Retail Observer

RETAILOBSERVER.COM NOVEMBER 2026 28 F or independent retailers, succession planning often begins with a personal question: When will I be ready to step away? But a business's future has many facets, and not all are personal or waiting on your timeline. A strong succession plan connects all of the owner's goals with the business's ability to evolve, develop leaders, and serve customers for the long term. That starts with understanding what must change and what's worth preserving. Picture the future state of your business — Before considering potential buyers or partners, assess your leadership team, financial resources, and operating capabilities. Who could lead if you stepped away? Can the business fund showroom improvements or expansion while maintaining dependable delivery, installation, and service? Where would additional expertise help? These questions can help you stress-test your business and its readiness for the future, which are important details to track even when retirement is years away. Developing managers and strengthening systems today can support growth under the current ownership while preparing the business for a future transition. Consider the paths together — Continuing under the current ownership might make sense when leadership, capital, and market opportunity align. Bringing in a partner can add resources or expertise. Transferring ownership to family, employees, or an outside buyer opens another path. These choices can also overlap. An acquisition can be a platform for continued growth, and selling doesn't have to mean an immediate exit. Partnership also isn't a sign of weakness. A successful retailer may seek support to pursue opportunities faster, develop a team, or reduce dependence on one owner. To evaluate any path, look beyond the financials and define what matters most to you, whether it's legacy, employee satisfaction, community, or your own role afterward. Then ask a simple question: What do I want this company's next chapter to look like? The path forward should support both your answer and the company's needs. Evaluate what happens after the sale — Price matters. Owners need to protect their financial security and recognize the value they've built. But the highest offer isn't always the most valuable outcome, especially over the long term. Ask prospective buyers how they will approach employee development, management continuity, the local brand, and existing locations. Which decisions should remain with local leaders? What requires approval? How will investment in showrooms, systems, and people be evaluated? Do your due diligence and verify the answers. Speak with leaders of previously acquired businesses about what changed, what support materialized, and how disagreements were resolved. Preserving a business's identity doesn't mean that every practice should stay the same. Clear responsibilities, financial discipline, and shared expectations are essential. Consider customers and trade partners as well. Who will communicate the transition, and how will service commitments be maintained? For a retailer built on repeat business and referrals, continuity depends on the experience customers receive, not simply the name on the door. For appliance retailers, industry knowledge matters, too. A partner who understands showroom sales, builder relationships, delivery, and installation can offer support that extends well beyond capital. Once you've gathered these pieces of information, use what you learn to create a succession plan that's ready when you are. Learn from the next chapter — Tim Hillebrand's experience at Don's Appliances illustrates the connection between succession and growth. When the family considered selling, a key concern was who would eventually assume leadership. Financial security, employee stability, and preserving the family business's legacy also shaped the decision. Don's Appliances is now part of Kodiak Interiors Group, whose approach combines local identity and leadership with shared infrastructure and collaboration across appliance and interiors businesses. "The offer we went with from Kodiak was not the highest we received, but we thought it was the best fit based on what we were looking to achieve with our family business," said Hillebrand. "It was good for our employees. It was good for us. And we were able to keep the legacy – our roots – Intact, while joining a larger organization." Hillebrand points to the benefits of financial benchmarking with peers, exchanging delivery and installation practices, and greater capacity to pursue capital investment. Those practical capabilities connect an ownership transition to the business's next stage of growth. Prepare the people, too — Succession also changes expectations for family members and employees. Discuss future roles, leadership responsibilities, and decision-making early. Give managers a clear view of how they can develop and contribute in the next chapter. The most useful question is not simply who'll buy the business. It is who, or what combination of people and resources will be required for the business to thrive for the next 20 years and beyond, while protecting the relationships and reputation that made it successful in the first place. RETHINKING SUCCESSION: PLANNING FOR YOUR BUSINESS'S NEXT 20 YEARS Jeff Smith Guest View Jeff Smith is the CEO of Kodiak Interiors Group, a national platform that acquires and supports locally led appliance and interiors companies across the U.S. Visit www.kodiakig.com for more information. RO

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