I Just Inherited a Business. Should I Run It or Let It Go?
Losing a loved one is never easy, and inheriting their business often adds emotional and practical weight to your shoulders. Suddenly, you’re not only grieving but also facing decisions about operations, finances, and people who depended on your loved one for leadership. Whether or not you’ve had experience in business, this can feel overwhelming.
The good news is, you don’t have to figure it all out overnight. This article guides you through the essential steps. From handling the transition to deciding whether to continue, delegate, or sell the business, you can make well-informed decisions that honour both your loved one’s legacy and your own peace of mind.
Facing an inherited business can feel overwhelming.
Get your free checklist to guide you through the next steps at your own pace
1. First Steps: Handling the Transition After a Parent’s Passing
Before diving into day-to-day management, it’s important to start with structure and clarity.
Take Time to Process: You’ve just experienced a major loss, so allow yourself to grieve. Trying to make big business decisions too soon can lead to emotional or rushed choices.
Gather Key Legal and Financial Documents: Collect the will, estate documents, ownership records, bank statements, contracts, financial reports, and any documents showing outstanding debts or obligations.
Understand the Business’s Governance Structure: Check whether there’s a board of directors, co-owners, or managers already in place.
Meet With Key Stakeholders: Speak to the accountant, lawyer, and senior staff to understand ongoing operations. Reassure customers and suppliers that the business remains stable during the transition.
2. Understanding the Business You Inherited
Once the paperwork is in order, take time to truly understand what kind of business you’ve inherited.
How profitable is it?
Review recent financial statements, tax filings, and sales reports to assess income trends.
What are the liabilities?
Identify loans, debts, or unpaid supplier accounts that could impact cash flow.
Who manages daily operations?
Determine if operations depended heavily on your late parent or if there’s a capable team in place.
Does it have growth potential?
Analyse market conditions to see whether the business can expand or if it’s declining.
Are there succession plans?
Some businesses already have a clear transition strategy outlined in legal documents, which can make the process easier.
3. Your Next Big Decision: What to Do with the Business
After understanding the company’s financial health and structure, it’s time for the big question, what next?
Do You Want to Run the Business?
If you’re genuinely interested, invest time in learning the industry and market. Enrol in management or finance courses and consider hiring experienced leaders to guide operations while you learn.
Should You Hire Someone to Run It?
If you prefer to stay hands-off, bring in a CEO or business manager who can operate it on your behalf. You retain ownership while ensuring professional oversight.
Should You Sell Your Ownership?
Selling can be the right move if the business isn’t aligned with your goals. Get a formal valuation before making any sale decisions.
Pro Tip: Avoid rushing into major choices. Spend the first few months observing and understanding the business before taking long-term action.
4. Professional Insight: An Accountant’s Perspective
As an accountant, I’ve seen many people inherit businesses they never expected to manage. The key is to stay calm and act strategically.
Don’t Assume the Business Is Financially Healthy: Even stable-looking businesses may have hidden debts or tax issues.
Separate Personal and Business Finances: Keep accounts and expenses clearly divided to prevent confusion.
Get a Business Valuation: A professional valuation reveals the true worth of the company before you make big decisions.
If You’re Keeping It, Learn the Basics: Understanding financial statements, budgeting, and leadership will help you make smarter choices.
Work With Experts: Engage an accountant, financial adviser, and industry consultant to help you make decisions confidently and protect your family’s legacy.
5. Checklist: What to Do When You Inherit a Business
Confirm Your Ownership and Legal Status: Review the will, estate, and business registration. Complete legal transfers if needed.
Assess Financial Health: Study financial reports, tax filings, and debt obligations. Consider a valuation before selling.
Identify Key People and Roles: Meet senior staff and suppliers to understand who manages daily operations.
Decide Your Role: Choose whether to run, delegate, or sell the business.
Secure Business Finances: Open proper business bank accounts and ensure payments continue.
Communicate Clearly: Keep employees, customers, and partners informed about continuity plans.
Plan Ahead: Whether you decide to grow or exit, map out a clear strategy and timeline for the business’s next chapter.
Final Thoughts
Inheriting a business is both a responsibility and an opportunity. While it can feel intimidating at first, taking steady, thoughtful steps will help you make the right decisions. Start by assessing the company’s financial standing and operational structure. Surround yourself with trusted professional accountants, advisers, and legal experts who can guide you through each stage.
Remember, you don’t have to run the business if it isn’t right for you. Selling, delegating, or even pausing to think things through are all valid options. What matters most is that every decision you make safeguards your future and honours the legacy left behind.
Facing an inherited business can feel overwhelming.
Get your free checklist to guide you through the next steps at your own pace
