Business Succession Planning Mistakes

58% of small businesses have no succession plan. Here’s how to avoid disaster.

The 7 Deadly Mistakes

1. No Succession Plan at All

58% of businesses have none. 70% never make it to second generation.

2. The Handshake Deal

Verbal agreements don’t hold up. Create formal buy-sell.

3. Unfunded Buy-Sell

Agreement on paper, no money to execute. Fund with life insurance.

4. Outdated Valuation

Business tripled, agreement still uses old numbers. Update annually.

5. No Key Person Continuity

Business depends on you. Who replaces you?

6. Ignoring Disability

Death isn’t only exit. Plan for disability too.

7. Not Considering Family Dynamics

Family businesses have unique challenges.

Succession Options

• Family succession
• Management buyout
• External sale
• ESOP
• Hybrid

Conclusion

Start planning now. Your business—and family—will thank you.

Disclaimer: Consult professionals.