Check out this insightful installment of F12’s M&A Video Series: Succession Planning.
Succession planning is a key factor when it comes to selling your business. It’s about developing a plan for your company to continue on after you’re gone. That may be retiring, moving on to a new opportunity, or if you pass away.
So how do you create your succession plan? You do it in two steps: the personal side and the business side.
First, decide on the lifestyle you want. This is the personal side. Michael Contento, F12’s Managing Partner and Business Innovation Executive, knew his dream was to run a vineyard with his wife in Italy. So he made this his personal goal.
Bring in a financial planner to assess your situation and determine:
- What you’ll need when you retire (or move on to running a vineyard)
- How many years you need to achieve that number
Next, focus on the business side. You’ve got your personal why—let’s say you landed on early retirement. What does that mean for your company after you’ve bowed out? Michael knew he wanted stability and opportunity for his loyal and dedicated team.
You need to discover what you want your company to look like after selling your business. That’s your business why. Combine the two steps—the personal and the business—and you have what you need to create your succession plan.
So… what does your succession plan look like?