| A. GOALS AND OBJECTIVES – Identify the need for a succession plan – Develop vision, goals and objectives – Establish personal retirement goals – Identify family/stakeholder goals – Establish a team of professional advisors | B. DECISION MAKING – Involve family members in the decision-making process – Establish a method for dispute resolution – Communicate wishes to family/stakeholders |
| C. SUCCESSOR(S) – Identify successor(s) – Ownership – Management – Identify required training for a successor(s) – Provide training to build a vision for the future of the business – Provide support to successors | D. ESTATE PLANNING – Address taxation implications to the owner/business upon sale or transfer of ownership – Develop an estate and personal financial plan for the owner, spouse and the succeeding generation – Detail retirement income needs – Provide for active and non-active family members |
| E. CONTINGENCY PLANNING – Identify potential problem areas – Develop “What If” scenarios – including action plans | F. CORPORATE STRUCTURE AND TRANSFER METHODS – Is the business to be transferred to family members or sold – Define roles and responsibilities for family members and key employees – Fill key management positions – Identify role(s) for retiring owner – Restructure the business, if required – Consult with professionals (lawyers, accountant, financiers) |
| G. BUSINESS VALUATION – Obtain professional input into determining a fair market value for the business – Determine what is to be sold – Consideration to profitability, business location, inventory level, financing of buyout | H. EXIT STRATEGY – Determine the method of transfer – Establish a timeline for the implementation of the succession plan – Publish the Plan, so that affected individuals are aware – Communicate regularly with all affected parties |
| I. IMPLEMENTATION/FOLLOWUP – Review the Plan regularly and update it as necessary | |
| (http://cfsask.ca/images/newsask/pdfs/Newsask_Business_Succession_Checklist.pdf) |
BUSINESS SUCCESSION PLANNING CHECKLIST
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