The succession planning process – an overview
In broad terms, the business succession process involves the following stages:
1. Determining whether business succession within the family is a viable alternative,
2. Developing your succession plan,
3. Monitoring the implementation of the plan, and making changes as necessary, and
4. Coordinating your succession plan with personal tax planning for retirement and the distribution of your estate.
Each of these steps is equally important. For example, excellent succession plans can be ineffective if they are not properly implemented and sophisticated estate plans can become ineffective if they are not coordinated with a business owner's plan for succession.
Though we’ve said it before, it can’t be stressed enough that succession planning is a process. The success of the process will depend on a number of factors, including: a desire to make it work, healthy family relationships, and trust, honesty and openness among family members. Though matters of family communication are beyond the scope of this bulletin, your advisor can suggest strategies for improving family communication and can offer advice regarding other professionals you might turn to for help conducting family meetings and setting up a family council.