SUCCESSION PLANNING

"AMFI registered Financial Distributor"

Client Login  Invest Online 30 Minute Free Consultation

Page Title

Home / SUCCESSION PLANNING

Succession Planning

Succession planning is a strategy for passing on leadership roles—often the ownership of a company—to an employee or group of employees. Also known as "replacement planning," it ensures that businesses continue to run smoothly after a company's most important people move on to new opportunities, retire, or pass away.

Succession planning can also provide a liquidity event enabling the transfer of ownership in a going concern to rising employees.

Link Name

How Succession Planning Works

Succession planning evaluates each leader’s skills, identifying potential replacements both within and outside the company and, in the case of internal replacements, training those employees so that they’re prepared to take over. Succession planning is not a one-time event; succession plans should be reevaluated and potentially updated each year or as changes in the company dictate.

In addition, businesses might want to create both an emergency succession plan, in the event a key leader needs to be replaced unexpectedly, and a long-term succession plan, for anticipated changes in leadership.


Key Takeaways

  • Succession planning is a strategy for passing on leadership roles—often the ownership of a company—to an employee or group of employees.
  • Succession planning ensures that businesses continue to run smoothly after a company's most important employees retire and leave the company.
  • Succession planning involves cross-training employees so that they develop skills, company knowledge, and a holistic understanding of the company.