Building a thriving business is a testament to an owner’s dedication and hard work. However, it can be easy for busy owners to overlook a crucial aspect of entrepreneurship: planning for the succession of their business.

While thoughts of stepping down or selling your business may seem far away, it is never too early to begin planning for an eventual exit. Developing a comprehensive plan can help protect the legacy you’ve built and secure your business’ future.

Determine your business’ value

Understanding the value of your business is critical when preparing for a sale or transition of ownership. You might have an idea of what your business is worth, but it’s often a good idea to obtain independent opinions on the valuation.

Hiring an outside party with expertise in this area, such as an accountant, tax expert, or advisor, can help provide an objective valuation. These same experts can also educate on market conditions and trends that might impact that value.

Develop your value proposition

Think about what makes your business stand out. What are your biggest differentiators from competition? What is your elevator pitch to buyers or investors?

Even if your plan is to pass the business to a family member or sell it to a long-time employee, this in-depth analysis helps future owners further improve and maintain your business’ success.

Consider these questions as a starting point for this exercise:

1. What is your business’ history and story in the marketplace?
2. How does your business compare to its peers?
3. What sets your business apart from others?

Understanding what makes your business attractive to buyers can also help you identify the areas you might need to optimize before a sale.

Prepare your business for sale

Interested buyers will want to know the business’ history and plans. Potential buyers will scrutinize your financial records, including profit margins, revenue trends, inventory turnover, and expenses. Be prepared with a well-defined financial history to attract buyers and justify the asking price, as well as information about customer demographics, repeat business rates, and existing lease agreements and contracts.

Improvements in these areas can greatly impact business value. Develop a plan to address these needs before diving into a sale. Consider the time needed to build up these areas in your succession plan to ensure you can accomplish everything.

Consider succession planning now

Whether you are just a few years from exiting the business or much longer, it is never too early to begin planning your exit strategy. You have dedicated time and resources to building a successful business, and you deserve to be rewarded for those efforts. Seek out the right team of experts to assist you in this process.

Disclaimers:

The information on this website is provided for general informational purposes only and does not constitute tax, financial, legal, technical, or professional advice. Always consult a qualified professional for advice tailored to your specific circumstances. While the content has been prepared with reasonable care, it may be incomplete, inaccurate, or not applicable to your situation.

NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.

Investment, Insurance and Non-Deposit Trust products are: NOT A DEPOSIT • NOT FDIC INSURED • NOT GUARANTEED BY THE BANK • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE

Third-party product, service and business names are trademarks/service marks of their respective owners.

Deposit products are offered by the Huntington National Bank, Member FDIC. ⬢®, Huntington®, ⬢Huntington® and Huntington Private Bank® are federally registered service marks of Huntington Bancshares Incorporated. ©2025 Huntington Bancshares Incorporated. 2053700 – 250527