Academia de Guvernanță. Succession in Family Businesses: How to Overcome the “Inability to Let Go” Syndrome and Prepare for the Future
In Romania, tens of thousands of companies founded after 1990 are approaching a critical moment: succession. Yet for many entrepreneurs, the idea of stepping down is either postponed or treated superficially. On Academia de Guvernanță, Adriana Lobdă (founding member of ENVISIA) and Adrian Florea (Executive Director at Concelex) explored the challenges and solutions surrounding this essential leadership transition process—from current leaders to future ones—for the sake of long-term business sustainability.
Succession – A Neglected Priority in Corporate Governance
Succession is a key element of corporate governance, essential for an organization’s stability and continuity. It’s a planned transition process, designed to prevent and manage potential internal crises while ensuring steady leadership adapted to new realities.
“Succession is about ensuring that the leaders taking over are right for the organization, have the necessary capabilities, and that the outcome is the result of a robust process. Because today’s organization is no longer the same as yesterday’s,” says Adriana Lobdă. “That’s why awareness of the necessary steps in the succession plan is crucial. It’s not a simple process, but when well-prepared, it becomes a strategic element of governance.”
The First Generation of Romanian Entrepreneurs Faces Succession
Adrian Florea has been involved in family business since 2011, following a career in the corporate sector. Once immersed in an entrepreneurial environment, he began to reflect on the future of these companies as founders retire—a process that can take many forms. This reflection led him to a deep analysis of succession as a core component of organizational sustainability.
Florea based his analysis on interviews with founders still active in their businesses, many of whom are over 60 years old but have not yet addressed succession.
One of his key findings? Romania is facing a historic challenge: tens of thousands of companies founded in the 1990s are still active, and their founders must decide what comes next.
“Family businesses represent 70–80% of global GDP. In Romania, there are almost 15,000 companies founded in 1990–1991 that are still active. The entrepreneurs who started them are now around 60 years old and, whether they realize it or not, succession is approaching.”
Globally, two out of three companies do not survive their first generational transition—either they shut down, are sold, or dissolve. When successors are faced with the idea of taking over, many realize they are not interested or don’t identify with the responsibility, as society and values have evolved. Today’s generation is different from the one that founded these businesses 30 years ago—leading, in many cases, to the sale or closure of these companies.
A successful succession plan must, first and foremost, be accepted.
Why Succession Fails: Lack of Planning and Resistance to Change
Florea’s research shows that most founders lack a succession plan and don’t grasp its urgency. Many simply assume the first child—typically the son—will take over the business, without a serious discussion.
Adriana Lobdă identifies several additional barriers: prioritizing day-to-day challenges, lack of a clear vision of a successor, resistance to change, and fiscal uncertainties. While Romania doesn’t face the high inheritance taxes seen in other countries, the lack of economic predictability is a challenge in itself.
“Entrepreneurs tend to focus on immediate issues—what’s urgent today or tomorrow—and pay little attention to succession, which is often viewed as a secondary or future concern. Some of the difficulty also lies in not identifying a successor or lacking a clear vision for one. Then there’s resistance to change, and legal or fiscal hurdles. We don’t face the inheritance tax burden of the UK, for instance, but we do have fiscal and economic uncertainty. All of these must be anticipated and planned for.”
Weak Governance – An Obstacle to Succession
Another important conclusion from the study is the absence of a governance culture in many family businesses. Without clear rules, responsibility transfer becomes difficult.
“An advisory board can be a solution—it brings structure, accelerates the process, and offers reassurance when the founder hesitates,” says Florea.
He notes that in the absence of governance, founders often find comfort—there are no formal rules passed down from generation to generation or from one CEO to the next.
At the same time, entrepreneurial organizations can view succession not just as a challenge, but as an opportunity to strengthen their structure. For entrepreneurs who hesitate to start the process—whether due to time constraints or personal reluctance—setting up an advisory board can be a highly effective solution. According to Adriana Lobdă, such a body helps structure and accelerate the transition, offering support when decisions are delayed or hindered by uncertainty.
The “Inability to Let Go” Syndrome and the Role of Advisory Boards
One of the biggest challenges in succession is the founder’s personal attachment to the company. Adrian Florea calls this the “inability to let go”—the reluctance to give up control.
“Trust is a key ingredient in the succession process. A founder has built their own reporting, monitoring, and control systems—some of which don’t necessarily align with modern capitalism: visions, missions, long-term strategies, budgets, KPIs. The company’s success is their own success, and now they have to let go of it. An advisory board helps founders approach this topic in a more professional, structured way.”
Key Takeaways from This Article:
- Succession must be strategically planned—not left to chance.
- Corporate governance is critical for a successful leadership transition.
- Advisory boards can facilitate the process and help overcome emotional roadblocks for founders.
Adrian Florea is an alumnus of the program developed by ENVISIA and Henley Business School – Postgraduate Certificate in Board Practice and Directorship, an educational journey dedicated to board members, top leaders, and entrepreneurs preparing for the challenges of succession and modern governance. Experienced business professionals have already joined this program, now in its 9th edition. More information here.
Read more about the interview here.
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