The McFarland Group has released the inaugural findings of its Transferable Value Index, a twelve-question assessment measuring how a closely held business would perform without its owner. The data reveals a consistent pattern: owners delegate operational tasks and client relationships before relinquishing control over strategic direction. Among all respondents, the question of who determines the company's next move scored the lowest, averaging 2.94 on a five-point scale, the only question to fall below 3.0. The next lowest, customer diversification, averaged 3.23.
This pattern persists even among the most advanced businesses. In the Index's highest-scoring category, Transferable Enterprises, owners scored 4.58 on client relationships and 4.12 on closing new business, yet strategic direction lagged at 3.30. The data also challenges assumptions about owner dependence: of 52 businesses assessed, 33 scored well on both dimensions tracked, and only nine fell short on business durability. The strain concentrates on the independence dimension, particularly on the strategic direction question. Among the 30 highest-scoring businesses, 18 still have the owner as the sole decision-maker on company direction.
Byron McFarland, founding principal of The McFarland Group, noted, "Owners do let go, and that surprises people. 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."
The findings carry direct implications for business valuation. Buyers, lenders, and successors evaluate how much of a company's forward direction depends on a single individual, shaping price, deal structure, and underwriting decisions. A business that can only determine its next move when the owner is present carries a discount in every diligence process.
McFarland's full letter, "The Last Thing You Let Go Of," along with complete findings, the twelve-question breakdown, and methodology, is published as the inaugural issue of the Index and is available to download without a form at themcfarlandgroup.com. The Transferable Value Index is available at no cost at transferablevalueindex.com. It scores a business across two dimensions—how durably it is built and how independently it operates—and returns a personalized report placing the company in one of four categories. The McFarland Group plans to publish findings on a continuing basis as the response set expands.
The findings reflect 52 assessments submitted through July 9, 2026, with duplicate submissions counted once. Responses from The McFarland Group personnel were excluded. The Index scores twelve questions across two dimensions, Business Durability and Owner Independence, each on a five-point scale.
