Exit Planning

Succession Planning vs. Exit Planning

In the evolving field of Exit Planning for business owners, the terminology can often be confusing. Many assume that succession planning is synonymous with Exit Planning — but that’s not the case. Understanding the difference is key when speaking with clients and strategic partners.

Succession Planning is the process of identifying future leaders within a business and helping them grow into roles of leadership. It primarily focuses on transferring management and leadership from one generation to the next. Succession Planning ensures continuity within the business and is considered a component of a broader Exit Plan.

Exit Planning, on the other hand, is a comprehensive, strategic approach that evaluates all factors impacting the business owner — including business value, personal finances, employees, and family goals. It starts with the owner's personal and professional objectives and aligns available resources to build a roadmap for success.

Succession and Exit Planning are not mutually exclusive. In fact, they often go hand in hand. A well-executed succession plan fits neatly within a holistic Exit Plan.

Another consideration in your business is Contingency Planning. Read More about Contingency Planning. →