Business Succession
Planned ownership transitions where the current owner transfers the business to a successor over time. Designed for owners thinking about exit.
In plain words
Succession planning, also called ownership transition planning, is the owner's plan for who takes over the business and how. Starting early, often several years ahead, gives the best price and the smoothest handover.
Step by step
- 1
Decide what you want
Retire fully, step back slowly, or stay on part-time. Your goal shapes everything else.
- 2
Choose the next owner
A family member, key employees (a management buyout or an ESOP), a partner, or an outside buyer.
- 3
Know what it is worth
Get a business valuation so the price is realistic.
- 4
Plan how it is paid
Often a mix: an SBA loan for the buyer plus seller financing from you.
- 5
Get the business ready
Clean books, written processes, and key people who will stay. Buyers pay more for a business that runs without the owner.
- 6
Hand it over
Agree a transition period and introduce the new owner to customers, staff, and suppliers.
In more detail
Succession planning is the deliberate, phased transition of a business from the current owner to a chosen successor — often a family member, key employee, or trusted operator. It protects employees, customers, and the legacy the owner has built.
- Best started 3–10 years before the owner steps back
- Internal successors (family, employees) vs. external successors
- Often blends seller financing, earn-in, and mentorship
- Tax planning matters — installment sales, ESOPs, gifts
- Customer and employee communication plans are critical
A complete walkthrough with structure, examples, FAQs, and what to watch for.
Open the full guideCommon questions
When should I start succession planning?
Ideally several years before you want to leave. It gives time to prepare the business and find the right successor.
Can I sell to my employees?
Yes. Key employees can buy the business, often with an SBA loan and seller financing, or through an Employee Stock Ownership Plan (ESOP).
Do I have to leave right after the sale?
No. Most sales include a transition period, and some owners stay on longer as advisors.
Find help near you
BPM does not accept or store any paperwork. After your first phone call, buyer and seller exchange email addresses and share documents directly.
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