Chief executive of the Development Bank of Wales, Giles Thorley, has emphasised the critical importance of succession planning for business owners, warning that neglecting it could jeopardise jobs, local ownership, and economic stability. In an opinion piece, Thorley stated that the best legacy any business owner can leave is ensuring their company thrives long after they step aside.
Stark Statistics on Succession Planning
A new report by Economic Intelligence Wales (EIW), titled Small Business Ownership Succession Planning Strategies, reveals that only 16% of SMEs in Wales have considered succession planning. Furthermore, almost half of family-owned businesses lack a formal succession plan. The report, authored by Mark Lang, Max Munday, Annette Roberts, and Neil Roche from Cardiff Business School, combines academic research with economic insight.
Thorley noted that these figures represent real businesses employing local people and supporting local supply chains. When succession is left until urgent, businesses can lose value, investment is delayed, skilled employees become uncertain, and local supply chains suffer. In some cases, businesses close or leave Wales, taking jobs and economic value with them.
Opportunity in Ownership Transition
Thorley argues that succession planning should be viewed as an opportunity rather than a burden. Properly handled, ownership transitions can bring fresh leadership, unlock new investment, and create platforms for growth. Over the past decade, the Development Bank of Wales has supported 379 succession transactions with more than £157 million in funding.
Examples include Design & Supply in Merthyr Tydfil, which completed a second management buy-out (MBO), safeguarding 65 jobs. Cardiff-based 1st Choice Accident Repair Centre entered a new chapter through a second MBO after initial funding in 2018. Lloyd & Gravell adopted employee ownership, giving staff a direct stake, while DRAC Consulting implemented a family succession plan with investment support.
Call for Clearer Support Systems
Thorley stressed that many owners do not know where to start. The report recommends creating a clearer, more visible support offering for business succession in Wales, helping owners navigate legal, tax, financial, and personal considerations. Whether through family succession, MBO, employee ownership, or trade sale, businesses should access guidance and finance earlier.
“This is about more than individual businesses. It is about the future shape of the Welsh economy,” Thorley said. He added that helping Welsh firms transition smoothly protects jobs, retains wealth locally, and gives communities confidence. While not every business will stay independent, where viable Welsh businesses can remain in Welsh ownership, the economic and social benefits are substantial.
Long-Term Economic Resilience
Thorley concluded that business succession deserves to be treated as one of the most important economic conversations in Wales. “The best legacy any business owner can leave is not simply the company they built, but ensuring it has every opportunity to thrive long after they have stepped aside,” he said.
