The planned process of transferring ownership and management of a company to the next generation, to existing executives, or to an external buyer.
For thousands of business owners across Spain, the question is not whether succession will happen, but when and how. Business succession is the single most important strategic decision a founder will ever make — and the one most frequently postponed until it becomes urgent.
Business succession is the structured process by which the ownership, management, and strategic direction of a company are transferred from one generation — or one owner — to the next. It encompasses everything from choosing a successor to restructuring share ownership, from professionalising governance to managing the emotional dimensions of letting go.
Succession can take several forms:
The numbers tell a stark story. Roughly 85% of Spanish companies are family-owned. According to various industry studies, only about 30% survive into the second generation, and barely 10-15% make it to the third. The primary cause of failure is not market conditions or competition — it is the absence of a well-planned succession process.
When succession is not addressed proactively, the consequences can be severe:
At Blue Mountain, succession-driven transactions represent a significant portion of our investment activity. We have partnered with dozens of founders navigating this transition, and our approach is built on several principles:
Respect for timelines. We understand that succession is personal. Some founders are ready to exit in twelve months; others need five years to transition gradually. Our patient capital allows us to adapt to the founder’s rhythm, not the other way around.
Preserving what matters. Founders who have built a company over three decades care about their employees, their brand, their community presence. We commit to maintaining these elements because we believe they are part of what makes the company valuable.
Flexible structures. Not every succession requires a 100% sale. We can acquire a majority stake while the founder retains a meaningful minority. We can fund an MBO while providing governance support. We can structure phased buyouts that align with the founder’s retirement plan.
Governance as a bridge. The transition between the founder’s era and the next phase of the company’s life needs a governance framework: a proper board, clear decision-making processes, professional management layers. We help build this infrastructure because it is what ensures the company thrives beyond the transition itself.
A 68-year-old founder of a maritime services company with 30 million in revenue and 4 million EBITDA approaches Blue Mountain. His two daughters are professionals in other fields — one is a doctor, the other a lawyer — and neither wants to run the business. The operations director has been with the company for 15 years and is capable but lacks the capital to buy it.
Blue Mountain structures the transaction as follows: we acquire 75% of the shares from the founder, the operations director acquires 10% through an MBO financed with Blue Mountain’s support, and the founder retains 15% as a non-executive chairman for three years. The founder receives the majority of the price at closing but stays involved during the transition. The operations director becomes CEO with meaningful skin in the game. The company continues under local management with a long-term investor behind it.
Three years later, the founder retires completely. Blue Mountain acquires his remaining 15%. The company has grown, the management team has matured, and the business is stronger than when the process started.
The honest answer is: earlier than you think. Ideally, succession planning begins five to ten years before the anticipated transition. This provides time to professionalise the company, develop internal talent, optimise the tax structure, and evaluate all options without the pressure of urgency. In practice, most founders start thinking about succession when they are 60-65, and many wait until a health scare or personal crisis forces the issue.
This is far more common than most founders expect. And it is not a failure — it is simply a different path. The options remain excellent: an MBO, a sale to a like-minded investor (such as a family office), or a combination of both. The key is to accept the situation early and plan accordingly, rather than spending years hoping the children will change their minds.
Not necessarily. The outcome depends entirely on who buys it. An industrial buyer may indeed integrate the company into their own operations. But a family office or patient capital investor typically acquires the business to run it as a standalone entity, often preserving the brand, the management, and the local presence. Choosing the right buyer is the single most important decision in the succession process.
If you wish to explore a potential collaboration or present an investment opportunity, we invite you to contact us. We guarantee absolute confidentiality in all our conversations.