02: The importance of succession planning

Having a succession plan in place is essential to allow for an orderly transition and to ensure that the value within your business is retained. It also provides you with more time to find the right successor or buyer and to assess market conditions.

Additionally, a plan can prevent a leadership crisis in the event of a business owner becoming disabled, seriously ill or dying.

A succession plan should address:

• Future ownership and management.
• Financing the succession.
• Retirement plans (if this is the reason for exit).