Taking over a family-owned or other closely held business is a major milestone, one that brings both opportunity and responsibility. For incoming owners, the transition isn’t just about a new title; it often involves stepping into a more hands-on, decision-making role across many parts of the business. That shift can be exciting. But without a clear plan, it can also be overwhelming.
That’s why planning ahead is so critical. Succession isn’t just a moment in time. It’s a process that, when done thoughtfully, sets the stage for long-term success. Whether you’ve been involved in the business for years or are stepping in from another venture, your ability to lead with clarity and purpose starts well before the official handoff.
At MSB Law, we help families and others navigate these transitions with intention, so the next generation of ownership is prepared, confident, and aligned for what’s next.
Here are the key stages of planning we encourage every incoming owner to consider:
1. Understand the Foundation
Succession planning starts with a deep understanding of the business as it exists today. This goes beyond reviewing financials or organizational charts. You must ask questions,and listen closely. What are the company’s core values? Where does it perform well, and where are the weak spots? What relationships (employees, customers, vendors, community) are key to its success?
Whether you’ve been involved in daily operations for years or are just beginning to take an active role, building a clear picture of the current state is essential. This foundation will inform every decision you make going forward.
2. Identify the Gaps
No transition is perfect. Often, the outgoing generation carries with them years of institutional knowledge, personal relationships, and deeply ingrained habits that aren’t always well documented. What systems are missing? What roles are still too dependent on a single person? Are there legal or financial risks that haven’t been addressed?
Succession planning is the time to uncover and address those gaps. Bringing in experienced advisors, such as a business coach, fractional COO/integrator, a fractional CEO or CFO, trusted legal counsel,a business-savvy CPA and/or CFP, can help you create solutions now so that you are not caught off guard later.
3. Align the Vision
Ownership brings with it the opportunity to shape the future. But first, you’ll need to get clear on where you want to take the business. Do your goals align with those of the family, or other key contributors and stakeholders? What’s your vision for growth, innovation, or transition? What do your people, and your local community, need most from the business and you in the future?
These aren’t easy questions. But alignment, both internal and external, is critical if you want to avoid confusion or conflict down the road.
4. Build Your Team
You don’t have to do it all alone. In fact, you shouldn’t! Whether it’s a single trusted advisor, a leadership team,outside professionals, or some combination, assemble a team of people who complement your skills and challenge your thinking. Surrounding yourself with the right support makes all the difference, especially when juggling multiple business interests or initiatives.
Remember: good leadership isn’t about having all the answers. It’s about asking the right questions, knowing who to turn to when things get complex, seeking wise counsel, then making the tough decisions that are best for the future.
5. Formalize the Transition
Too often, succession plans live in someone’s head or in a dusty binder. Don’t let that be the case for you. Work with trusted legal and financial professionals to document the structure of the transition, ownership agreements, governance policies, compensation arrangements, and contingency plans. The more clarity you create now, the smoother things will go in the future.
It’s not just about protecting the business. It’s about protecting your relationships that matter most.
6. Step Into Leadership Intentionally
As the new owner, your presence will set the tone. Employees, clients, vendors, and the community will all be looking to you for signals about what’s changing and what’s staying the same. Lead with intention. Communicate openly. Embrace what’s working, and don’t be afraid to evolve what isn’t.
Stepping into leadership isn’t about replicating the past. It’s about building on the best of the past, with your own voice, vision, and values.
Final Thoughts
Succession isn’t just a single legal event or “the day you get the keys to the new office”. It’s a personal, emotional, and strategic journey, especially for those who are actively involved across different areas of the business.
At MSB Law, we help incoming owners navigate business leadership, succession planning, and transitions with confidence. Whether you’re at the beginning of the process or already deep in the details, we’re here to help you navigate it with clarity and care.
Have questions about succession planning? Our experienced attorneys are ready when you are.