{"ok":true,"canonical_url":"https://dealroom.so/glossary/succession-planning","api_url":"https://dealroom.so/api/public/glossary/succession-planning","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-planning","term":"Succession planning","group":"Reading the business","definition":"The process of identifying and developing internal people to fill key positions in the business when current staff leave. For a buyer, it reveals how reliant the business is on the current owner.","what_it_means":"When buying a business, poor succession planning means you inherit a high risk if key employees depart after the sale. Evaluate if the business has documented processes and trained deputies. This impacts your operational continuity and the business's intrinsic value.","url":"https://dealroom.so/glossary/succession-planning","official_sources":[],"related":[{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"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"}]},"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 planning","url":"https://dealroom.so/glossary/succession-planning","source_type":"DealRoom Data"}}