Business Transition Tips and News

A Tale of Two Transitions: Three Lessons in Exit Planning

Two of the most prominent businessmen in Jacksonville, Fla., exited their companies this week, under different terms but using common means. Other owners can learn from their examples.

Wayne Weaver, principal owner of the Jacksonville Jaguars has sold the National Football League team. Herbert Peyton, founder and president of Gate Petroleum Co., is transferring control of the chain of service stations and convenience stores to his son, John.

Though Weaver exited through an external sale and Peyton through an internal transfer, both said the time was right for change and that they will spend more time pursuing personal interests while their successors continue to grow the businesses and support their communities. Weaver will be 77 years old this month, while Peyton turns 80.

Here are three exit-planning lessons that small-business owners can learn from Weaver and Peyton.

1) Envision life after your business.

As the first owner of the Jaguars, Weaver had little free time while steering the organization through almost 20 years of football, business and community involvement. He will now devote more time to family and travel. In an interview published on Dec. 31 he told The Florida Times-Union:

“I will have an office and I will have a place to get up every morning to go to when I’m in town and we’re not traveling and not spending time with family. We’ll just have a lot more free time. We won’t have to make 8 o’clock staff meetings.”

Peyton opened the first Gate service station in 1960, in Jacksonville. The company has grown to more than 225 locations and also has resort and real estate operations. In a Jan. 3 letter to employees announcing his resignation as president, which was posted online by the Jacksonville Business Journal, Peyton wrote:

“Anticipating this transition, several folks have asked where I will go and what I will do. Frankly, I am not sure, but training and fitness will continue right on. I am certain, however, about what I am not going to do. I am not going to be a distraction to management. I will not be involved with the day-to-day operation of the company or second guess the decisions that are made. I will help when needed and offer advice when asked—and on occasion, when not asked. And, I will keep my office and continue to visit various operations from time to time.”

 2) Determine your goals.

Weaver was adamant that the Jaguars remain in Jacksonville. He told the Florida Times-Union:

“At some point we had to have an exit strategy and what was really important to me was that the team stay in Jacksonville. I found the right person and the right family that’s going to come in and continue to build the legacy we started here in Jacksonville, so that was my biggest motivation of timing right now.”

Peyton has been unwavering in his determination to keep Gate Petroleum in the family. In a Florida Times-Union article published in July 2001, he said of his son and company: “

"His mission is very clear, and that is to carry the company to the next generation, and after that, to the next generation," said Herb Peyton, who at some unspecified future date will step into the role of chairman and turn over daily management to his son.

"We have no plans or no desires to go public or to merge or to sell out," he said.

3) Choose your successor.

Weaver sold the Jaguars to Illinois businessman Shahid Khan in a deal that closed Jan. 4, reportedly for $770 million. The terms were similar to those that Weaver first presented to Khan on a cocktail napkin in a one-to-one meeting in a hotel bar in late 2011. They sealed the deal with a handshake; then they worked out the details with their staffs, advisors and league representatives.  

The deal was the culmination of months of meetings and communication between Weaver and Khan as the two got to know each other. “Very few people were involved from his side or my side,” Weaver told The Florida Times-Union. “It was a very small circle. There were a lot of phone calls and a lot of texting back and forth. Face-to-face meetings, probably close to a dozen.”

Weaver cited Khan’s integrity, values and business acumen as factors in his decision to sell. Upon completing the deal on Jan. 4, Weaver said, “Parting with the Jaguars is not easy but we have great confidence in Shad and his family that the franchise is in good hands.”

As well as Weaver got to know Khan, Peyton was even closer to his successor, his son John. The younger Peyton is a former mayor of Jacksonville and a long-time Gate executive. In his Jan. 3 letter to employees, the father wrote:

“In life, as in business, timing is everything. I believe this is the time for GATE to transition to the next generation. I am sure you have observed family businesses where founding owners have been unable to gracefully transition leadership. I am determined not to let that happen in our company. I am absolutely confident John’s experiences both within and outside of our company ideally suit him to meet the challenges of managing this organization.”

It is now up to the new leaders of the Jaguars and Gate Petroleum to build upon their predecessors’ successes. Wayne Weaver and Herbert Peyton have greatly influenced their community and their companies for decades, positioning their organizations to prosper for years to come.

With their transitions from their businesses behind them, the next phases of their lives are squarely ahead.

To learn how you can create a transition plan that allows you to control the terms of your exit, download our complimentary e-book, "Transition Strategies for Business Owners." The quality of your plan will determine the success of your transition.