Having a robust succession plan framework in place matters. Explore the 7 pillars of Blue Harbour’s succession planning framework and how it works in practice.
Internal succession through management buyouts, employee-led buyouts, or employee ownership trusts offers a practical way to protect continuity. Other countries have acted to support these models. Australia has not. This is now a public policy issue as much as a private business decision.
Models and principles are powerful, but they gain real meaning when grounded in lived experience. The following cases illustrate both successes and cautionary lessons. They show how internal succession plays out across different industries, structures, and jurisdictions.
The first 100 days after an MBO, ELBO, or EOT are the most vulnerable period. Employees are watching for signs of continuity. Customers and suppliers want reassurance. New owners are adjusting to responsibilities they have never carried before. A clear plan reduces uncertainty and builds confidence.
The transition from manager to owner is a mindset shift as much as a technical step. Preparing the team before and after the deal is one of the most important investments a founder can make.
The concessions, structures, and rules are complex and highly dependent on your eligibility and timing. Here are some of the legal considerations in Australia for employee succession.
Blue Harbour Capital is a specialist advisory firm helping privately owned businesses design and execute founder-friendly succession plans including management buyouts, employee transitions, and other tailored exit strategies.
Blue Harbour Capital’s inaugural newsletter is packed with succession insights, events, resources and tools, guest articles & more for Australian SMEs looking into employee-led succession.
This contributed article from Mahoneys, authored by partner Rhys Williamson, covers the legal foundations for employee led succession. It touches on issues such as contracts, intellectual property, regulatory approvals, documentation and governance when ownership changes hands, and offers a practical checklist for founders considering ELBOs, EOTs and related structures.
Giles’ piece explains how the Valloop and Guy Carpenter structure transforms institutional balance sheets into capacity for employee led buyouts in SMEs with 10 to 250 staff and turnover between 2 and 50 million pounds. He explores why banks and traditional lenders often struggle to fund internal buyouts without heavy personal security, and how surety backed structures can give founders vendor certainty while allowing employees or management to acquire without risking their homes.
Blue Harbour Capital, in partnership with global employee ownership platform Valloop, today announced the launch of Australia’s first complete ecosystem for employee-owned business succession.
This contributed piece is authored by Ben Lightfoot, an experienced CEO and business coach. It explores the importance of coaching for both founders and management teams when planning succession and navigating an employee led buyout. The article also acknowledges how Blue Harbour collaborates closely with independent business coaches while remaining focused on advisory and post transaction support rather than providing coaching as a direct in house service.
Why it matters for the economy, regional communities, and the