The Role of Succession Planning in M&A

Transitioning leadership is a critical concern for companies preparing for mergers and acquisitions, as many businesses struggle with the idea of selling without a clear successor in place. The importance of a well-defined succession plan becomes evident when considering that a founder's absence can hinder the company's operational effectiveness, rendering it less attractive to potential buyers. To ensure a successful transition, founders must focus on identifying their company's future needs and the type of leadership required to meet those goals. By establishing a value creation plan that outlines targets for growth, leaders can better determine the characteristics and skills necessary for the next CEO.