Planning for Your Succession: Are You Ready?

McCarthy, Ed
October 1996
Journal of Financial Planning;Oct96, Vol. 9 Issue 5, p52
Academic Journal
The article discusses business and financial aspects of succession planning among people. As the first generation of planners move into their fifties and sixties and the typical business mix shifts toward asset management, the need for succession and transfer planning begins to take on a new urgency. As business owners, planners must anticipate both planned and unplanned departures from their firms. The process is largely the same in either case. For many planners, the degree of concern with succession planning is a function of age. Findings suggests that many planners under age 50, particularly sole practitioners, are not overly concerned with the succession/transfer issue. Until recently, this lack of concern had an economic basis, because the traditional one-planner practice had little value to anyone except the planner. Because a planning practice is valued on its future revenues, the uncertainty in those revenues is a major concern for the prospective buyer. If someone is considering selling his/her business, any measures that can reduce this uncertainty will increase the practice's value.


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