We can't find the internet
Attempting to reconnect
Something went wrong!
Attempting to reconnect
Your exit, your terms.
For most business owners, their business is their largest asset. Yet many have no plan for what happens when they want to step away.
5-10 years before exit is ideal
Optimize for sale or transition
Sale, transition, or wind-down
On your terms, not forced
Why succession planning matters
Succession planning isn't just about retirement. It covers any scenario where you need to exit the business.
Maximize Value
A business with a clear succession path is worth more than one dependent on its owner.
Protect Family
If something happens to you, a plan ensures your family isn't left scrambling.
Retain Key People
Key employees stay when they see a future. Uncertainty drives talent away.
Exit on Your Terms
Planning gives you options. Without it, you take what you can get when you need to leave.
Common succession paths
Each path has advantages and considerations. The right choice depends on your circumstances.
Sell to an Outside Buyer
- + Full cash exit possible
- + Clean break from business
- + Market determines value
- - Finding buyer takes time
- - Due diligence intensive
- - Relationships may change
Family Succession
- + Business stays in family
- + Gradual transition possible
- + Legacy preserved
- - Family dynamics complex
- - Not all may be capable
- - Fairness to other children
Employee/Management Buyout
- + Buyers know the business
- + Continuity for customers
- + Motivated successors
- - Employees may lack capital
- - Financing can be complex
- - May require earn-out
Gradual Wind-Down
- + Simple to execute
- + No buyer needed
- + Flexibility on timing
- - May not maximize value
- - Commitments need managing
- - Staff implications
Key elements of a succession plan
A comprehensive succession plan addresses these core elements. Each requires time and careful consideration.
Business Valuation
Understanding what your business is worth gives you a baseline for negotiations and financial planning.
Documentation Review
Shareholders agreements, employment contracts, leases, and key contracts all affect succession options.
Identifying Successors
Whether family, employees, or external buyers, identifying and developing potential successors takes time.
Tax Planning
The structure of a sale or transfer can significantly affect your net outcome. Plan early.
Timeline
Most business sales take 1-3 years from start to completion. Build in buffer for the unexpected.
When to Start Planning
The best time to start succession planning is years before you need it. Five to ten years is ideal for a significant business.
Time to develop successors, optimize for sale, address structural issues.
Focused effort required. Some options may be limited.
Options limited. May need to accept less than optimal outcomes.
Don't wait for a trigger
Health issues, burnout, or attractive offers often force decisions. By then, options are limited. Planning in advance gives you control.
Key Takeaways
Your business is likely your largest asset - plan for its transition
Succession planning covers sale, family transfer, or wind-down
Start planning 5-10 years before you want to exit
Get your documentation in order - it affects your options
Tax planning early can significantly affect your outcome
Related Reading
Asset Sale vs Share Sale: Understanding the Difference
Should you buy the company's assets or its shares? We explain what transfers under each scenario and why it matters.
Partnerships: When They Work and When They Don't
Should you form a partnership or choose another structure? We explain how partnerships work and when a company might be better.