Succession planning (definition)
The funded, dated mechanics of transferring agency ownership and leadership; perpetuation's working schedule.
Succession planning is the working schedule behind perpetuation: who takes over leadership and ownership, on what timeline, financed how, and documented where. It covers the management transition (clients, carriers, staff) and the equity transition (valuation, financing, buy-sell terms) as two linked tracks.
The financing question dominates in practice. Internal buyers rarely have the capital that external buyers bring, so funded succession depends on seller financing, bank debt sized to the agency’s cash flow, or gradual equity transfers that start years before control changes.
A buy-sell agreement triggered by death, disability, or departure is the minimum viable document; without it, the plan is a hope with a handshake.