When you choose a successor as part of your exit strategy, you’re entrusting your business to someone who shares your mission and values by selling it internally – whether you’re passing it down to a relative or a valuable employee or manager.
A change in leadership and ownership by an outside buyer can significantly affect daily operations, customer relations, company culture, and more. The advantage of succession is the opportunity to maintain the structure, positions, and relationships with customers, vendors, and suppliers.
Succession Planning
Succession planning is a gradual strategy to pass on your business to a chosen successor to fulfill your personal and professional wishes while optimizing it for sustainable success. Generally, the successor is a family member, a loyal employee, or a capable manager.
What Is a Business Exit Strategy?
An exit strategy leaves your business in efficient valuation and operational standing, so you receive the maximum cash and financial return upon leaving your business. You also have control over the future of your business with an exit plan.
Succession Planning in an Exit Strategy
Succession is a gradual exit strategy, so you maintain presence and influence in your business until the successor develops effective leadership or finishes the purchase. You choose the payment plan leading to the transfer of ownership. Succession is an effective exit strategy to maintain your mission, values, and service to your client base for years.
Overview of the Succession Planning Process
- We identify the best succession strategy for your business that aligns with your personal preferences and professional goals.
- Financial preparedness: I use an assessment to determine the revenue needed to fund the succession and an optimal path forward to obtaining those funds.
- Operations and process management: we strategize optimizing daily operations and improve processes for ease of ownership transition.
- Employee/successor development: your co-owner, family successor, or employee undergoes training to assume leadership by managing responsibilities with minimal supervision to ease into their new leadership position.
Walkthrough of Building a Solid Strategy
A succession plan is ongoing and will include the following elements:
- I will conduct a personal and business assessment to determine your values, goals, and vision for your and your company’s future: this will help us narrow down the right succession strategy to fulfill your wishes and stipulations.
- We identify your chosen successor and create a list of potential successors in order of preference – this is important if your chosen successor cannot fulfill the role.
- Create a strategic plan for better efficiency and a performance plan for leadership development.
- Financial information: to determine how to fund the succession process, we will identify and allocate assets, cash flow, and more.
Business owners who want a professionally-developed succession and business exit plan that guarantees capable ownership can book with me today. I look forward to building your confidence in the future of your business with a solid plan.
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Succession planning in a business exit has several advantages: internally transferring ownership of your business reduces drastic changes in operations. Choosing a successor is also less likely to cause customers and staff to doubt the company’s future. Learn more today about succession in an exit strategy in my latest article.
