The process of transferring ownership and management of a sole proprietorship from one owner to another.
Business Continuity Planning: A set of procedures and protocols designed to ensure the continuation of business operations in the event of a disruption, such as the sudden death or disability of the owner.
Exit Strategies: The various methods available for an owner to exit a business, including selling the company or passing it down to family members.
Estate Planning: The process of preparing for the transfer of a person's assets after their death, including the distribution of business assets to heirs or beneficiaries.
Key Employee Planning: Identifying and preparing key employees to take on leadership roles in the business if the owner or other key employee is no longer able to manage the company.
Ownership Transition: The process of transferring ownership of the business from the current owner to a successor or group of successors.
Business Valuation: Determining the value of a business, which is important for estate planning and evaluating potential sale or transfer of ownership options.
Succession Planning Committee: A group of individuals responsible for overseeing and guiding the succession planning process within a company.
Business Structure Analysis: Evaluating the current business structure to ensure that it is well-suited for succession planning and other long-term goals.
Trusts and Wills: Documenting the transfer of business assets to heirs or beneficiaries through various legal mechanisms, such as wills, trusts, and buy-sell agreements.
Financial Planning: Developing long-term financial projections and exploring investment strategies to ensure the financial stability and growth of the business.
Internal succession planning: This method involves identifying and developing current employees within the company who have potential to take over leadership roles when the current owner retires or steps down.
Family succession planning: This type involves grooming family members (usually children or close relatives) to take over the business when the current owner retires or steps down.
External succession planning: This method involves selling the business to an outside party, such as another company or individual.
Employee buyout succession planning: This type involves transferring ownership of the business to employees through an employee stock ownership plan (ESOP) or other similar programs.
Merger or acquisition succession planning: This method involves merging the business with another similar business or selling the business to a larger company to help ensure continuity and preserve the company's legacy.
Liquidation succession planning: This method involves selling off the assets of the business and winding down operations, which is usually a last resort when no other options are available.