What Exactly Is Succession Planning? 

By Fiona Ettles, Partner at FinConnect

Every business owner will exit one day, but few have a clear plan for how, when, or who will take over. Whether you run a professional services business, a growing advisory firm, or a multi-partner practice, succession planning is one of those topics that is easy to put off until it becomes urgent. 

At its heart, succession planning is about protecting the value you have built and ensuring your clients, staff, and legacy are in safe hands when you step back. 

So, what is succession planning really about? 

Business.gov.au defines it as “helping you plan for the day when you leave your business.” In practice, it is far more involved than a single plan or event. 

A true succession plan looks at the business from every angle including ownership, leadership, culture, profitability, and people. It might involve transferring equity to key team members, preparing for a future sale, planning for a smooth external sale or building internal pathways for leadership continuity.  

It is not just about exiting; it is about setting up your business to endure. 

Why it matters 

When succession planning is delayed, uncertainty can creep in. We have seen promising firms lose senior staff, stumble on valuations, or miss opportunities simply because there was no clear plan in place. 

Succession planning is also about alignment. Getting all owners on the same page about timing, value, and future direction is essential. Without it, even the strongest relationships can strain under assumptions or unspoken expectations. 

When business owners start early, often years before retirement, they have time to shape outcomes, reward their people, and achieve a win-win transition that supports everyone involved. 

Our Learnings 

After decades advising firms through ownership transitions, we have found three things make the biggest difference: 

Clarity – understanding what the business is worth and what both parties want. 

Communication – keeping expectations clear and consistent. 

Commitment – following through once the plan is in motion. 

Getting those three elements right can turn a challenging transition into an exciting next chapter. 

Coming soon: The FinConnect Succession Planning Guide 

Later this month we will release a comprehensive guide to succession planning written specifically for professional service firms. 

It breaks down the process step by step, shares real-world case studies, and offers practical insights into how to structure a fair and sustainable plan. 

If you have ever wondered where to start, or what your business might be worth in someone else’s hands, this guide is for you. 

Stay tuned for the release of our full Succession Planning Guide. You can subscribe to our newsletter to receive it straight to your inbox when it’s published. 

If you would like to discuss your own succession goals or where to begin, you can also book a call with our team.  

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