If you have spent many years developing and growing your business, selling it on the open market may not appeal to you as much as passing it on to someone you know and trust has the skills to successfully continue the business. This process is called succession, and a succession plan is the strategy you use to make it happen.
Planning succession well in advance helps you to prepare and train potential successors for an important role within your business. It should form a part of your overall business plan. Succession planning is particularly beneficial if the business owner dies suddenly or becomes ill, as the business can continue.
Whether you want to pass your business on to someone in your family, or sell to a partner or trusted employee, having a formal succession plan will:
- help maximise the return on your investment
- ensure a smooth transfer of ownership and control
- minimise disruption to business operations.
This guide explains the different types of succession, and how to develop a plan to make succession as simple and efficient as possible.