Developing a list of questions to consider, as part of a succession plan review, will assist in the determination of a succession planning strategy for a business.
The key questions to be answered could include:
- What do you want to achieve from the business?
- Are you building the business for a lifetime of activity for yourself or for an exit in the near future?
- Have you identified your fears relative to succession planning?
- Have you thought about options for the existing business?
- Could a partner buy you out?
- Could you introduce a new partner into the business and then exit?
- Could you hand the business on to a family member?
- Could you appoint an external CEO/General Manager to run the business on behalf of the family, especially if you want to “skip a generation” and retain the business within the family?
- Do you think the business is “exit ready” or “succession ready” at this stage?
- What are the greatest concerns you have for the operation of the business?
- Can the business survive with less reliance on “you”?
These are some of the questions you should be considering in detail, in planning a succession strategy for the owner or senior manager of a business.
If you would like to have a discussion relative to the development of a succession plan, please don’t hesitate to contact the accountant our office.