How to keep the plan current to help ensure that your client’s strategy still works
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Succession planning stage 4: Periodic review
Key aspects of periodic review:
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A succession plan that isn’t updated is a plan at risk
Even the most carefully crafted plan can fall short if it isn’t revisited over time. Stage 3 of the process focused on implementation: getting the documents in place and funding the plan. The final stage involves regular reviews, every year or two, to make sure the plan continues to fit.
This agreement should be tailored to the business’s structure and ownership. In closely held businesses — especially those with multiple partners or family members involved — a formal agreement can help prevent confusion and conflict. In fact, agreements between co-owners are among the most common and practical approaches, often serving as the foundation for long-term continuity.
Why succession plan reviews matter
Businesses evolve. So do goals, personal health, tax laws, market conditions, family dynamics and so much more. A plan that made perfect sense 3 years ago might no longer reflect the realities of the business — or the owner’s vision for the future.
Encourage clients to schedule a formal review every year or two. This regular check-in helps to:
Confirm that the plan still aligns with the owner’s goals
Ensure that the funding mechanism is still adequate
Revisit key assumptions regarding value, timing and successors
Keep all relevant documents aligned and up to date
Key questions to explore
When leading a periodic review with a business owner, focus on these high-impact areas:
Business value
Has the company grown or declined in value? If so, does the existing funding — whether from life insurance (the most common source), installment payments, a sinking fund or cash — still cover the projected purchase price?
Ownership and leadership
Is the designated successor still willing and able to take over? Have other family members, employees or partners become more or less involved?
Funding and liquidity
Are there new assets or liabilities that could affect the business’s ability to fund a transition? Has the cost of insurance changed, especially in co-owned businesses where buy/sell agreements depend on adequate funding?
Stakeholder awareness
Do the people involved still understand the plan and their role in it? Has anyone left the business or taken on a more prominent role?
Documentation
Is the buy/sell agreement current? Are operating agreements, estate planning documents and insurance policies aligned with the plan?
Support business continuity — now and later
In many ways, stage 4 helps to prevent surprises. It’s a chance to help clients spot gaps, update assumptions and adapt to change before a transition is triggered. As a financial professional, it’s also a key moment to reinforce your value. A thoughtful review not only protects the succession plan, it also strengthens your client relationship and opens the door to broader planning conversations.
Succession planning doesn’t end with a signed agreement. By guiding clients through the 4 stages — discovery, planning, implementation and review — you help them clarify their goals, build a workable strategy, put the right structures in place, and keep the plan current as life and the business evolve.
With regular reviews, the succession plan becomes not just a strategy but an enduring safeguard for the owner’s vision and the business’s continuity.
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