Caterham's owner handed the wheel to his son, who refounded the sports-car maker

Caterham Cars was built by Graham Nearn, who had carved out a niche making the Lotus Seven-based sports car in Kent. But by the early 2000s the core Caterham Super Seven was based on a 40-year-old design and competition was crowding in from all sides.

Graham, keen to retire, briefly toyed with selling. He rejected a trade-buyer offer of between 5 and 10 million pounds as too low, and considered an outsider too risky, so he handed the reins to his second son Simon, then 28.

Simon knew the business from childhood and had run a motorsports promotion firm, but had never planned to take over. He decided the only answer was to develop an entirely new car — a make-or-break move for a small company — spending three years on a high-tech rival to the Lotus Elise.

When that project collapsed with its design partner, Simon switched Caterham's focus to motorsport, creating track days and bespoke racing championships. Under his guidance the Caterham became the most raced sports car in the world, with 14 separate championships.

Caterham survived and its car became the most raced sports car in the world, with 14 owner championships, rather than being sold cheaply or wound down.

The father chose family succession over a lowball sale, betting on his son over an outsider.

Simon had run his own business and worked outside Caterham, giving him perspective the founder lacked.

When the new-car project failed he pivoted to motorsport, a business he understood.

The founder's decision to step back and stop dictating let the son find his own strategy.

A successor who knows the business but is not defined by the old product can re-imagine the company; the founder has to genuinely let go for it to work.

The Caterham grew into a full motorsport and road-car business, run by the Nearn family. Graham remained chairman but limited himself to quarterly board meetings, and later died in 2009. The company's survival is attributed to the succession and the son's willingness to change direction.