At the latest Forvis Mazars Commercial Truck CFO Connection, succession planners from The Rawls Group led a discussion with leaders on succession planning. Their conversation covered the challenges, opportunities, and nuances that often come with dealerships, especially those in the U.S. that often mix business and family ownership. As finance leaders within these organizations, chief financial officers (CFOs) often navigate the internal discussions and planning within dealerships and can help their dealer owners craft a succession plan that may establish a path for the family legacy and maintain a strong business.
Commercial truck dealer CFOs in the CFO Connection represent dealer groups of all brands and sizes, from Peterbilt and Kenworth to Volvo/Mack and Freightliner, among others, and locations varying from four stores to more than 30. No matter the type of dealer group or the size, succession planning continues to be top of mind.
Below are five focal points from the CFO connection that commercial truck finance leaders discussed, and ongoing considerations to keep in mind.
1. Reframing the Succession Planning Conversation
The succession planning conversation is often difficult because it is surrounded by misconceptions. Many leaders only associate it with premature death, an unforeseen change, or assume that succession planning signals an effort to push out current ownership. The group emphasized that the conversation should begin early and be treated as a core business process as opposed to a family matter. That distinction is essential (and it can be challenging) for family-owned dealerships. Succession planning is a long-term effort that requires a team approach and regular updates as family dynamics, financial considerations, and tax laws evolve.
2. Leadership Transition: Family vs. Non-Family Successors
Commercial truck CFOs discussed the difference between transitioning a business to non-family organizational leaders and handing leadership to a family member. In either case, an effective plan entails positioning the dealership for long-term success through the next generation. The process is not a simple handoff. In fact, this often requires working through generational differences, misaligned expectations, and family dynamics before they become barriers for family-owned dealerships.
In addition, the group mentioned practical tools such as family employment policies, leadership assessments, and personality profiles that can be utilized to support a smoother and more objective transition. A recurring topic included difficulty in getting objective feedback from leaders within organizations when they’re related to the dealer owner, pointing to another layer of nuance when it comes to family-owned businesses.
3. Preparing the Next Generation for Leadership
Integrating family members into the business can be one of the most sensitive parts of succession planning. Dealers often struggle to create appropriate roles and meaningful career paths for family members, while also preserving productivity and morale across the broader organization. One of the most difficult challenges is creating enough leadership space for the next generation to step up, especially when the current owner’s identity is closely tied to the business.
To prepare future successors, the group discussed the value of involving them in advisory boards, fiduciary oversight discussions, and other governance forums, so that they gain exposure to strategic discussions and governance early on. They also emphasized the importance of formal business protocols, governance structures, and, when needed, assessing bench strength and relying on an executive team as a bridge during transition.
4. Governance & Transition Execution
Governance is critical when it comes to preserving both family harmony and business performance. This can be achieved by creating a shared vision and addressing conflicts between family interests and operational needs, and working to reduce ambiguity and prevent tension through formal policies (centered on benefits, employment standards, and stock ownership). In addition, structured governance bodies such as a family business council or management advisory boards can support strategic planning and help the organization shift from family-centric to business-focused decision making.
Finally, participants noted that successful transitions typically happen over a three- to seven-year period rather than an abrupt change. Thus, it is crucial to engage manufacturers proactively and understand any successor approval requirements while the dealer is in good standing. This future-thinking approach helps to prepare dealers instead of waiting for a crisis to incite action.
5. Managing Family Dynamics & Readiness
A CFO connection throughline was the difficulty in managing generational tension when younger family members seek leadership roles before they are ready. In response, speakers recommended using external facilitation, formal position descriptions, mentor teams, and 360-degree feedback to clarify expectations and assess readiness. More broadly, the group agreed that family involvement can both strengthen and complicate business performance, and that the most successful family businesses may operate as meritocracies while still maintaining family ownership and control.
The Key Takeaways for Commercial Truck Dealers & CFOs
For commercial truck dealers, succession planning may be most effective when it is viewed as an ongoing strategy to protect value, preserve continuity, and position the business for its next chapter. As this discussion made clear, long-term success requires thoughtful governance, leadership development, operational readiness, and alignment between family and business goals. By addressing these areas early and holistically, dealer groups can help to reduce disruption, strengthen confidence across stakeholders, and create a transition plan that supports both legacy and long-term performance.
How Forvis Mazars Can Help
Our dealerships practice unit at Forvis Mazars works with you to help drive profitability, avoid risk, increase efficiencies, and enhance productivity. We provide a variety of services for dealerships nationwide, ranging from tax compliance and planning to assurance and consulting.
To learn how our experience and insight can help dealerships prepare for what’s next, please reach out to a professional at Forvis Mazars.