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Don ’ t be Logan Roy .
By JOSEPH M . CONFESSORE Senior Vice President , Team Leader , Commercial Banking and Wealth Management , Certified Exit Planning Advisor ( CEPA ®) Washington Trust
In the popular HBO series “ Succession ,” domineering patriarch Logan Roy doesn ’ t trust any of his family members to take over the helm of his media conglomerate , so he refuses to plan for his succession , leaving the family and the business in turmoil upon his unexpected death .
While wildly entertaining , “ Succession ” delivers a sobering lesson on what can go horribly wrong if you don ’ t plan for and protect the future of your business .
Fewer than one in four private companies report having a succession plan in place .[ 1 ] It ’ s understandable . You are so focused on the day-to-day operations and immediate challenges of running your business that it ’ s easy to push planning for the future to the back burner . However , as the Roys learned , waiting too long to develop a succession plan leaves the organization vulnerable to disruptions and a leadership vacuum , putting at risk the long-term survival of your business and the preservation of the wealth you ’ ve built .
The bottom line : It is never too early to start planning your business succession .
Bring in the Professionals
The first step is engaging with qualified professionals ( wealth and investment advisors , accountants , lawyers ). Certified Exit Planning Advisors ( CEPA ) have earned a designation specifically to advise business owners on how to sell or transition their business successfully . Once assembled , your team should work with you well in advance of any solicitation or offer to navigate the complexities of succession planning and address not only the technical business items ( such as corporate restructuring , business valuations , tax efficiency , and regulatory issues ), but also the equally important human side of a successful transition ( family dynamics , employee engagement and retention , corporate culture , change management ).
Derisk the Business
Look at diversification in your client base and supplier network . Conduct a thorough review of your assets , liabilities , contracts , and customer relationships to ensure they are in order . Are business insurance levels adequate to cover interruptions or losses ? This is a good time to organize your financial records , update your business plan , and address any operational inefficiencies . ( Related : Thinking of Buying or Selling Your Business ? Your Guide for Success )
Accelerate Business Value
Assess your competitive position and emerging opportunities , and ways to strengthen your assets , both tangible ( e . g ., cash , accounts receivable , inventory , and fixed assets ) and intangible ( e . g ., reputation , workforce , supplier and customer relationships ). It ’ s important that these assets are transferable to future leaders or potential buyers . Can your business function without you at the helm ? Owner dependence is a major threat to succession plans and ongoing viability .
Develop a Tax Strategy
Early planning is especially critical to reduce or mitigate the tax impact of business succession . While some tax planning options can be identified and implemented at or shortly before a
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Photos : designer491 via Getty Images , AlexD75 via Getty Images
122 RHODE ISLAND MONTHLY l MARCH 2025