How To Gracefully and Strategically Transfer Your Branding Business To the Next Generation

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By Julia Beardwood, Founder & Chief Growth Officer at Beardwood&Co

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You’ve spent a good chunk of your life building a successful branding business. The final item on your to-do list after building a company from scratch? 

Looking for the exit sign.

When you start a strategic or creative business, most of us don't ponder our exit plan. You're thinking about possibilities and growth, not retirement. Some founders thrive on the relentless pace of their business. Even now, as I’ve eased into my 60s, I have friends and colleagues well into their 70s still involved in the day-to-day operations of their companies. 

That's not me. 

The truth is, as CEO, it's an "always on" kind of situation, and you're never truly off the clock. And when you're running a branding agency, there's the constant worry—about people, projects, pitching, clients, and, of course, the ever-present need to bring in more revenue to keep the lights on and the team thriving. That kind of stress and unrelenting pressure wasn't how I envisioned spending the rest of my life.

20 years after founding my brand consultancy, Beardwood&Co., I chose to transfer leadership and ownership to the next generation, Sarah Williams and Ryan Lynch, now our Co-CEOs,  and set the business up for success with its next chapter.

That led many of my founder peers to ask me, "How did you do that?"

Well, here's how.

Tip #1: The endgame happens sooner than you think

Truthfully, most businesses like mine don't survive a founder's departure. They simply sell out, peter out, or implode. I didn't want any of those.

When I started Beardwood&Co. after 17 years in global agencies, I wanted to break free from the holding company model that prioritized profit over people, where senior leadership drifted farther and farther from the clients we were supposed to serve. I craved a different kind of workplace—one where people were genuinely happy, productive, and deeply connected to their clients—a place where good work flourished because of deep expertise and healthy relationships.  Selling out my dream to a holding company was not an option.

Tip #2: Always recognize and reward outstanding talent

When Sarah Williams joined as Senior Designer in 2006, my first employee, it was game-changing. The business doubled, then doubled again. 

We had arrived, and I knew I had to find a way to recognize and reward that kind of impact. That's when my “financial fairy godfather" (a CFO at a larger agency) outlined a Partner Profit-Sharing Plan (PPSP). It wasn't just about the money but about instilling a sense of ownership and a shared commitment to our success. Ryan Lynch came on board a few years later as Managing Partner and became integral to this shared vision. But, at that moment, a seed was planted, and I began to consider the agency's legacy.

Tip #3: Create a PPSP with five critical components

A PPSP essentially allows you to structure a plan where partners receive a share of the company’s profits. In our case, that’s on top of base salary, a generous 401k match, and an annual performance-based bonus. The idea is to motivate all parties and boost morale, aligning everyone’s interests with the agency’s overall success.

The one we set up had five central pillars.

• A partner title: Gives internal and external recognition of the leader’s critical importance to the business.

• Decision-making responsibility: Partners must share in the direction of the business, including who we hire, with whom we work, and how we grow.

• Real profit sharing: Your top people deserve a big chunk of money if the business is profitable and growing.  Ours ranged from 10% to 20% per Partner.

• A growth imperative: Profits are only shared if annual revenues grow over the average of the past two years. No growth means no profits are shared.  It motivates the Partners and protects the owner in a down year.

• Skin in the game: Profit-sharing payouts are set at 24 months after they are earned to instill an ownership mindset.  If a Partner leaves before the profits are paid out, they forfeit that amount, acting as golden handcuffs for retention.

The PPSP was crucial in retaining our next leadership generation, Sarah and Ryan. And it provided the foundation for wealth-building they needed to acquire the business without mortgaging their homes.

Tip #4: You’re never just building a business

The foundation of our successful transfer was the deep sense of trust and camaraderie we'd cultivated over the years. It was a three-way marriage built on loyalty and good intentions. That was essential in navigating the emotional and financial complexities of the transfer. Additionally, incentivizing Sarah and Ryan early on was critical, as it gave them a sense of purpose and ownership.

Tip #5: Find trusted advisors

We discussed a business transfer a few times before we finally figured it out.  What made the difference was having an outstanding tax accountant lead the way on the financial framework, working together with our internal head of finance.  These two highly trusted advisors knew each of us deeply and understood our goals and stress points.  They were the marriage counselors who helped talk through everything in clear language and alleviate concerns, so we could proceed with confidence.

Tip #6: No secrets

We were transparent with our team and clients about the entire process and its implications. Sarah and Ryan had been seen as equals for years, so the transition felt seamless. It can be especially tricky for long-term clients. Still, we wanted them to feel at ease with the move, and they overwhelmingly said that they appreciated the stability and continuity, along with the fresh leadership.

Tip #7: Seriously, start planning early

This is where I went wrong. I was five years too late. Don't wait until you’re thinking about retiring to consider your exit strategy. If you don't want to go directly from the "Zoom-to-coffin" pipeline, explore your options in your early 50s (or even before). Build a strong leadership team and find financial advisors to help you navigate the process.

Looking back, I'm incredibly proud of what we've accomplished. It's a win-win-win situation. I've secured my exit, Sarah and Ryan have the opportunity to build their equity, and our clients and team have the stability and depth of talent they deserve. I transitioned into the role of Chief Growth Officer to ensure a smooth handoff. I actually find it easier to be chief cheerleader and promoter of the Agency now that I’m not the owner.  Moreover, the agency is thriving, with a 40% uptick in growth and new clients in the year after I sold.  

When you start a business, you're trying to build something that lasts. But leaders don't often consider the "lasting" portion of the equation. It takes time and cultivating talent. Ultimately, you need to preserve your team and the culture you have painstakingly built over time so that you can find a sustainable path forward. Letting go shouldn't be painful; it’s the building of a new legacy.