Planning topic
Business Succession Planning
Succession planning is deciding, ahead of time, who will own and run the business when you step back, and how that handoff will happen.
Some owners plan to pass the business to family, some to partners or key employees, and some to sell to an outside buyer. Each path raises different questions about timing, value, taxes, and the people who depend on the business. Starting early leaves more choices open.
What owners usually work through
- Who takes over: family, partners, key employees, or an outside buyer
- When the handoff happens, and whether it happens in stages
- What the business is worth, and how that value is measured
- How the owner’s own retirement fits with the sale or transfer
- What happens if the plan has to start sooner than expected
Common questions
When should an owner start thinking about succession?
Well before a planned exit. A transfer to family or employees can take years to prepare, and an unplanned event such as an illness can force the question early. Owners who start sooner usually have more options to choose from.
How is succession planning different from a buy-sell agreement?
A buy-sell agreement covers specific events among co-owners. Succession planning is the bigger picture: who leads next, how ownership moves, how the owner is paid, and how the business keeps running. A buy-sell agreement is often one piece of a succession plan.
Who should be involved in a succession plan?
Usually the owners, their CPA, an attorney who handles business and estate matters, and sometimes a business valuation professional. Trino helps owners organize the questions and see how the planning pieces fit together.
What if the next owner cannot buy the business outright?
That is common, especially with family members and employees. Owners look at options such as selling in stages, seller financing, or funding arranged in advance. The right approach depends on the business and should be reviewed with your CPA and attorney.
Business Succession Planning near you
Trino talks with business owners across the Houston area. Each page below covers the same questions for owners in that community.
General education, not advice — talk with Trino and your own CPA or attorney before making a decision. Nothing is sold on this site.