Buyers invest in businesses – but they back people. Are your team and succession plans helping or hindering value?

In Ireland’s mid-market, many high-performing businesses are led by a small number of highly capable individuals. But for a deal to succeed – particularly a full exit, it’s critical to show that leadership, talent and continuity won’t walk out the door post completion.

We look at how succession planning, incentive design and team alignment can increase deal value and deliverability.

Why people drive valuation and deliverability

In a sale or growth capital raise, buyers will ask:

• Which team members are staying?
• Who’s critical to continued performance?
• Are the right people motivated to deliver post-deal?

Poor alignment can derail a transaction. Strong, stable teams with aligned incentives attract better terms, smoother diligence, and higher buyer confidence.

Leadership alignment is one of the most overlooked, yet most decisive factors in a successful transaction. Buyers invest in continuity and confidence.

Key people factors that influence a deal

1. Succession planning and key person risk
Buyers want to know the business can thrive beyond the founder. If decision-making is concentrated in one or two individuals, a clear and documented succession strategy is essential – whether that means promoting from within, bringing in external talent, or reshaping roles in advance of a process.

2. Management incentive alignment
Equity-based plans, like growth shares, give key leaders a stake in value creation. These are increasingly appreciated by private equity buyers and often influence retention and post-deal terms. In the Irish market, incentives need to strike a balance. They should align with likely buyer expectations, while also reflecting the specific motivations of the current team and shareholders.

3. Retention strategy
Deal processes create uncertainty for staff. Without a clear plan, businesses risk attrition or distraction. Building a retention approach, including transparent communication and recognition of key contributors, is vital to protect business performance during the process.

4. Cultural continuity
Irish businesses often distinguish themselves with agile, close-knit cultures. Buyers will pay attention to whether that culture can scale – and whether the wider team shares the growth ambition.

5. Personal motivations
Incentives aren’t always financial. Some team members may value job security, career development or strategic involvement. Understanding individual motivations can help you shape a deal structure that supports retention and post-deal success.

How RSM Ireland can help

We support businesses to:

• Design and implement team restructuring or succession plans.
• Develop tax-efficient management incentive schemes.
• Assess cultural resilience and leadership bench strength.
• Undertake formal HR due diligence, across leadership teams and the wider employee base.
• Coordinate tax and legal advice to ensure ongoing compliance. 

In the Irish market, buyers are increasingly sophisticated, but people risk remains one of the most common deal-breakers. Plan early, and your team can become one of your biggest value drivers.