I have been involved in the solar industry for more than 40 years. During that time, I founded several companies, developed solar projects for organizations including NASA, the Pentagon and commercial clients throughout the Mid-Atlantic region, and spent more than three decades building Aurora Energy.
Like many founders, I spent most of my career focused on customers, employees, projects and growth. I did not spend enough time thinking about succession planning.
In 2025, I completed the sale of 81% of Aurora Energy to members of my management team through an SBA-financed management buyout. It was one of the most rewarding accomplishments of my career — not because of the financial transaction, but because I was able to see employees whom I had mentored for many years become owners of the company they helped build.
Today, I believe more business owners should consider this path. Unfortunately, many do not know where to start. That is one of the reasons I founded Aurora Business Group.
But before the successful transition, I experienced a failed one.
My first ownership transition failed
Several years ago, I believed I had trained the right successors for my company. Two key employees had worked alongside me for many years. One had spent nearly a decade helping grow the business, and the other had developed into a skilled project manager.
An Aurora Energy’s installation at United Therapeutics. Photo courtesy Ewing Cole
Then something unexpected happened. I suffered an accident and fell from a roof. For several months I was largely out of commission and unable to participate in the daily operation of the business. To keep the company moving forward, I promoted both individuals into executive leadership positions.
They performed well. Projects continued. Customers were served. The company remained stable. Watching them succeed convinced me they were ready to become owners.
I was wrong. The experience taught me that running a company and owning a company are not the same thing.
They were capable contributors, but they were not yet prepared for the financial responsibility, personal risk and long-term commitment that ownership requires. From their perspective, they felt they were already doing much of the work necessary to run the business. Instead of investing their own money to purchase ownership, they believed they could start a company of their own.
The transition effort failed. At the time, it was disappointing. Looking back, it became one of the most valuable lessons of my career. I realized that future owners need much more than technical knowledge and operation skills. They must understand financial statements, cash flow, banking relationships, strategic planning, governance, networking and leadership. Most importantly, they must think like owners.
That failure completely changed my approach to succession planning.
Preparing for the next generation of owners
Instead of focusing on transferring shares, I started focusing on developing future owners.
Over the following years, I became much more intentional about mentoring leaders and involving them in executive decisions. I shared financial information, discussed business strategy, explained lender requirements and helped them understand how ownership decisions affect employees, customers, vendors and long-term growth.
The goal was no longer to find people who could run projects. The goal was to develop people who could eventually own and lead the business.
Years later, that investment paid off. In 2025, Aurora Energy successfully completed an SBA-financed management buyout. This time the management team was ready. The company was ready. The lenders were comfortable. The transaction succeeded.
The opportunity many founders overlook
Many business owners assume their only exit options are selling to a competitor, private equity group or strategic buyer. Those options certainly have their place, but many founders would prefer to see their employees become owners. They want to preserve the company culture, reward loyal team members and protect the legacy they spent decades building.
The challenge is that most employees do not have the capital necessary to purchase a business. This is where SBA financing can play an important role.
In our case, SBA financing helped transform qualified managers into business owners; however, financing alone is not enough. The company must be prepared. The management team must be prepared. The financial records, governance structure, leadership team and succession plan must all be in place before lenders become comfortable supporting the transaction.
The best time to prepare for an ownership transition is not when the founder is ready to retire. It is several years earlier.
Why I founded Aurora Business Group
After the sale of Aurora Energy, many business owners started asking me the same questions: How did you prepare your management team? How did you obtain financing? How did you know they were ready? What would you do differently?
I realized that many founders face the same challenges I faced years earlier.
They have capable employees. They want to preserve their legacy. They want to reward the people who helped build the business. But they do not know how to structure the transition.
That is why I founded Aurora Business Group. My goal is to help business owners prepare themselves, their companies and their future leaders for successful ownership transitions. I want founders to learn from my experience rather than from costly mistakes of their own.
I believe there are thousands of successful businesses across America that could remain independent if founders and employees had better access to practical guidance and SBA financing resources.
Final thoughts
Looking back, selling Aurora Energy to my management team was not a single transaction. It was a process that took years of preparation, leadership development and learning from failure.
The financing was important. The valuation was important. The legal documents were important. But the most important part was developing leaders who were ready to become owners.
Many founders are sitting across the table from their future successors every day. They simply do not recognize it yet.
A great business deserves a great successor. I believe more founders should have the opportunity to pass their companies to the next generation of leaders, and more employees should have the opportunity to become owners.
That belief guided my transition at Aurora Energy, and today it guides the work we do at Aurora Business Group.
Fariborz Mahjouri is the former CEO of Aurora Energy, a commercial solar installer in the Mid-Atlantic region, serving customers in Maryland, Virginia and the District of Columbia. He is now the founder of Aurora Business Group.