Succession Readiness Report: Objectives
Succession Readiness Report: Objectives
While over 80 percent of business owners have considered what they want from the transition, fewer than 10 percent have set clear objectives.
These objectives are important for a successful succession plan — keep reading to find out why.
Have you clearly defined your objectives for the transition?
Here’s the good news: more than four in five respondents have thought about and have rough answers to big issues like timeline, terms, price, and buyer.
The bad news: they haven’t translated those thoughts into clear objectives.
Fewer than one in 10 have clearly defined objectives for the transition of ownership in the near and long term.
Clearly defined objectives are the foundation of any successful succession plan. They offer direction, set expectations, and help align your key players toward a common goal. Without these objectives, you risk making decisions that are not in the best interest of your business or your future.
Objectives are individual to every business and every business owner — it’s not a one-size-fits-all approach. You may be focused on continuing the family legacy by transitioning the business to the next generation.
There’s no right or wrong objective but you won’t get far in your succession planning without an end in mind.
Additionally, in today’s landscape, more people are retiring and selling their businesses. As sellers outgrow the number of buyers, acting strategically now will prepare your business to transition at the top of the market.
Digging into the data
“Clear objectives are the foundation of an effective transition plan. Many business owners have ideas, but without concrete objectives, your future is at risk. Our advisors are here to help you turn those ideas into a clear, actionable plan. Together we can make sure your business thrives in its next chapter.”
– Kerry Smith, National Leader, Family Office Services
Ask yourself:
- What do you want the transition to look like? Is everyone on board?
- What price do you have in mind? Will it meet your retirement goals?
- What would a lower price mean for your plans?
- What are your non-negotiables for the transition?
- Are you prepared for potential market shifts?
We suggest:
- Take time to reflect on your personal and business goals
- Determine what you’d like your transition to look like
- Discuss your vision with key collaborators, family members, and/or advisors
- Document your objectives and revisit them regularly to ensure relevancy
