3 Tips for Washington’s Small & Family Businesses Facing Transitions
September 11, 2025
Daily Journal of Commerce
Seattle DJC.com
By Brian McGuigan
Small and family-owned businesses are the backbone of Washington's economy, comprising 99.5% of all businesses and employing nearly 1.4 million individuals, accounting for a total of 49% of the state's workforce. As of 2023, Washington boasts approximately 644,868small businesses.
But this year marks a major turning point: thousands of Baby Boomerbusiness owners are expected to face difficult decisions about whatcomes next, including whether they can or will retire.
Whether it's passing on the reins of the business through succession, gradual step-back, or even selling, now is the right time for business owners to think intentionally about transition – before the need becomes urgent.
However, many business owners haven't created a formal transition plan, leaving their legacy, employees, and enterprise value at risk. The most successful transitions are planned early, communicated clearly, and aligned with the owner's long-term goals and values. Ownership transitions don't just mean selling the business; they can include growth capital, management succession, partial sales, or generational handoffs.
As an eighth-generation family business, our team has navigated countless transitions and pivots and supported other businesses of all sizes across industries to do the same. This legacy also gives us a deep understanding of family business and the importance of long-term values.
When beginning transition planning, owners should reflect on a series of questions to get them to their goals:
•Do you want to sell and retire, or stay involved? If so, how much?
•Do you prefer to keep majority control or partner with a trusted minority investor?
•Is preserving your company's independence and culture important?
•How do you want to treat your employees and customers in a transition?
•Do you want another opportunity for upside (a “second bite at the apple”)?
There is no one-size-fits-all, and business owners must consider tailored investment or succession strategies based on their nuanced goals. From partial sales (recapitalize and stay involved), long-term partnership with family offices, minority investments that bring capital without control, structured liquidity that enables retirement, succession, or expansion, full sales that preserve the company's legacy and independence, there are lots of creative options to consider.
As you navigate the future of your business, keep in mind these key points:
•Don't Wait Until You're Ready to Exit to Plan for It
Even if you're years away from selling or transitioning your business, start thinking about your long-term goals now. A clear plan gives you more options, more value, and more control when the time comes. Think of it as building a roadmap, not just an emergency exit.
•Growth Doesn't Have to Mean Giving Up Control
You don't have to sell your business to fund growth. Minority investment options allow you to bring in capital without giving up control. Whether it's to expand, de-risk personally, or bring in strategic guidance, these structures can help you unlock value and stay in the driver's seat.
•Legacy is Built by Design, Not by Default
What happens to your employees, customers, and culture after a transition depends on how intentional you are today. Choose partners who share your values, not just your valuation. The best deals don't just preserve your legacy — they enhance it.
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