AI and data readiness

Business succession planning assessment

Business succession planning prepares a company to change hands, to family, management or an outside buyer, without losing customers, staff or value. This ten-question assessment gives a preliminary readiness score and the next actions to take first.

Ten questions

Successor and leadership

Has a successor (family, management or outside buyer path) been identified?

Is there a management team that could run the business day to day?

Owner transition

Does the owner have a target date and role after the transition?

Are key customer and supplier relationships shared beyond the owner?

Financial and legal readiness

Has the business had a recent independent valuation?

Are buy-sell, estate and tax plans in place and current?

Documentation and knowledge

Are core processes documented so others can follow them?

Is there an inventory of systems and operating records with owners?

Stakeholders and timing

Have family members, partners or key staff been consulted?

Is there a timeline of three or more years to prepare?

Check whether a client may qualify →

Inputs

Ten questions
Two per dimension, each worth 0, 5 or 10 points.
Not sure
Scored 0 and listed as an item to confirm.

Outputs

Preliminary score
Out of 100, with a readiness band.
Dimension breakdown
Points out of 20 for each area.
Prioritized actions
Lowest-scoring items first.
Summary
Downloadable text for an advisor conversation.

How it is calculated

First option 0 points, second 5, third 10. Bands: 75–100 Well prepared, 45–74 Partly prepared, 0–44 Early preparation.

  • Successor and leadership: Has a successor (family, management or outside buyer path) been identified?
  • Successor and leadership: Is there a management team that could run the business day to day?
  • Owner transition: Does the owner have a target date and role after the transition?
  • Owner transition: Are key customer and supplier relationships shared beyond the owner?
  • Financial and legal readiness: Has the business had a recent independent valuation?
  • Financial and legal readiness: Are buy-sell, estate and tax plans in place and current?
  • Documentation and knowledge: Are core processes documented so others can follow them?
  • Documentation and knowledge: Is there an inventory of systems and operating records with owners?
  • Stakeholders and timing: Have family members, partners or key staff been consulted?
  • Stakeholders and timing: Is there a timeline of three or more years to prepare?

Worked example (illustrative)

Illustrative only: an owner with management candidates discussed (5), a strong team (10), no target date (0), shared relationships (5), no valuation (0), outdated estate plans (5), partial documentation (5), no records inventory (0), informal stakeholder talks (5) and a two-year runway (5) scores 40, Early preparation, with the transition date first on the list.

Assumptions and limitations

  • Self-reported and preliminary; not legal, tax or valuation advice.
  • Family and estate matters need qualified advisors.
  • A score does not predict a sale price or outcome.

Questions and answers

When should succession planning start?

Ideally three to five years before the planned transition.

What are the main succession paths?

Family transfer, management buyout, employee ownership or sale to an outside buyer.

Why does documentation matter?

Successors and buyers need to run the business without the owner's memory.

Who should be involved?

The owner, key stakeholders, and legal, tax and financial advisors.

Sources

Content reviewed October 9, 2026 by the SourceX Partnerships Team. Results are calculated in your browser; nothing you type is stored.

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