Why Succession Planning Is Essential — and How Presti & Naegele Can Help You Do It Right

What Is Succession Planning, Really?

Succession planning is often misunderstood. Many assume it’s just a formal document or a basic exit strategy. Others believe it’s only necessary once a business owner is close to retirement. In reality, it’s much broader and more strategic than that.

Succession planning is the process of identifying and preparing future leaders to take over ownership and/or management of a business. It includes legal, financial, operational, and interpersonal elements. And it should be done years — not months — in advance.

At Presti & Naegele, we see succession planning as an investment in the long-term viability of your business or family enterprise. Whether you're transitioning leadership to a family member, long-term employee, or outside buyer, the process needs to be handled with care, expertise, and objectivity.

The Key Challenges of Succession Planning

Succession planning isn’t simple. That’s why so many businesses avoid it until the last minute — or ignore it entirely. But avoiding the process doesn’t prevent the risks; it increases them.

Here are some of the most common challenges we help our clients navigate:

Emotional Resistance

Letting go is hard. For many founders or family business leaders, the idea of stepping down can be emotionally complex. This resistance often delays critical planning.

Family Conflict

When businesses are family-owned, succession planning can bring up long-standing interpersonal tensions, unclear expectations, or competing visions for the future.

Tax and Legal Complexity

Transferring ownership or leadership roles has major tax implications. Without proactive structuring, families can face avoidable estate taxes, penalties, or litigation.

Business Disruption

Unplanned or poorly managed leadership transitions can disrupt operations, affect client relationships, or lower business value — especially during key growth periods.

At Presti & Naegele, we address these risks head-on through structured planning and expert coordination across legal, tax, and financial matters. Our process is designed to reduce uncertainty — and build confidence.

Family-Owned Businesses: Special Considerations

Family businesses face a distinct set of succession planning challenges. Emotions, relationships, and roles are deeply intertwined — and any transition must take those into account.

At Presti & Naegele, we work closely with family business owners to address the following:

Generational Gaps

Younger generations may have different goals, management styles, or readiness levels. It’s important to align expectations early and establish leadership development timelines.

Ownership vs. Management

Just because someone inherits equity doesn’t mean they’re the right person to run the business. We help families differentiate between ownership transfer and operational control.

Open Communication

Transparency is crucial. Our team facilitates structured conversations among stakeholders to help avoid assumptions, miscommunication, or resentment.

Long-Term Legacy Planning

Succession planning should go beyond just choosing a successor. It should preserve the business’s mission, values, and long-term strategic direction.

We help clients structure succession plans that honor family legacy while also ensuring operational continuity. This includes coordination with estate planning attorneys, financial advisors, and tax professionals — all in one cohesive process.

What a Good Succession Plan Should Include

No two succession plans are exactly the same. At Presti & Naegele, we tailor every plan to the client’s specific needs, family dynamics, and business structure. But strong succession plans generally include several key components:

Leadership Identification

Who is best suited to lead the business into the next phase? This decision must balance skills, experience, leadership capacity, and interpersonal fit.

Training and Mentorship

Even strong successors need support. Developing a structured mentorship or transition period ensures knowledge transfer and reduces disruption.

Legal Documentation

Ownership transfers, trusts, buy-sell agreements, and board changes all require legal documentation. We coordinate with legal teams to ensure everything is properly recorded.

Tax Strategy

Tax consequences can make or break a transition. We develop proactive strategies to minimize estate taxes, capital gains, and other liabilities.

Contingency Planning

What if the chosen successor becomes unavailable? Good plans include backup options and emergency procedures to ensure continuity.

Governance Structure

Who will be making decisions — and how? Governance policies can prevent disputes and clarify authority going forward.

A plan without execution is just a document. That’s why our team at Presti & Naegele also helps clients implement every step of the strategy — not just design it.

How Presti & Naegele Builds Succession Plans That Work

Our succession planning process is collaborative, structured, and personalized. We don’t offer generic templates. Instead, we build long-term partnerships with our clients and provide tailored guidance that reflects their goals, values, and family dynamics.

Here’s what sets us apart:

1. Comprehensive Analysis

We begin with an in-depth assessment of the business, stakeholders, financials, and existing structures. This ensures we understand the full picture before offering recommendations.

2. Stakeholder Alignment

Our team facilitates alignment among family members, partners, and future leaders. This is often the most important (and most overlooked) part of the process.

3. Integrated Expertise

We bring together advisors from legal, financial, and tax backgrounds — ensuring the succession plan works across all fronts. This reduces friction, overlap, and blind spots.

4. Long-Term Strategy

We don’t just plan for the next year — we help structure transitions that protect the business and family wealth for decades. That includes integration with estate plans, philanthropic goals, and future growth strategies.

Clients choose Presti & Naegele because they want more than just a checklist. They want trusted advisors who guide them through one of the most important decisions they’ll ever make.

Real-World Scenarios and Solutions

Let’s look at a few real-world situations where structured succession planning made all the difference:

Scenario 1: Leadership Conflict in a Family Business

A second-generation family-owned company was struggling to choose between two siblings with competing visions. Without a plan, resentment was growing — and key employees were losing confidence.

We facilitated family meetings, clarified governance roles, and developed a co-leadership strategy with accountability metrics. We also worked with estate planners to align ownership shares with each sibling’s role.

Outcome: The business stayed intact, both siblings felt heard, and the transition happened with minimal disruption.

Scenario 2: Founder Exit Without Tax Strategy

A successful business owner nearing retirement wanted to gift the business to his daughter. But without a proper plan, the transfer would have triggered a significant tax burden.

We created a phased gifting strategy, coordinated with legal counsel, and implemented trust structures to protect both the business and the family wealth.

Outcome: The daughter took over ownership with minimal tax liability, and the family retained control of the company.

The ROI of Succession Planning

Succession planning may feel like a cost, but in reality, it’s a long-term investment — one that pays off in stability, tax savings, and legacy protection.

Here’s what our clients typically gain:

• Operational Continuity: Reduce the risk of leadership gaps or crisis-mode transitions
• Tax Efficiency: Save significant capital with proactive tax and estate strategies
• Family Harmony: Prevent conflict with transparent governance and fair agreements
• Increased Business Value: Buyers and investors favor companies with structured succession plans
• Peace of Mind: Know your business — and your legacy — are in good hands

At Presti & Naegele, we measure our success by your ability to move forward with confidence — knowing the hard decisions have been made and the groundwork has been laid.

Conclusion: Start Your Succession Plan With Confidence

You don’t have to wait for a crisis to start thinking about the future. In fact, the best time to plan your succession is before you need to.

Whether you’re passing the torch to family, grooming internal leaders, or preparing for a potential sale, having a structured succession plan makes all the difference.

At Presti & Naegele, we help business owners and families create customized succession strategies that work. We guide you every step of the way — from the first conversation to the final handoff.

Don’t leave your future to chance. Schedule a consultation with us today and build a succession plan that preserves your values, protects your legacy, and positions your business for long-term success.