The next two areas to consider are:

3. Identifying and incentivising potential successors

Whether you are considering family members for succession, promoting internal staff members or seeking external management, you must develop a plan that works in your business’s best interests while keeping emotions in check. This encompasses not only identifying successors with appropriate skill sets, but also communicating these roles and responsibilities to all stakeholders and providing your selected successors with sufficient training to support continued business growth. Designing a compensation package to reward performance is also appropriate at this stage.

4. Selecting an appropriate structure for the succession

The structure you select for your business transfer will depend on the objectives you are trying to achieve. For instance, if you transfer control while retaining ownership, you may provide management, investors and other stakeholders with confidence that the organisation’s vision will remain on track