Great to see an article that clearly demonstrates that whilst there are obvious links between the two, there are significant difference between succession and the ongoing management and leadership of the business (succession planning) and the exit of the individual to new ventures.
In the case of the family business leader it may be retirement and coming to terms with what to do next, financial security and achieving specific ambitions.
All too often the needs and aspirations of the departing leader are not satisfactorily addressed and there can be problems where they are unclear over their role and continue to meddle in the affairs of the business too.
Clearly, the needs of the individuals are important and need to be addressed, as does the future management and leadership of the business, possibly by the next generation.
In this post, we will clarify the subtle but vastly important differences between succession planning and Exit Planning. Clarifying the meanings behind these concepts will allow you and your clients to examine and successfully implement The Seven Step Exit Planning Process™ , which is critical to assure that your clients exit their businesses smoothly and successfully. Many advisors often mistake succession planning and Exit Planning as the same process under different names. This error can leave owners unequipped for the most important financial event of their lives: exiting their businesses.