New Index Reveals Owners Delegate Operations Before Strategy

The McFarland Group, an Omaha-based advisory firm, has released the first findings from its Transferable Value Index, a twelve-question assessment that measures how a closely held business would perform without its owner. The data reveals a consistent pattern: owners delegate operations and client relationships before they are willing to let go of strategic direction.

Among all respondents, the question about who determines the business's next move scored an average of 2.94 on a five-point scale—the only question to fall below 3.0. The next lowest-scoring question, customer diversification, averaged 3.23. This gap highlights a significant area of owner dependence.

Even in the highest-performing category, which the Index classifies as Transferable Enterprises, owners score 4.58 on client relationships and 4.12 on closing new business, but strategic direction lags at 3.30. Of the 52 businesses assessed, 33 score well on both dimensions the Index tracks, but the strain concentrates on the independence dimension, with 18 of the top 30 businesses still having the owner as the sole decision-maker on company direction.

“Owners do let go, and that surprises people,” said Byron McFarland, founding principal of The McFarland Group. “What the data shows is that letting go happens in an order. Operations go first. Relationships follow. The decision about where the company is headed is the one an owner holds onto longest, and it is the one that most determines what the business is worth without them.”

This finding carries direct implications for business valuation. Buyers, lenders, and successors evaluate how much of a company's forward direction depends on a single individual, which shapes price, deal structure, and underwriting decisions. A business that cannot determine its next move without the owner present carries a discount that surfaces in every diligence process.

The full findings, including the twelve-question breakdown and methodology, are published in McFarland's letter, “The Last Thing You Let Go Of,” available for download at themcfarlandgroup.com. The Transferable Value Index itself is free at transferablevalueindex.com, scoring businesses across two dimensions: Business Durability and Owner Independence.

The Index's data, reflecting 52 assessments submitted through July 9, 2026, challenges the assumption that owners are universally resistant to letting go. Instead, it shows a clear sequence of delegation, with strategy being the last holdout. For Texas businesses, where closely held enterprises are the backbone of the economy, understanding this pattern is crucial for planning ownership transitions and maximizing company value.

As The McFarland Group continues to expand its response set, the Index promises to provide ongoing insights into how owners can build more transferable businesses, ultimately benefiting the broader economic landscape.