Do I need a succession plan?

Q: Do I need a succession plan?

It depends on what you’re trying to do: Estate Planning is about passing your assets along to other people or organizations. Succession Planning is about ensuring the business remains operational once you are gone and involves your attorney, accountant, financial planner, and operations team. PriceWaterhouseCoopers did a study of 1,600 family-run businesses and found the following: 36% of these businesses survived passage into the 2nd generation; 19% survived into the 3rd generation; 7% continued into the 4th generation. If you want to make sure your business survives and retains its value, then succession planning is something you should take a serious look at.

Question

amber · Accepted Answer

It depends on what you’re trying to do:

Estate Planning is about passing your assets along to other people or organizations.
Succession Planning is about ensuring the business remains operational once you are gone and involves your attorney, accountant, financial planner, and operations team.

PriceWaterhouseCoopers did a study of 1,600 family-run businesses and found the following:

36% of these businesses survived passage into the 2nd generation;
19% survived into the 3rd generation;
7% continued into the 4th generation.

If you want to make sure your business survives and retains its value, then succession planning is something you should take a serious look at.