Accounting Practice – Who Manages Your Succession Planning Process?

We speak with the practice’s owners and partners about sales, mergers and succession planning issues on a daily basis. Many business owners have a general idea of ​​what they want their exit strategy to be, but have not formalized it into an executable plan. They have an idealized vision of their exit.

For most companies, the responsibility for creating and executing the succession plan rests with the managing partner. Managing partners tend to be very busy with clients and the daily operations of their companies. As a result, it is very easy for succession to take a backseat.

Sometimes the informal conversation between partners goes through succession planning. But it is not linked to the general strategic planning of the company. Nor are the actual needs, motivations, and values ​​of individual partners addressed.

In order for us to increase the likelihood of success across multiple partner companies, ProHorizons uses three distinct phases in our succession planning process: Discovery, Design, and Execution.

The Discovery Phase It involves identifying the individual values ​​and goals of each partner, and defining the alignment of shared values ​​and goals among the partners. Performing thorough discovery increases the probability of a proper succession or merger at run time. The goal of the discovery phase is to help business owners understand their individual and mutual interests and motivations in business succession.

the design phase It involves taking what was discovered in the first phase and linking it to the strategic needs of the company. During this phase, the partners address the issues identified in the discovery phase. They anticipate challenges that will affect succession. This also allows them to manage the expectations of customers and staff. The plan will include goals, deadlines, and resources needed to ensure a successful outing.

The execution phase it is where the results of the previous phases are tested and implemented. This phase begins as soon as the design phase is complete. Includes a periodic review of the plan. Changes in the company will lead to adjustments in the plan. The final part of the execution may be a merger, an internal succession agreement (sale to insiders), a sale to outsiders, or some other solution.

Succession planning supports the viability of a lifetime’s work. In smaller companies, it means peace of mind and ensuring that your hard work pays off in the long run. In larger companies, it ensures stability in the leadership and management of a company. Ensures that clients’ needs are not neglected in times of transition and that partners’ goals are recognized and met.