BUSINESS BEST PRACTICES: Succession Planning: Intentional and Systematic Preparation for the Future

Succession planning is an intentional and systematic way to prepare for the future. While most people think of it as trying to answer the question "Who will take over the business?", succession planning actually entails much more than just the transition of ownership. Businesses also must prepare to develop and replace key employees and staff, and they should anticipate and plan for the impacts that any transition in ownership and/or personnel could have on clients, advisors, employees, and other stakeholders. When adequate succession planning occurs at all levels, businesses are able to experience a smooth, well-orchestrated transition; owners or beneficiaries can avoid the dreaded "fire sale" that can occur with inadequate planning. This article provides insight into the succession planning process and focuses on ownership transition issues. [PUBLICATION ABSTRACT]