The Exit Isn’t the Change. It’s the Transition That Trips Us Up.

I’ve worked with advertising agencies for over two decades, and I’ve seen the full spectrum.

• Avenue A | Razorfish became Razorfish became Microsoft-owned Razorfish became Publicis-owned Razorfish. That was six years. Lots of change.
• PE-backed agencies like Engauge, where 100+ scrappy, Swiss Army knife people grew into matrixed orgs, specialized functions, and “next level” expectations.
• Privately owned shops where the founders swore they were ready to step back… yet, they weren’t.

Across just about every ownership model, I started to notice patterns.

The common thread?

Everyone was dealing with change. Very few were prepared for transition.

Change vs. Transition

Let’s make the distinction clear:

• Change is the external event: new owner, new structure, new strategy. It can happen fast.
• Transition is the internal process: how people come to terms with the change. That part? It’s slow, emotional, and often ignored.

When it comes to succession planning, change is putting a new name on the office door.

Transition is what happens when your team realizes the person with all the answers isn’t coming back… and they’re not sure what to do without him or her.

Why You Need to Pay Attention (Even If You’re “Not Ready Yet”)

Here’s the data:*

• 49% of business owners plan to exit in the next 5 years.
• 70%+ will exit within the next decade.
• And yet… over 60% have no documented exit or succession plan.

That’s not a strategy. That’s a cliff.

The Independent Agency Reality Check

Let’s zoom in on the world I know best:*

• Over 90% of U.S. advertising agencies are independently owned.
• 98% have fewer than 100 employees and most are 10 or fewer.
• 98% generate under $20M in revenue, many far less than that.

And most? Never get acquired. Never pass the baton. They just… fade out.

The agencies you see making headlines, (being bought by holding companies or private equity), are the minority. The rest? They quietly disappear when the founder does.

What Happens Without a Mindset Shift

You wait too long. Vision becomes burnout. Clients sense the drift.

Your agency’s story ends not with a bang… instead… a whisper.

Your team is left scrambling, unsure of who leads or what’s next.

And that’s the part no one talks about: the human cost.

From Change to Transition: The Liminal State

At Liminist, we work in the in-between space. What’s called a liminal state. It’s that messy middle when the old way is gone and the new way isn’t solid yet.

I’ve seen it in business. I’ve seen it in parenting.

My daughter played competitive volleyball. Every season, we would get a new coach, new teammates, new system. Every year started in confusion and friction.

Yet, by the end of the season, after the team had time to adjust, fall apart, rebuild, trust, they’d hit their stride. This year? That group of athletes?

They won a national bid.

The same thing happens inside companies:

You make the change. The leader leaves. The new org chart goes live.

And then? You wait.

Your team struggles. Adapts. Reforms.

Or… breaks apart.

The Three Paths Through the Liminal State

• Collapse. Fear takes over. Key talent leaves. Leadership crumbles.
• Stuckness. The change “happened,” but nothing transforms. Everyone’s in limbo.
• Transformation. The team gets clear. Steps up. Trust deepens. Results soar.

Which one you get depends on leadership. Who is in charge AND how they show up during the in-between.

The Inner Work of Letting Go

Here’s what I’ve learned:

Succession isn’t just a logistical handoff.

It’s the loss of:

• A trusted partner who absorbed what others avoided
• The right to just say “do it” and be obeyed
• Institutional memory sitting in one person’s head
• That glitchy-but-reliable tool you finally understood
• People. Process. Plumbing. All of it gets disrupted.

And the only way to do it well? Is to prepare for the inner shifts too.

What Successful Exits Have in Common

(Yes, even the PE-backed or holdco-owned ones.)

• The founder shifts from personal productivity → enterprise value.
• There’s a leadership team that runs independently of the owner.
• Culture and process are documented, transferable, and trusted.
• Exit planning is treated like a strategy, not a someday wish.

They don’t wait until it feels good.

They plan while it still works.

The Mindset Shift That Changes Everything

• From How do I grow this? → How do I let this grow without me?
• From I built this → I can pass this on.
• From founder identity → legacy architect.
• From client-focused → exit- and equity-focused.

Ask yourself:

If I left tomorrow, would anyone notice or would everything keep moving forward?

If the answer rattles you, you’re not alone. That’s the transition talking.

From Liminal to Liminalist: A Process for What’s Next

We guide agency owners and leadership teams through that “messy middle” with a process rooted in reflection, strategy, and transformation.

LIMINAL is more than a name—it’s the path:

• Learn – What’s really happening beneath the surface?
• Investigate – What needs to shift: people, structure, culture, or all three?
• Measure – Define success beyond revenue: impact, readiness, energy.
• Innovate – Create new ways of leading, collaborating, and scaling.
• Navigate – Manage uncertainty with support and strategic pacing.
• Adapt – Test. Adjust. Communicate. Keep moving.
• Lead – Step into your next chapter—without clinging to the last one.

Your Exit Is Coming. Will It Be By Design?

“The question isn’t if you’ll exit.

It’s how much say you’ll have in the process.”

So… what story do you want your agency to tell after you’re gone?

It starts with one quiet step:

Document your ideal outcome. Even if it’s messy. Even if you’re not ready.

Then surround yourself with people who can help you get there.

You don’t have to do this alone.

You just have to start.

Sources (ChatGPT Deep Research)

U.S. Census Bureau – County Business Patterns

For data on number of employees and distribution of U.S.-based advertising agencies.

IBISWorld Industry Report 54181 – Advertising Agencies in the US (2024)

For revenue distribution, market size, and ownership concentration trends.

Promethean Research – 2023 Digital Agency Market Report

For breakdown of agency size by revenue and headcount.

Exit Planning Institute – State of Owner Readiness Reports

For stats on succession planning readiness and exit timelines.

Teamshares 2024–2025 Research and Insights

For data on small business closures, succession paths, and employee ownership transitions.

U.S. Small Business Administration (SBA)

For stats on business succession and family business transition success rates.

AdAge – Agency Report 2024

For trends in M&A activity, holding company ownership, and independent agency performance.

Campaign US & Campaign Global

For news and analysis on private equity acquisitions and holding company activity.

PitchBook / Mergermarket Deal Data

For breakdowns of agency sale types, PE involvement, and deal volume.

Harvard Business Review – “The Psychology of Change” by William Bridges

For the distinction between “change” and “transition.”