Succession planning while running a business in Georgia

At the outset, determine whether ownership, management, or both are to be transferred. Potential successors include family members, employees, co-shareholders, external managers or buyers. For each candidate, assess professional suitability, financing, decision-making ability, conflicts of interest and the onboarding time required. The business valuation should transparently take into account profitability, assets, debts, customer concentration, dependence on key people, contracts and necessary investments. Registry and accounting records, tax returns, contracts, permits, personnel records, intellectual property rights and pending disputes should be fully organized. Undocumented procedures and knowledge held solely by the current owner make the handover more difficult and can reduce the business's value. A handover matrix can record who informs customers, suppliers, employees, banks and authorities, and from what date new powers take effect. Bank access rights, electronic access, powers of attorney and signing authority should be changed in a controlled manner. Contracts and permits must be reviewed to determine whether they remain in force, require consent or must be newly applied for. The purchase price, gift, installment payments, earn-out or other financing components affect liquidity, collateral and the allocation of risk. Tax consequences should be assessed separately for the transferor, successor and business. An emergency plan should specify who can temporarily make decisions and secure operations in the event of death, illness or sudden incapacity. A planned handover requires measurable dates for onboarding, the transfer of decision-making, data access, communication and final review.