Glossary

Business succession planning facilitates the transfer of ownership and control of a business from one owner or group to another. 

At its core, business succession planning aims to ensure the continuity of the business while minimizing disruption to operations. 

A business succession plan typically includes the following elements:

1. Identifying critical personnel — Acknowledging the essential individuals to the business' success and determining their roles in the succession plan.

2. Outlining business objectives — Establishing the goals and objectives of the business, including financial goals, long-term growth plans, and any other objectives that may impact the succession plan.

3. Preparing an executive plan — Generating a plan for transferring management responsibilities, including naming potential successors and providing them with the necessary training and support to take over the business.

4. Producing a transfer plan — Forming a plan for the transfer of ownership, including determining the value of the business, structuring the transfer, and addressing any tax implications.

5. Classifying potential risks and contingencies — Pinpointing any potential risks and contingencies that may impact the succession plan, such as the death or disability of key personnel or changes in market conditions.

6. Reviewing and revising the plan —Regularly appraising and renewing the succession plan to ensure it remains relevant and effective in achieving the business' objectives.