Consumer & Retail: Leadership, Legacy, and the Art of Letting Go
A leadership transition is one of the most defining moments in a company’s journey. In the Baltic consumer and retail sector - where family-owned businesses form the backbone of the economy - succession often determines whether a legacy endures or fades.
In this article, Terje Eichelmann, Amrop Estonia, explores why effective succession planning is not a single event but a long-term strategic process. Drawing on Amrop’s experience in leadership assessment and executive succession within M&A contexts, he highlights the importance of preparing future leaders early, aligning talent development with strategy, and embedding continuity into the organization’s DNA.
At Amrop, we partner with founders, boards, and investors to ensure leadership continuity that sustains both performance and purpose - because true legacy lies in preparing others to lead the future.
The Importance of Long-Term Planning
“The key message is that succession planning should start many years in advance, ideally 20 or more, long before the actual transition is imminent, Eichelmann emphasizes. “Preparing the next generation of leaders is not always about bloodlines. The next generation of leadership may come from within the family or it may come from trusted professionals who share the same values and commitment to growth. What matters most is the alignment between purpose, capability, and vision, and ensuring a smooth transition when the time comes. It is crucial to educate owners and family leaders about the importance of proactive succession planning, especially as they approach retirement, to secure the longevity and legacy of the business.”
Succession Readiness and M&A Challenges
In the context of M&A, the lack of succession readiness frequently emerges as a major barrier. During M&A due diligence, the talent gaps reveal themselves: no ready CEO, no future CTO, no leadership bench deep enough to carry the vision forward. The reality is, succession isn’t an event, it’s a strategy. It starts long before retirement looms or investors knock. True readiness takes years, sometimes decades, of foresight. It’s about nurturing potential, mapping future scenarios, and ensuring leadership continuity becomes part of the company’s DNA.
“For example, one of our clients waited 2.5 years after buying the company before seeking support, during which time the company struggled to build new leadership capacity from the existing team,” shares Eichelmann. “Even with extensive training and development efforts, these leaders, shaped by an autocratic style, often find it challenging to adopt new leadership approaches, particularly if they are over 45 years old. This often leads to the need for external recruitment to fill critical roles, which can be costly and time-consuming.”
Integrating Succession Planning with Strategy and Investment
Finally, succession planning should be integrated into overall strategic planning, particularly during M&A or investment processes. It’s ideal to start assessments early, before a deal is finalized, to identify gaps in management and board composition, and to develop measures that prepare the team for future growth or potential exit strategies. “For mature companies, especially those with institutional investors, succession readiness becomes essential for maximizing valuation and ensuring a smooth transition to the next stage,” says Eichelmann. “Regularly revisiting and updating the team’s competencies and strategic alignment is vital, whether entering new markets, launching new products, or supporting long-term growth.”
That’s where Amrop steps in - not as a transactional recruiter, but as a strategic partner. “We work alongside founders, boards, and investors to integrate leadership and succession planning into broader business strategy,” Eichelmann concludes. “From assessing management teams before M&A to preparing successors for long-term growth, we help organizations secure the one asset no financial model can fully measure: leadership continuity. Because in the end, succession is not about stepping down, it’s about ensuring your legacy stands tall.”
Perhaps the most powerful act of leadership isn’t holding on. It’s preparing others, and the business you’ve built, to thrive long after you’ve handed over the reins.
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To find out more, reach out to Terje Eichelmann or the Global Consumer & Retail Practice members in your country.