Succession Planning: Creating a Sustainable Business Plan

Tuesday, August 25, 2026
By Matt Sutter, Chief Executive Officer | Domenic Ferrante, Chief Operating Officer
In Planning, Community

Do you plan to retire or pull back from leadership in the organization at 55, 60, 65?

Is it YOUR organization or are you the steward of the organization for a period of time. Will the organization outlast you or will it end when you are done?

If you own a company, how will you sell your ownership interest without bankrupting the company or putting a heavy debt burden on the next generation of leadership?

Is there real estate involved in the ownership transition?

These are all challenges to navigate in putting together a solid transition plan. SōL Harris/Day Architecture is currently in its third generation of leadership and as Matt Sutter, CEO and Domenic Ferrante, COO look towards a fourth generation of leadership taking control of the firm in the next few years, there has been a lot of planning to get to this point. SōL Harris/Day Architecture not only consists of a design business, but many people in the company also own the office building that is the home of the firm.

Do you plan to retire or pull back from leadership in the organization at 55, 60, 65?

Identifying a transition age is important, otherwise many founders work and suddenly realize that they are 65 or 70 years old and discover it is too late to pass on the leadership.

A sound succession plan takes ten to fifteen years to execute. If retirement is going to occur at the age of 55, future leaders must be identified and selected by the time the current leadership is 40 to 45 years old. The future leadership should reasonably expect that they will have 15 years to experience the benefits of leading the organization. Putting their own stamp on the organization as well as seeing financial rewards for their business investment takes time to realize. This means that the future leadership will be 30-35 years old when they are identified as those who will lead the organization.

Is it YOUR organization or are you the steward of the organization for a period of time. Will the organization outlast you or will it end when you are done?

Many business owners and founders do not look beyond their own time at their institution. However, there is an opportunity, through a well-planned transition, to create a legacy that can last several generations. The concept of being merely the steward of the organization for a time instead of the owner for all time, raises the bar and makes transition a part of the DNA and culture of the firm. Clients appreciate the firm continuing to provide services. Employees, who have put their efforts into the work for years, can continue with the organization and still provide for their families. Planning for the firm to continue benefits the clients, employees, future leaders and current leaders. All can win by creating a plan to transition the organization.

If you own a company, how will you sell your ownership interest without bankrupting the company or putting a heavy debt burden on the next generation of leadership?

Many company founders approach retirement and then decide they need to either sell the company or dissolve it. Dissolving the company is a tragedy for the employees who all have to look for a new job, sometimes in their later years, which can be very challenging. Selling a company internally in a short period of time can put undue financial burdens on the new leadership which in turn can jeopardize the financial situation of the company. A sale to an outside firm can also endanger the employees as many purchases are followed by a reduction in staff. Transitions to the next generation can be done well over a 10-15 year period of time. Slow purchases, sometimes partially funded by increased bonuses can make it easier for an internal transition.

Is there real estate involved in the ownership transition?

Selling a building where the business is located can be another burden on the new owners. Spreading out the ownership can help as can refinancing the property. Refinancing reduces the initial cash contribution required by the new owners. It also generally increases the return on investment on the property. A balance between the amount of debt and initial cash required is the key to developing a purchase strategy for real estate. Each purchase will be different. The new owner’s tolerance for risk needs to be taken into account when determining the appropriate balance between initial cash and loan balance.

SōL Harris/Day has identified the fourth and also the fifth generation of leaders that will lead the firm well into the future. A full transition of leadership within SōL Harris/Day takes fifteen years. Five years of initial buy-in, five years of reaping some of the rewards and a final five years of increased buy-in. This slow transition keeps the financial burden of the buy-in low, while giving time to grow leadership skills. Purchase percentages are planned 10 years in advance in order for the next generation of leadership to plan for the future.

Create a culture where the organization will long outlast your leadership.

If you would like to learn more about specifics of SōL Harris/Day’s transition plan, we would be happy to sit down and talk further.

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