Succession Planning

Succession Planning: Create a plan for what's next for your firm

You may have spent years building a business, and a well-thought-out plan can help you successfully monetize it when you decide to exit. Of course, it goes without saying that a plan may also protect the long-term value of the firm by helping to minimize any disruptions to clients, employees, and the overall operations as a transition takes place.

What does your future look like?

You'll want to help create a life that's best for you, your clients, and your firm when you transition your business. As you think about succession, start by envisioning what you want your future to look like, and consider one of three possible paths:

Merge or sell the firm to a third party, while remaining actively involved

Sell to a third party and gracefully exit

Transition it to internal successors

Each path takes time to understand all the issues, value the business, and create and implement a plan.

Consider the following steps to get started crafting your plan:

1
Access the Fidelity Succession Evaluator^® to help determine which path you may want to pursue.

Access the Fidelity Succession Evaluator^® to help determine which path you may want to pursue.
2
Evaluate if you have internal candidates on board, if that's your preference, and assess their leadership skills, management acumen, and potential to grow the business.

Evaluate if you have internal candidates on board, if that's your preference, and assess their leadership skills, management acumen, and potential to grow the business.
3
Understand what may drive your firm's value — such as size, revenue growth, talent, and client demographics.
4
Consider possible financing options, such as cash paid at closing, seller-financed notes, deferred payments, or equity.
5
Find specialists to help you develop your succession plan and address important issues, such as the transfer of ownership, leadership, and control.

Find specialists to help you develop your succession plan and address important issues, such as the transfer of ownership, leadership, and control.

Strategy