A 5-Year Succession Planning Timeline
The SBA recommends beginning succession planning at least 5 years before the intended transition.
Year 1: Assessment & Foundation
Identify potential successors. Conduct business valuation. Review entity structure. Establish buy-sell agreement framework.
Year 2: Strategy Development
Select transfer method (sale, gift, installment). Engage tax advisors. Begin successor development and knowledge transfer.
Year 3: Documentation
Draft and execute transfer documents. Update operating agreements. Restructure entity if needed via multi-entity strategy.
Year 4: Transition
Begin phased ownership transfer. Transition client relationships. Shift management authority gradually.
Year 5: Completion
Complete ownership transfer. Finalize governance updates. Establish ongoing advisory relationship if desired.
For agricultural operations, see FGC for Agriculture. For ongoing oversight, explore Fractional General Counsel.
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Lee Clark
Licensed ID & CA. Arbitrator, Judge Pro Tem, mediator since 2008.
Conor Meyers
CEO/GC of ACE Building Envelope Design. CLO of ZEA Biosciences.