When we think about succession planning, we usually jump directly to complex tactics: ESOPs, management buyouts and private equity structures.
But rushing to these technical solutions might be the very reason many advisors avoid succession planning conversations with business owner clients. Their complexity often creates a barrier, making succession planning feel like unfamiliar territory rather than a natural extension of what advisors already do well.
What if we reframe succession planning entirely?
The technical details matter eventually, of course. But starting with spreadsheets and transaction structures misses something fundamental. Behind every business transition stands a person with unique priorities, concerns and dreams for their future. The technical path becomes much clearer once we understand what truly matters to them.
Putting The Human Element First
For 25 years, financial planning technology has evolved to address personal wealth. Meanwhile, business assets, often a client’s most valuable possession, remain treated like any other line item on a balance sheet. This approach misses what matters most to owners who’ve poured their lives into building something meaningful.
Advisors excel at discussing retirement planning with clients, but often struggle to apply those same prioritization skills to business transitions. They see succession planning as something foreign, requiring specialized expertise, when in reality they already possess the fundamental skills needed to have these conversations with business owners.
Succession Planning As A Prioritization Exercise
Instead of immediately diving into transaction structures, advisors should consider approaching succession planning as a prioritization conversation. This subtle shift transforms the entire experience.
Start by asking: What does this business owner truly value?
- Maximizing financial proceeds?
- Preserving family legacy?
- Ensuring business continuity?
- Maintaining control over timing and terms?
- Minimizing transaction costs?
Once advisors identify the business owner’s priorities, the path forward becomes clearer. Different exit strategies naturally align with different priority sets. For example, the owner optimizing for legacy might choose a family succession or ESOP, while one focused on maximizing proceeds might pursue a strategic buyer.
You Already Have These Skills
You don’t need to reinvent your practice to work with business owners. Succession planning is fundamentally a prioritization conversation with your clients, just like you’re used to having in other areas.
Succession planning is fundamentally a prioritization conversation with your clients.
This realization removes a significant barrier for advisors hesitant to engage with business owners nearing transition. The skills you use daily, like deep listening, values clarification and aligning financial strategies with personal goals, transfer directly to succession planning conversations.
Succession Planning Beyond Numbers: The Emotional Journey
The most overlooked, and yet arguably the most important, aspect of business transitions isn’t technical – It’s emotional. Founders have invested not just capital but identity into their companies, and the prospect of separation brings complicated feelings that numbers alone can’t address.
For advisors, recognizing the emotional impact of building an enterprise and then transitioning out of it translates into conversations that make the business owner feel heard and understood.
Asking great questions, listening to what business owners truly care about and showing them a path aligned with those priorities creates space for clients to process what is ultimately a significant life change. Acknowledging both the financial and personal dimensions of succession planning helps advisors differentiate themselves from those focused solely on transaction mechanics.
The Missing Deliverable
Succession planning today lacks the structure it requires. While modern financial plans are delivered with polished presentations and clear visuals, succession advice is typically conveyed via scattered Word documents and basic spreadsheets.
Succession advice is typically conveyed via scattered Word documents and basic spreadsheets.
Today’s business owners need more. They deserve to be able to clearly visualize potential exit paths and see how their priorities align with different outcomes. Most importantly, they need tangible frameworks to guide their complex, life-changing decisions.
Advisors who can provide this structured approach transform abstract, intimidating exit concepts into a clear process for decision-making demonstrate value beyond traditional investment management and deepen relationships with business owners at their most crucial moments.
Succession Planning As A Competitive Advantage
The next decade will see more than $10 trillion in business value changing hands. Advisors who master this priority-focused approach will naturally attract business owners seeking guidance during their most significant financial and personal events.
Reframing succession planning as a natural extension of good advising fundamentals strips away unnecessary complexity, enhancing advisor confidence along with the client experience and creating better outcomes overall for business owners.
Jason Early is the Founder and CEO of RISR, a platform designed to help financial advisors serve business owners.
