The passing of both of my parents over the last year has brought close to home the fact that many of the leaders who built the industry during the 1970s to the 1990s are retiring or graduating to the next life. I have also had a number of conversations with people over the last year who have sold their business or are considering selling their business.
The motivations tend to vary. Some see an opportunity to sell and make a good payday. Some are concerned about competitive pressures and are looking to join with a larger enterprise. Some are family businesses without an heir who wants to take over the business. And for some, it is a more tragic situation, such as the death of an owner, a health scare, a family feud or even a bank calling a large loan.
Everyone that I have talked to has admitted that selling their business is very personal and a difficult decision. In many cases, these entrepreneurs have spent the last 10 to 30 years or more building their business. The employees are like family members, even those who don’t share the same last name.
I am reminded of my conversation back in April with Richard Berry, who decided to sell his company to UFP Industries. He built his company from a hobby in 1989 into a manufacturing powerhouse with an ultra-modern facility that can produce 95,000 pallets per month. Berry wanted to go out on top even though he plans to continue working in the business. He said, “We’re selling the business on a huge high note.”
The business wasn’t in trouble. He had a second generation, his son Curtis, running day-to-day operations. Sales were strong. And he still decided the time was right to bring in a bigger partner. Richard admitted, “Finding quality workers continues to be a real challenge.” He believed that joining with a larger organization would provide more resources when it comes to managing HR and regulatory complexity. Also, customers are changing. Many are now national accounts that want to deal with one supplier instead of twenty regional ones. Becoming part of a larger company allows you to compete for business that you might not get. Richard didn’t sell to retire. He sold to position his company for the future.
Not everyone who has sold their business is happy with their decision. I have also talked with some business owners who wish they hadn’t sold. They found out that they really loved what they did and didn’t like handing control over to another person. In some cases, they spent years building a positive culture and later found out that the new owners weren’t capable of leading the same way the founder was.
The reality is that nobody lives forever. But when it comes to family business succession, many pallet companies don’t have a full strategy in place. While our team is still crunching numbers, a preliminary look at the Industrial Reporting 2026 Wage and HR Survey data suggests that only about a third of respondents have a full plan with a successor named. The rest are working from partial plans, eyeing a sale, or haven’t addressed it at all. See Graphic 1.
If you need help evaluating your family succession options, this issue includes a story on family business succession strategies and pitfalls. It is a good resource for anyone in this business transition moment. See the article on page 52.
Some of you reading this article should absolutely stay independent. You have the right team in place and a strong customer base. You have the drive to grind it out. Others should be picking up the phone and talking to a broker or a strategic buyer this year. The only way to know for sure is to ask yourself some hard questions. So, I have come up with some key questions that can guide your process.
1.) Do I have a viable succession plan in place? Does the next generation actually want to run the business? Are they capable of doing it? Wanting your kids to take over and them wanting to take over are two very different things.
2.) Can I still compete for labor? If you’re structurally at a disadvantage on wages, benefits or career paths compared to larger operators or other industries, that gap tends to widen, not close.
3.) What percentage of my revenue is tied to national or multi-location accounts? Is the business well positioned to retain them? Big customers increasingly want fewer, bigger suppliers. This doesn’t mean you have to sell though. You could develop regional alliances or work with national brokers.
4.) Do I have access to the capital I’d need to reinvest in equipment, automation and facilities? Standing still in this business usually means falling behind.
5.) How dependent is this company on me personally? If you got hit by a bus tomorrow, would the business keep running, or would it unravel? Buyers ask this question too, and it drives valuation.
6.) What is my company actually worth right now? Get a real, professional valuation before you need one, not after. Many entrepreneurs try to just guess this number, but a true third-party evaluation can tell you where you truly stand.
7.) What do I want my life to look like in five years, and does staying the owner of this business fit that picture? Some owners haven’t honestly answered this for themselves. What you want typically impacts what you do and how well you do it.
8.) If I sold today, would I be selling from strength or from necessity? The best deals, like Berry Pallets’, tend to be made from a position of strength. If your company isn’t ready to sell yet, maybe your highest priority needs to be to get it into a position to sell in the next few years.
Also, there are other options besides selling your business. Maybe you should enter into a strategic partnership? That’s what two Tennessee pallet companies did earlier this year. Read the story on FreeFab Pallet on page 34.
Lastly, some friends, readers and advertisers have reached out sharing their condolences for the loss of the two founders of our company. We appreciate all the love and support that we have received from our pallet friends and family. The good news is that my parents had a strong succession plan in place. My brother, Scott, and I are ready to lead into the future. Read more about what this will look like on page 73.
