Truist Business Lifecycle Advisory

Along with higher business valuations, increased prices due to economic uncertainty around tariffs and geopolitical concerns are affecting transition planning as well.

“We’ve had a number of clients who were planning expansion or acquisition but had to rethink things when they recognized the capital outlay required,” says Hughes. “Now they’re considering either partnering with a private equity group or selling all or part of the business.”

Changing plans may make you feel pressure to rush through a transaction, but Hughes warns that’s when mistakes can happen. Instead, he says, expect your advisors to keep the lines of communication open for you. Truist relationship managers stay in close contact with clients, so they can bring in the right teams to assist as situations evolve.

“When someone is making the decision to do something they hadn’t planned to do, that’s when we recognize the critical importance of understanding the transaction and what the client is trying to get from it, so we can help them overcome some of the risks,” says Hughes. “One of the most important things we try to do is ensure the transaction moves at the right pace—not so quickly that decisions are rushed but not too slowly when speed is a priority.”

The best time to strengthen your own and your company’s financial position for a business transition is well before anything is on the calendar. Early planning gives you more options, reduces surprises, and helps the business keep running smoothly while leadership focuses on the change. But the right priorities can look different depending on what kind of transition you’re facing.

Say you’re a business owner selling your company. How much of your focus is on personal finances? The most successful transitions occur when personal and family planning is closely aligned with business planning.

“Owners often don’t understand the tax consequences of the cash influx that comes with a sale,” says Hughes. “That’s where your relationship manager can help by connecting you to our Wealth advisors, who can help you prepare long before a transition happens.” Early preparation gives you room on the personal side to create tax-smart tactics, charitable strategies, and investment planning aligned with your goals.

When considering the company’s financial position, think about how a buyer or successor will view your cash flow. As an owner, if you’ve only been taking compensation in the form of dividends from profits, consider shifting to a formal salary through payroll ahead of any major transition. That will allow for greater transparency for a buyer and better forecasting of future cash flows.

Adopting agile financial planning principles can also help your company stay prepared for both planned and unplanned changes. Moves like shifting from highly structured annual budgets to shorter cycles that allow for faster responsiveness and sharper forecasting can support continuity by helping leaders better model risks, protect liquidity, and make data-driven decisions.

Hughes also points to operational safeguards that support continuity, like ensuring appropriate fraud controls and treasury capabilities are in place.

“We work with our treasury partners to ensure our clients can handle day-to-day transactions in any situation,” says Hughes. “Understanding where their business is going—not just where it is today—helps us deliver tailored solutions that keep the business running smoothly, even in times of change.”

Business transitions rarely fail because of a single adverse decision. More often, problems arise from minor disconnects, such as misaligned expectations, unclear timelines, or differing visions for the company’s future.

“Lack of alignment is one of the biggest risks we see during transitions,” says Hughes. “That can happen between generations, between owners and employees, or even between buyers and sellers.”

Generational transitions are a common example. In family-owned or closely held businesses, the next generation may not share the same vision, risk tolerance, or priorities as the current generation. Without early, honest communication, those differences can surface too late.

Misalignments can also show up in transactions. In mergers or acquisitions, for example, misunderstandings around closing timelines, employee experience, or cultural integration can derail progress if they aren’t addressed upfront.

Hughes explains, “Ensuring everyone understands what the business will look like after a transition and what success really means is critical.”

Clear communication also plays a direct role in financial planning. If projections about post-transaction performance don’t align with the underlying realities of the business, the risk profile changes, and so does the capital structure needed to support it.

That’s why Hughes sees the Truist Business Lifecycle Advisory approach as a kind of communication accelerator. By looking beyond financial statements and understanding how a company operates, its industry dynamics, and its long-term goals, relationship managers can help surface potential concerns before they become problems.

Risk mitigation is probably one of the most important things companies should focus on, and it’s often overlooked,” says Hughes. “Early communication helps us understand the risks businesses are facing so we can help plan for them.”

Ultimately, successful transitions come down to perspective. Understanding the priorities and concerns of all parties—owners, successors, employees, investors, and community stakeholders—allows leaders to anticipate challenges and solve for them early.

“When you have those conversations ahead of time, you’re not reacting to change. You’re prepared for it,” says Hughes. “Our goal is to anticipate client concerns before our clients can even articulate them.”