The Art of Succession
- Salmon Studio
- Jul 10
- 7 min read
"It’s not just about continuity—it’s about the right continuity. A company doesn’t endure just because someone new steps in. The next leader must be more than a placeholder; they have to be deeply invested in the business—its craft, its people, its mission."
Original article extracted from
Article by Eric Markowitz
Managing Partner, Nightview CapitalColumnist, Big Think
Author OUTLAST (Scribner, 2027)
When discussing what makes great businesses endure, we often focus on strategy, innovation, and financial durability.
But I’ve come to believe the real test of longevity comes down to one single factor: succession.
It’s not just about continuity—it’s about the right continuity. A company doesn’t endure just because someone new steps in. The next leader must be more than a placeholder; they have to be deeply invested in the business—its craft, its people, its mission.
And just as importantly, the current leader must be invested in preparing them.
Any long-term investor, advisor, or business owner should always be focused on one thing: compounding. Sustaining and growing value over decades. But here’s the hard truth: without strong succession, compounding fails. A business without a clear plan for leadership transitions is a business on borrowed time.
After years of research, I’ve come to believe that many public and private companies ignore this. They chase quarterly earnings and short-term wins, pushing off succession planning until it becomes a crisis. The best companies, on the other hand, do the opposite—they embed leadership development into their culture, ensuring that institutional knowledge, vision, and strategy don’t disappear with a single person.
I didn’t fully appreciate this truth until I was forced to confront a different kind of continuity—my own.
A near-death experience in 2023—emergency brain surgery that I miraculously survived—put everything into perspective. It wasn’t just a brush with mortality; it was a wake-up call about resilience. It made me question everything: What endures? What crumbles? And why do some things last—while others fade away?
That search led me to study the world’s most ancient businesses—companies that have survived not just decades, but centuries. I became obsessed with understanding their secrets, convinced they had something vital to teach us about longevity in a world increasingly fixated on the short term.
From family-run enterprises in Japan to European workshops that have refined their craft across generations, one theme kept emerging: the companies that endure and compound for investors don’t just find their next leaders—they build them.
Succession isn’t an afterthought; it’s a long game. And the businesses that master it are the ones that stand the test of time.
From centuries-old winemakers to 400-year-old banks, my research into enduring businesses has revealed a three-part framework for thinking about succession—not just for operators, but for investors seeking true compounding machines.
1. The Best Succession Models Aren’t About Bloodlines—They’re About Passion
Traditionally, many of the world’s longest-lasting businesses have passed leadership strictly through family bloodlines.
But some of the most successful cases today show that passion and commitment—not genetics—are what truly matter.
When 12th-generation leader Antoinette Roze found herself with no immediate heir, she took an unconventional approach: she sold the company to an outside CEO—temporarily—while her young nephews completed their education and prepared for leadership.
The deal was structured with the option for her young nephews (who were still in school at the time) to repurchase the company once they were ready to lead. In the meantime, the business would be in the hands of someone who cared deeply about its craft and heritage. This approach ensured continuity while giving the next generation the space to determine if they truly wanted to take up the mantle.
Compare that to Peugeot, one of the oldest names in the automobile industry. For years, the Peugeot family tried to keep control within the family, despite mounting financial and strategic struggles. By the time they finally ceded majority ownership in 2014, the business had suffered greatly from a lack of fresh leadership. The lesson? A business’s survival should never hinge on who takes over, but how well–prepared and passionate that person is.
A more successful example comes from Friedr. Schwarze, a 12-generation German distillery.
The transition from father to daughter wasn’t automatic; it was earned. Katharina Schwarze had to prove herself, not just to her father, but to the company’s shareholders. She worked in the business for years, learned the craft, and eventually won unanimous approval from both the family and outside investors before stepping into leadership.
The transition was seamless because it wasn’t just about maintaining family control—it was about ensuring the business had the right leader for the future.
2. Succession Is a Two-Way Street: The Next Generation Must Earn It, But the Current Leader Must Also Teach
One of the biggest reasons succession fails, I’ve found, is because the transition is treated as a transaction rather than a process.
Great succession is not just about choosing the right successor; it’s about ensuring the outgoing leader is willing to put in the time to mentor, advocate for, and properly prepare them.
Consider Hoshi Ryokan, a Japanese inn that has been family-run for 46 generations since 718 AD—making it the oldest independent family business in the world. At Hoshi, succession has traditionally followed a strict patriarchal model: the eldest son inherits the business. But in modern times, that model has been tested. When the current head of Hoshi lost his son unexpectedly, the business faced a major inflection point. The family had to reconsider whether to adapt and allow a daughter to take over—something that would have been unthinkable in previous generations.
The key to their success has been their mentorship model.
At Hoshi, succession isn’t about waiting for the next generation to be “ready”—it’s about making them ready. Every leader takes on an apprentice-like role for the heir, immersing them in the business from a young age, ensuring they deeply understand not just the operations, but the philosophy of hospitality that makes Hoshi unique. Contrast this with many modern corporations, where succession is often a last-minute decision handed to an outsider with little understanding of company values.
Mars, Inc., the privately held confectionery and pet food giant, takes a different approach—prioritizing long-term leadership development.
When Grant Reid stepped down as CEO in 2022, Mars had already prepared Poul Weihrauch, a longtime executive, to take over. Having led the company’s global pet care division, Weihrauch deeply understood Mars’ culture, long-term vision, and commitment to sustainability.
The lesson? A great successor must have passion, but an equally great leader must be willing to teach.
The most enduring businesses understand that the baton must not just be passed—it must be prepared to be received.
3. The Best Successions Have a Broader Purpose: A Deep Care for Customers and Craft
Enduring businesses don’t just survive because they pass the baton well; they survive because each new leader deeply understands and cares for the customers and the craft that built the company in the first place.
Look at C. Hoare & Co., the oldest private bank in the UK, founded in 1672. What has kept it alive for over 350 years isn’t just financial acumen—it’s trust.
The family members who take over the business don’t simply inherit a company; they inherit relationships that have lasted for centuries. The bank has never advertised. It has never aggressively pursued growth. It has simply nurtured trust—handed down from one generation of bankers to the next.
At Hugel & Fils, a 12-generation Alsatian winery, succession is about more than ownership; it’s about stewardship. The family sets aside reserves every year to ensure that future generations will not have to sell off land or compromise on quality due to inheritance taxes. Why? Because they don’t just see themselves as business owners—they see themselves as caretakers of something far bigger.
This is what separates businesses that last from those that don’t.
True succession planning isn’t about keeping a business alive—it’s about keeping its mission alive. It’s about ensuring that every leader, whether family or not, sees their role as part of a larger story—one that extends beyond their tenure and into the future.
Succession as the Ultimate Longevity Strategy
Across my research, I’ve found one constant: the best companies don’t just think about what they build—they think about who will carry it forward.
Modern succession isn’t about forcing a son or daughter into leadership. It’s about finding the person—family or not—who has the passion to lead, the discipline to learn, and the care for the business’s customers and craft.
And just as importantly, it’s about ensuring that the current leader is willing to put in the time, effort, and advocacy to properly prepare them.
The question every business should be asking isn’t just who’s next?—but are they ready? And just as crucially: Are we willing to make them ready?
Because the real secret to business longevity isn’t just about passing the baton. It’s about ensuring the next runner is not only capable—but fully prepared to go the distance.
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