Definition
Founder dependency, also called founder dependence, is a form of owner dependency in which economic performance requires the founder’s personal contribution. It may affect sales, renewals, delivery, pricing, management, or rights and qualifications. A strong founder can create value and still leave a transferability gap. Assess each material workflow or relationship rather than assigning one dependency label to the whole business.
What it means for you
Demonstrate what survives your departure and what requires a successor, paid replacement, transition participation, or a transfer condition. Documentation helps, but observed execution through the relevant operating cycle is stronger evidence.
The buyer’s lens
Can this buyer reproduce the cash-generating work under the transition plan actually available? Bridge recurring costs and contribution at risk into earnings, keep one-time transition cash separate, and give critical gaps a decision consequence.