Business Succession Planning

See "Buy/Sell Agreements" and "Key Person Life Insurance" menu options above.

Finding or developing a suitable successor to assume leadership of a business when the current chief executive or owner is planning to exit the firm, sell, retire, or as the result of an unexpected event such as an adverse health condition, disability, or death.

Successor Prerequisites

Industry Experience

In a closely held or family business, some require that the family member work for a competitor before being hired by their own company. How many years have they worked in the industry? What is their track record?

Leadership Roles

How does the potential successor perform in a leadership position? Have they been tested when under pressure, making major decisions, wielding authority, managing finances, dealing with employees, being competitive in their marketplace, attracting and maintaining clients? Do they have good problem solving skills? Are they creative?

Education/Credentials

Do their education or certifications qualify them for the position? Did they attend an institution or program that is known for it's suitability and preparation for this industry? How did they perform?

Peer Review

Do they have a good reputation in the industry? What is the impression of the other key employees or owners? Do they have a good credit rating? Any bankruptcies, lawsuits, criminal records?

Corporate Culture/Values

Does the prospective leader's values and goals align with the company. Will they mesh with the corporate culture? Will they be an influence for positive culture change?

References

Do they have reputable mentors or references in the industry, peers, educational institutions, outside the industry? Are prior employers or managers satisfied with their performance?