Business Succession Planning Checklist |
||
| The entrepreneur | Yes | No |
| The entrepreneur is aged 50 years or less | ||
| The entrepreneur is in good health | ||
| The business could continue without the entrepreneur’s contribution | ||
| The ownership of the company | ||
| The entrepreneur has prepared his will | ||
| The entrepreneur has signed a Power of Attorney | ||
| A buy/sell agreement has been signed | ||
| The entrepreneur has defined the methods for dividing the ownership of the company and his estate between heirs | ||
| Tax Planning | ||
| The entrepreneur has compiled an estate summary report | ||
| The entrepreneur has taken the appropriate tax exemptions | ||
| the entrepreneur knows what taxes will have to be paid at the time of his or her death | ||
| The entrepreneur has purchased the necessary life insurance | ||
| The role of the heirs | ||
| The entrepreneur delegates major responsibilities to the heirs working for the business | ||
| Each heir employed in the business has the required competence | ||
| Each heir occupies a definite position, and the senior managers accept this role | ||
| Each heir employed in the business does what is expected of him or her and does not benefit from any special privileges | ||
| The business’ interests come fore the personal well-being of the heirs | ||
| The successor and the succession | ||
| The entrepreneur has identified the successor | ||
| The successor knows what is expected of him or her | ||
| The successor has the respect and the support of the other heirs | ||
| The successor has been a senior manager in the business | ||
| The successor understands the business sector and has received management training | ||
| The successor is known to be competent by lenders, suppliers and clients | ||
| The entrepreneur has provided for an alternative succession plan if the chosen successor declines | ||
| Senior Managers | ||
| Senior managers accept that company ownership remains in the family | ||
| The successor has the respect and support of senior managers | ||
| Senior managers are treated fairly | ||
| The company knows how to keep its senior managers | ||
| The entrepreneur has purchased "key-person" insurance | ||
| Senior managers participate in profit sharing | ||
| Support | ||
| The entrepreneur has created a board of directors or an advisory board | ||
| The board of directors or the advisory board meets regularly and honestly assists with the management of the company | ||
| The board of directors or the advisory board revises and approves the company’s growth plan | ||
| The successor is recognized as competent by the members of the board of directors or the advisory board | ||