A business succession plan is a strategy for transferring ownership, leadership, or both when an owner retires, becomes disabled, or exits the business. A thoughtful plan may help support continuity and provide clarity for employees, family members, and business partners.

Many business owners have a significant portion of their net worth tied to their company. Diversifying may help reduce concentration risk by spreading assets across multiple investments and financial resources.

Before selling a business, owners often evaluate tax implications, retirement income needs, estate planning considerations, and future investment strategies. Planning in advance may provide more flexibility when opportunities arise.

Concentration risk occurs when too much wealth depends on a single asset or business. Owners often explore strategies that build assets outside the business while maintaining alignment with long-term objectives.