As the baby-boomer generation nears retirement, sole proprietors and managing equity partners are beginning to focus on an exit strategy for their businesses. One such exit strategy is to sell the firm to an internal successor – but this requires a thoughtful plan years before stepping away.
Much has been written about succession planning for large organizations – from successors to the organization’s executive team to the development of general internal talent pools. Can many of the same methods be employed in a small- to mid-size business environment? We believe the answer is “yes.”
In fact, “succession management is more critical to the viability of a small company than to a large company because every position counts more.” Byham & Paese, 2002