Small business succession planning involves the process of making plans in order to ensure the small business can easily be transferred to new owners, without operations being interrupted.
An ownership interest in partnerships, sole proprietorships, LLCs, and even closely held corporations cannot transfer to new owners as easily as a publicly traded corporation can transfer to new owners. If the owner is involved in day-to-day operations, the transfer becomes even more complicated because new owners must take over immediately.
Plans must be made to ensure that this can happen, whether death, disability or simply retirement occurs.