Early Succession Planning: Why Forward-Thinking Principals Have the Advantage

Business Brokering Tuesday 25th of November 2025

Across the accounting and financial planning professions, succession is often viewed through the narrow lens of retirement — something to be dealt with at the end of a long career, preferably when everything is neatly wrapped up and life has slowed to a gentler pace. In reality, succession planning is far broader, far more flexible, and far more empowering than most practitioners initially believe. Far from being an admission that one’s career is drawing to a close, well-timed succession planning is an exercise in leadership, stewardship and long-term thinking.

What we see every day at Practice Exchange is this:
many principals don’t sell because they want to retire — they sell because they want a better way of working.

Some choose to stay on as consultants or advisers for years.
Others stay on part-time, mentoring staff or supporting key clients.
Some continue doing the work they enjoy without having to shoulder the weight of ownership.

For this reason, succession planning is increasingly a conversation about designing the next stage of your professional life, not ending it.

Succession is Not a Finish Line — It’s a Strategy

A common misconception among practitioners is that succession planning is something you begin when you’re ready to step away completely. In reality, early planning gives you the freedom to shape the future of your firm and your own role in it long before any major decisions need to be made.

When succession is approached early, it becomes:

  • an opportunity to define your preferred role
  • a way to reduce managerial burden while still practising
  • a means of strengthening the business for staff and clients
  • a path to securing long-term continuity and stability
  • a mechanism for protecting goodwill
  • a platform for ensuring your legacy remains intact

It is far easier — and far more enjoyable — to design a future when time is on your side.


Why Succession Conversations Often Begin Long Before Exit is on the Horizon

Many principals begin succession planning not because they feel ready to leave, but because something in the business environment prompts them to think ahead.

For some, it’s the gradual increase in regulatory obligations.
For others, it’s changes in staffing, client expectations, or technology.
And for many, it’s simply recognising that “working indefinitely” is neither realistic nor desirable.

What unites them is not urgency, but foresight.

Succession planning becomes an act of prudence, not pressure.
A way of ensuring that when decisions eventually come, they are made from a position of clarity and control.


The Quiet Risks of Leaving Succession Too Late

Practices rarely falter because of a single event.
Instead, subtle shifts accumulate over time:

  • a trusted senior employee leaves unexpectedly
  • a few long-standing clients move on or retire
  • operational knowledge remains undocumented
  • day-to-day dependency on the principal grows
  • systems lag behind best practice

Individually, these changes may feel manageable. Collectively, they can make it harder to transition the practice smoothly when the time eventually arrives.

Early succession planning doesn’t prevent every challenge, but it puts the practice — and its principal — in a stronger position to navigate them.


A Refreshed View of Internal Succession

Historically, internal succession was seen as the natural path: a senior accountant, a long-standing manager, or a loyal adviser would take over the practice.

Today, internal succession still plays an important role, but it is no longer the default it once was. Younger professionals increasingly seek flexibility, mobility and lifestyle balance, while ownership — with its responsibilities and risks — is less universally aspirational than it once was.

That said, internal pathways still succeed, particularly when:

  • the successor is identified early
  • the transition is phased
  • mentoring is intentional
  • financing arrangements are structured sensibly
  • expectations are clear

These outcomes are best achieved when the conversation begins years — not months — before the transition.


External Succession: A Professional, Not Personal, Option

External succession is sometimes misunderstood as a “last resort.” In reality, it is often simply the most practical, commercially sound or culturally aligned option available.

When managed properly, an external transition can:

  • protect staff
  • preserve client relationships
  • harmonise cultures
  • allow the principal to stay on if desired
  • and bring fresh capability into the firm

Most importantly, it gives the principal real choice — not the narrow set of options that tend to appear when decisions are made late.

We meet many principals who initially prefer the idea of internal succession but find that external pathways offer greater stability, clearer terms, and smoother handovers.


The Role of Time in Creating Better Outcomes

One of the strongest advantages of early succession planning is that it allows for a transition shaped by preference rather than pressure.

When time is available, the principal can:

  • choose the right successor rather than the available one
  • negotiate terms that genuinely suit their lifestyle
  • phase their exit or ongoing involvement
  • avoid rushed or reactive decision-making

And importantly, time allows the principal to remain in control — not circumstance, urgency or external events.

Succession is far more enjoyable when it feels like a choice.


Designing a Role After the Transition

A point often overlooked is that succession does not mean stepping away from the work you enjoy. Many principals who transition early find the next stage of their career is more fulfilling than the years immediately before the transition.

Common post-transition roles include:

  • Senior Adviser: continuing with selected clients
  • Consultant: supporting complex matters or specialist areas
  • Mentor: guiding younger practitioners
  • File Reviewer: applying decades of judgement where it adds most value
  • Strategic Adviser: contributing to growth initiatives or niche advisory services

For many practitioners, these roles offer the best of both worlds — meaningful work without the administrative and managerial demands of ownership.

This is why early planning is not simply about protecting the practice; it’s about shaping the principal’s life after ownership in a way that feels purposeful.


Why Staff and Clients Benefit from Early Planning

Clients, particularly long-standing ones, value certainty. Staff value stability and clarity. Early succession planning creates both.

When planning is done well:

  • clients experience continuity
  • staff feel secure rather than anxious
  • expectations are clear
  • knowledge is transferred gradually
  • the firm avoids sudden or disruptive change

The practice becomes a more robust, organised and resilient organisation.

Succession planning isn’t just about the principal; it’s about everyone who depends on the business.


 

Succession Planning as an Act of Professional Stewardship

Ultimately, the practitioners who plan early are not doing so out of fear; they are doing so out of responsibility — to their clients, their staff, their family, and themselves.

Early succession planning reflects:

  • pride in the practice
  • respect for the profession
  • care for clients
  • loyalty to staff
  • and a desire to preserve the culture built over decades

It is not a retreat from practice ownership but a thoughtful evolution of it.


The First Step Is Simply a Conversation

Succession planning does not begin with a commitment.
It begins with a conversation — confidential, calm, and without obligation.

A conversation that explores:

  • your goals
  • your preferred timeline
  • the type of transition that suits you
  • the role you might like to retain
  • how your clients would be supported
  • how your staff would be protected
  • and what the next 2 to 5 years could look like

Once principals understand their options, the process becomes clearer, easier and far more grounded.


Take the Next Step — Confidentially

If you’re beginning to think about your longer-term plans and would like to have a private, confidential conversation about timing and your options, you’re welcome to book a discussion here:

https://calendly.com/mark-777/30min

At Practice Exchange we work exclusively with accounting and financial planning professionals, supporting transitions with the discretion and commercial insight expected of experienced practitioners.

 

Mark Witt CA

Mark is the Head of Brokering at Business Exchange with over 20 years experience and 400+ completed transactions


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