{"ok":true,"canonical_url":"https://dealroom.so/glossary/succession-plan","api_url":"https://dealroom.so/api/public/glossary/succession-plan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"succession-plan","term":"Succession plan","group":"Reading the business","definition":"This is a plan for how leadership and key roles will be transferred when the current owner leaves. For buyers, it shows how smoothly the business can continue without the seller.","what_it_means":"A strong succession plan, or lack thereof, reveals much about the business's reliance on the seller. As a buyer, you need to understand who does what and how you'll transition into or replace critical roles to ensure operational continuity.","url":"https://dealroom.so/glossary/succession-plan","official_sources":[],"related":[{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"How can life insurance support business succession planning and estate equalization?","url":"https://dealroom.so/sba-7a/questions/how-can-life-insurance-support-business-succession-planning-and-estate-equalization"},{"question":"How can life insurance facilitate a smooth succession plan for a family-owned business?","url":"https://dealroom.so/sba-7a/questions/how-can-life-insurance-facilitate-a-smooth-succession-plan-for-a-family-owned-business"},{"question":"Is a comprehensive business plan mandatory for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-a-comprehensive-business-plan-mandatory-for-an-sba-7-a-loan"},{"question":"Is a detailed business plan necessary for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/is-a-detailed-business-plan-necessary-for-an-sba-7-a-loan-application"},{"question":"How important is a business plan for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/how-important-is-a-business-plan-for-an-sba-7-a-loan-application"},{"question":"Does the SBA require me to create a formal business plan to apply?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-require-me-to-create-a-formal-business-plan-to-apply"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Succession plan","url":"https://dealroom.so/glossary/succession-plan","source_type":"DealRoom Data"}}