. They often pay premium prices but may absorb your company into their operations.

Mergers: Combining with another company can create a stronger entity while allowing you to reduce your role gradually.

What Holds Business Owners Back?

Despite the importance of planning, many business owners put it off. Why?

The daily grind consumes all attention. Running a business is demanding. When you’re focused on this month’s numbers and today’s crisis, it’s hard to think years ahead.

Emotional attachment. For many owners, the business isn’t just what they do—it’s who they are. The thought of letting go can trigger complex emotions.

Lack of awareness. Some owners don’t understand their options or the steps involved in planning a transition.

Family Business: Special Considerations

Passing the torch within the family comes with unique challenges. You’re not just transferring a business—you’re navigating family dynamics and preserving relationships.

Key considerations might also include:

Identifying family members who are both interested in the business and capable of running it
Developing their skills and preparing them for leadership
Managing potential nepotism concerns
Handling fair treatment of family members not involved in the business
Transferring not just ownership but also tacit knowledge and relationships

The challenge is striking the right balance between preserving family wealth and reputation while ensuring the business has competent leadership.

Beyond the Traditional Exit: Alternative Visions

Not every business owner wants to sell. Some aspire to build “Evergreen companies”—businesses designed to last for generations.

The Tugboat Institute and Small Giants movement advocates for companies that prioritise purpose and sustainability over maximising exit value.

This approach aligns with concepts like conscious capitalism and playing the “infinite game.”

It’s about creating organisations that continue to serve customers, employees, and communities long after the founder has moved on.

Harry Triguboff’s Meriton provides an interesting example. Triguboff has maintained detailed operational oversight while focusing on training the next generation.

His approach emphasises long-term vision and preservation of family values within a large business.

Buying a Business: The Other Side of the Equation

For those considering acquiring a business, key considerations include:

Genuine interest in the industry
Market analysis and growth potential
Understanding that sales skills differ from management skills
Thorough due diligence

Getting Ready for Sale

If you’re preparing for a potential sale, essential steps include:

Getting a professional valuation
Creating a comprehensive information pack
Conducting due diligence on potential buyers
Understanding your business’s strengths and weaknesses from a buyer’s perspective

Critical Questions for Succession Planning

As you begin thinking about succession, ask yourself:

What do I want my legacy to be?
Who are the potential successors inside my organisation?
What skills and knowledge will they need?
How will I transfer not just ownership but also relationships and tacit knowledge?
What’s my timeline?
What structure makes the most sense for my business and personal goals?

Bringing Everyone Along: Stakeholder Alignment

A successful transition requires bringing key stakeholders into the process. This means developing a shared vision for the company’s future and communicating effectively throughout the transition.

Transparency builds trust and helps manage expectations. It also allows stakeholders to plan for their own futures alongside the company’s evolution.

External Structures and Considerations

Outside boards of directors can provide valuable perspective and accountability during succession planning.

Estate planning tools like trusts can help manage wealth transfer, and understanding tax implications is essential for structuring an optimal transition.

Final Thoughts

Succession planning is about taking control of your business’s future and your own.

By starting early, exploring your options, and getting good advice, you can create a transition that serves your business, your stakeholders, and yourself.

Remember, the best transitions don’t happen by accident. They’re carefully planned and executed with clear goals in mind.

Whether you’re five or fifteen years from stepping back, now is the time to start preparing.

After all, you’ve put too much into building your business to leave its future to chance.

This story was created using both Perplexity and Google Notebook LM using Deep Research and Data from multiple sources including the below:

Excerpts from “CEO Succession Planning: Your 2025 Guide (+Free Template) – AIHR

Excerpts from the transcript of the video “Ep. #211 – What it Takes to Finish Big with Bo Burlingham”

Excerpts from “If you don’t plan your exit, you plan to fail.”

Excerpts from “Inside the Triguboff succession – Meriton | Built for a lifetime”:

Excerpts from “Strategies for Family-Owned Small Business Succession Planning.pdf”:

Excerpts from “Succession Planning for the Future“

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