Strandberg: Stay, lead or step away?

Not long ago, I heard from a sharp, young, second-generation multi-store tire dealer who had been following some of my recent articles. He asked a simple question: “Why don’t we talk more about succession planning within the family?”

It’s a great question and one we don’t spend enough time on as an industry. We talk about consolidation, we talk about private equity and we talk about growth. But we don’t talk enough about what might be the most important decision a family business will ever face: Who’s next?

The reality is that succession within the family is both one of the greatest advantages and one of the most complicated challenges in the automotive aftermarket and family-owned businesses in general. On one hand, you have built-in trust, long-term alignment and a deep understanding of the business that can’t be taught overnight. On the other, expectations can be unclear, roles can blur and pressure can quietly build. And then there’s the part that doesn’t get discussed enough: Sometimes the passion simply isn’t there.

I’ve lived a version of that decision myself. I grew up around a family business, an automotive equipment distribution business, but my parents encouraged me to go get experience elsewhere first. That was their advice and it was what I wanted, as well. I didn’t want to step into the business and become a slightly worse version of my father. I wanted to bring something new to the table — a different perspective, a broader skillset and ideally, a way to help the business evolve. So I left, learned and built that perspective before eventually coming back.

But the most important moment for me came later. When the opportunity arose to sell the business to private equity — an outcome that would set my parents up for life, I had to ask myself a very real question: Did I have enough passion to justify putting that opportunity on hold? For me, the answer was no. That’s not the right answer for everyone, but it was the right answer for me. And that’s the point. These decisions are deeply personal.

There is a very real case for the next generation stepping in and leading. The automotive aftermarket, including the tire dealership space, remains essential, fragmented and full of opportunity and second-generation operators often have a unique advantage. They understand the business at a foundational level, they’ve grown up around it and if they’ve gained experience elsewhere, they can bring modern thinking into a proven model. Some of the most successful operators we see today are second-generation leaders who have professionalized operations, implemented better systems and scaled their businesses in ways the first generation never could. There is a real opportunity to take what was built and make it bigger, better and more valuable.

At the same time, there’s a very real case against it. Running a tire dealership is demanding. It requires constant problem solving, the ability to manage people and the discipline to think strategically in an environment that is only getting more complex. And more than anything, it requires genuine interest — not obligation, not expectation and not a sense of duty, but real interest. Without that, it becomes difficult to lead effectively or to justify passing up other opportunities, including the chance to sell a business at an attractive valuation. Forcing the wrong person into leadership can do more harm than good, both for the business and for the family.

When a second-generation transition does make sense, the best outcomes tend to follow a similar pattern. The next generation brings outside experience, returns with a fresh perspective and earns their role within the organization over time. Leadership isn’t handed down. It’s built through credibility, relationships and results. At the same time, families who navigate this well tend to have open, honest conversations about the future, including growth ambitions and exit options, rather than assuming things will simply work themselves out.

The industry is at a unique moment. Many first-generation owners are approaching retirement, while the next generation is deciding whether to step in. At the same time, buyers —  from regional consolidators to private equity — are as active as ever. That creates real optionality: continue building, partnering and growing or selling and realizing the value that’s been created. When family is involved, those decisions carry even more weight.

There is no universal right answer — only the right answer for your family. For some, the next generation will take the business to new heights. For others, the right move will be to transition the business and capture the value that’s been built. Both outcomes can be successful. In both cases, the right answer often makes itself apparent following some tough, real conversations.

If you’re a second-generation operator — or thinking about becoming one — the question to ask yourself is simple: “Do I want to build this?” Not because it’s expected, not because it’s available, but because you genuinely want to. In the end, that’s what separates obligation from opportunity. And in this industry, that difference matters.