What are the 5 D's of succession planning?

The 5 Ds of succession planning are Death, Disability, Divorce, Disagreement, and Distress, representing common life-altering events that can disrupt a business, necessitating proactive planning for continuity, leadership transition, and asset protection to ensure the company's survival and smooth operation despite unexpected challenges.  

What is the most common mistake in succession planning?

The most common estate and succession planning mistake is failing to plan at all. It's an easy topic to avoid, after all, who wants to think about death or disability? But failing to plan limits your options and leaves your family without guidance.

Other common mistakes include:

Planning only for succession emergencies.

Failing to secure buy-in on your succession plan from senior stakeholders and the board.

Neglecting your High-Potential (HiPo) pool.

Deploying one-size-fits-all development programs for successors.

Not having a set timeline or clear criteria for success.

Where do I start with succession planning?

Key aspects to have in a business succession plan:

Identify priority roles.

Define what is needed for each role.

Find possible succession candidates for each role.

Discuss career aspirations with your candidates.

Set an action plan for developing future candidates.

Estimate when transitions may occur.

How long does it take to create a succession plan?

Every company's timeline is individual. But it often takes 12 months or more to build out a leadership succession plan and depending on business needs it could take more than two or even three years. That's why often, by the time the business owner feels ready, he or she may already have fallen behind.

Do you assist with putting a business succession and emergency plan in place?

Yes we do. 

Do you assist with Buy/Sell Agreements and Funding?

Yes.  Us and our strategic partners can provide you with buy/sell agreement specimens for your review and assist with effective and economical funding options.