Business Succession Plan
Business Succession Planning provides business continuity or existing solutions for business owners. A tailor-made solution will be formulated after a detailed discussion and understanding of the objectives of the business succession planning.
4 Steps to form a Business Succession Plan
Succession planning involves future planning of transitions and changes in key positions and senior leadership within an organization.
Yes, a strong succession plan can future-proof your company, but designing and implementing it is a professional’s job!
We follow a three-step approach to create a customized succession plan for your business:
Step 1: Identify Objectives
Step 2: Business Valuation
Step 3: Buy-Sell Funding
Consult for Business Succession Plan
Frequently Asked Questions
Why is business succession planning important?
A succession plan makes sure that the key leadership positions in an organization do not remain vacant after the exit of the current leaders. In effect, it ensures that the business continues to run smoothly, irrespective of the management or shareholding changes that take place with time.
What are the key elements of business succession planning?
There are three crucial elements involved:
– Shareholding control
– Cashflow coverage
– Asset management
Should I follow a succession planning checklist?
Yes. It is vital to have a succession planning checklist. At Cheng & Co, we can create a customized one for you. However, the key elements are:
– Identify stakeholder objectives.
– Understand the family objectives (whether the business is intended to stay in the family or be sold).
– Identify potential issues.
– Create a list of roles that may need succession planning.
– Develop leadership profiles.
– Plan on timelines.
– Take feedback from key employees and family members.
– Establish a conflict resolution plan.
– Have a career path for the successors.
– Develop alternate scenario plans.
– Settlement plan for the equity of the previous owner.
Why is succession planning vital for small businesses?
Most small businesses are owned and managed by a family. These situations may invite complications as current owners may be reluctant to decide how to manage future controls within the company. A succession plan helps ensure that your business processes stay buoyant in the future.