Business valuation and succession planning are closely intertwined because valuation plays a crucial role in the process of planning and transitioning a business from one generation to the next. Succession planning refers to the strategic process of preparing and organizing the transfer of power and responsibility from the current owner of the business to the future owner or management team. In the context of succession planning, business valuation aims to determine the company’s value, which is essential for establishing a fair price or stake for the transferring and future owner or successor. Business valuation plays a crucial role in determining the terms of the transaction, such as the selling price, shares, financial terms, or payment schedule. Succession planning combined with business valuation allows the owner to secure the future of their business, ensure a smooth transition of power and business continuity, and provide a proper return on investment.