7 critical investor-ready questions for business succession

Relevant For:

Business owners and entrepreneurs planning for succession and long-term business value.

Key Points:

• Start succession planning early for better outcomes.
• Ensure business has systematised procedures, clear customer profiles, and set goals.
• Key questions to address include business independence from the owner, performance metrics, and improvement steps.
• Succession plan should align with personal goals and retirement plans.
• Proper planning can significantly enhance business value and sale success.

Full Article:

Many business owners make the mistake of delaying their succession planning until they are ready to retire. In reality, a robust succession plan should begin much earlier, ideally at the start or during the growth phase of the business. A business with a clear, structured strategy from the outset is more likely to succeed and hold long-term value.

Key elements of a good business include:

• Systematised and documented procedures.
• A clear customer profile matched with appropriate service levels.
• Established goals and objectives.

With these fundamentals in place, a succession plan can be crafted to facilitate a smooth transition when the owner decides to sell. This not only makes the business more attractive to potential buyers, but also maximises its value.

To ensure a business is "investor ready," owners should address several critical questions: