Succession Done Right: How Cobra Navigated Leadership Transition

Exits are not only about numbers on a balance sheet. They are about people, legacies and how businesses evolve through change. One of the most complex moments in that journey is handing over the reins of leadership while preserving what made the business valuable in the first place. 

For our client, Cobra Group, succession was central to its success story. 

A Founder’s Maturity 

Cobra’s founder had built the company from the ground up, holding a 70% shareholding after decades of work. Yet he recognised that the future of the business would require a different skill set and fresh energy. More than a decade before the eventual transaction, he brought in a younger CEO designate to work with him to take the business forward. 

Finding the RIGHT candidate was a long and tough journey, with some poor appointments being made initially. This was no token appointment. The founder made a conscious decision to start taking a step back and allow the new CEO to grow into the role. That required unlearning old ways, setting aside ego and embracing ideas that may have looked different from the path he had walked. The result was a rare combination: the experience and wisdom of the founder balanced with the vision and dynamism of new leadership. 

A Smooth Handover 

When the time came to execute the deal, the transition had already been tested and proven. The founder reduced his shareholding and took on a non-executive role. The CEO and his management team assumed full operational control, with the benefit of continuity and credibility in the eyes of both employees and external stakeholders. 

This careful planning ensured that the company’s legacy was not diluted in the process. Instead, it was strengthened, because the business was positioned to thrive under new leadership with the founder’s blessing and continued guidance from a governance perspective. 

Why Succession Matters in M&A 

For many business owners, succession is one of the hardest parts of an exit journey. It is not just a practical handover of authority; it is an emotional transition that asks founders to entrust their life’s work to someone else. 

Handled poorly, succession can reduce buyer appetite. Investors want certainty that the business can operate independently of its founder. If everything still revolves around one person, buyers see risk. But when succession has been handled well, it reassures acquirers that the company is stable, resilient and ready for its next chapter. 

In Cobra’s case, succession planning created three forms of value: 

• Continuity: The new leadership team had already proven their ability to run the business. 

• Stability: Employees, customers and suppliers were confident in the company’s direction. 

• Growth: The buyer could clearly see how Cobra would expand under leadership aligned with their strategic vision. 

Lessons for Other Business Owners 

Cobra’s story illustrates an important truth: succession done right is not about replacing the founder, it is about future-proofing the business. 

For owners considering a sale in the coming years, the message is clear: start planning leadership transition early. Build a strong second tier of management. Empower them to lead. Test their ability to operate independently. And when the time comes, structure your exit in a way that cements their authority and secures continuity. 

We see this time and again. The most successful transactions are those where founders take a long-term view, balancing their personal goals with the company’s future. That often means beginning succession conversations years before a sale is on the horizon. 

Setting Up the Next Chapter 

Exits are not an ending. They are a new beginning — for the founder, for the team and for the business itself. Cobra’s founder understood this. His maturity and foresight enabled a seamless leadership transition, ensuring that the business he had built would not only survive his exit, but thrive in its next chapter.