Contributed by: Sam Gagne
As 2025 draws to a close, many successful business owners are turning their attention to year-end financials; finalizing tax positions, assessing profitability, and preparing reports for key stakeholders. Amidst the routine financial housekeeping, there lies a more strategic and often overlooked priority: business succession planning.
Succession planning is not a once in a decade project. For owners whose net worth is deeply intertwined with their privately held company, continuity planning should be a dynamic process, integrated into the rhythm of annual business reviews. The year-end window is an ideal time to pause, reassess and refine the succession strategy, particularly as the business evolves, tax policy shifts and personal circumstances change.
At Granite Harbor Advisors, we work closely with owners of closely held businesses, many of whom manage both the day-to-day operations and the long-term vision of their enterprise. These dual responsibilities can be burdensome and, at times, emotionally complex. The key to preserving enterprise value and protecting family wealth lies in proactively addressing continuity before it becomes a crisis.
This article offers a year-end checklist for business owners who recognize that succession planning is not just about retirement. It’s about resilience, risk management, and the ability to protect the legacy they’ve worked so hard to build.
Revisit and Clarify the Succession Vision
Every succession plan begins with a clear vision. Yet for many business owners, that vision can become outdated. Roles evolve, family dynamics shift, and market conditions bring new variables. Before closing the books on 2025, business owners should ask themselves:
- Who is the intended successor? Is it a family member, key employee, or outside buyer? Is this still the most suitable choice?
- Have any potential successors been adequately developed or evaluated this year?
- Have there been any personal or professional changes that might affect the long-term vision?
If the answers to these questions feel uncertain, this may be the year to bring in a third-party advisor for an objective perspective. At Granite Harbor, we often facilitate these conversations, helping business owners align personal financial goals with enterprise-level decisions.
Review Buy-Sell Agreements and Legal Documents
The most common pitfall we see in succession planning is a stagnant or incomplete buy-sell agreement. Too often, these documents are created early in a business’ life cycle and then left untouched even as valuations, ownership structures, and partner dynamics change.
Before year-end, owners should sit down with legal and financial advisors to ensure that all succession-related documents are up to date, including:
- Buy-sell agreements with valuation mechanisms that reflect current market realities
- Shareholder or operating agreements that account for recent ownership changes
- Estate documents that integrate business interests into the broader wealth transfer strategy
These documents should not be reviewed in isolation. Business continuity is not a legal issue alone; it’s a planning issue. That’s why our team integrates legal coordination with financial and tax planning to help clients build cohesion across disciplines.
Update Business Valuation and Liquidity Planning
A current, objective business valuation is central to every effective succession plan. Yet many owners go years without updating their valuation, especially when there’s no immediate intent to sell.
Even if a transition is not imminent, understanding the current value of the business helps with:
- Accurate estate planning and gifting strategies
- Life insurance coverage calibration
- Evaluating liquidity needs for future buyouts or family transfers
If 2025 was a year of significant growth or contraction, it’s particularly important to reassess the company’s worth. An updated valuation can also reveal gaps between the owner’s retirement needs and the business’s ability to fund them, opening the door to more strategic financial planning.
Reevaluate Insurance Coverage for Continuity
Many owners rely on life and disability insurance to fund buy-sell agreements, protect against loss of key personnel, or support heirs in the event of premature death. However, insurance is not a “set it and forget it” solution. Policies must be revisited regularly to ensure they align with the current value of the business and structure of the ownership.
Questions to consider before the year ends:
- Are policy death benefits still aligned with updated business valuations?
- Has the ownership of the policy been reviewed for tax efficiency?
- Are key person policies still appropriate, or have roles changed within the business?
Our team at Granite Harbor brings deep experience in life insurance strategies, not just in selecting policies, but in evaluating how those policies work within a broader estate and business continuity plan.
Coordinate with Estate and Tax Planning Strategies
Succession and estate planning are inextricably linked. Many owners intend to pass on ownership to family members as part of their legacy. Others plan to exit entirely. In both cases, tax efficiency and asset protection are paramount.
Heading into 2026, there are several potential tax considerations:
- The current lifetime gift and estate tax exemption is increasing in 2026 through the OBBBA. Starting on January 1, 2026, the baseline is $15 million per individual ($30 million for married couples).
- Owners nearing retirement may benefit from exploring grantor retained annuity trusts (GRATs), intentionally defective grantor trusts (IDGTs), or other advanced gifting strategies tied to business interests.
- Coordinating with a financial advisor who understands both business valuation and personal estate planning can help ensure a more seamless and strategic wealth transfer.
These strategies are often misunderstood or poorly implemented when handled in silos. At Granite Harbor, we take an integrated approach, helping clients align tax, estate, and succession planning in a cohesive framework.
Stress-Test the Continuity Plan
A strong succession plan must function under pressure. It must be executable not only in a controlled transition, but in the event of sudden incapacity, death, or economic downturn. A year-end review should include a stress test of the continuity plan:
- Who is authorized to make operational decisions in the event of incapacity?
- Have contingency plans been communicated to key stakeholders?
- Does the next generation or management team have the leadership capacity and financial support to take over?
Stress testing isn’t about predicting the future; it’s about ensuring flexibility and resilience. We often facilitate these exercises with business owners and their advisors, identifying weak points and building solutions before gaps become liabilities.
Prepare the Next Generation—Professionally and Personally
For owners planning to transfer the business to family members, succession planning must address more than financial structures. It also involves mentoring, role clarity, and shared expectations.
Year-end is an excellent time for:
- Setting goals for the next generation’s development
- Clarifying roles and decision-making authority
- Discussing shared values and long-term vision for the business
We’ve seen firsthand that successful transitions depend as much on emotional readiness and family harmony as they do on tax strategy. The most effective plans bring family members into the process early, and they prioritize transparency over assumption.
A Final Word: Succession Planning Is Ongoing, Not Event-Based
There’s no perfect time to finalize a succession plan. There is a right time to reassess it and that time is now. As you close out 2025, consider succession planning a core part of your year-end review, not a separate or secondary project.
At Granite Harbor Advisors, we help business owners think beyond the numbers. We understand that succession is more than a transaction; it’s a personal and professional transition that impacts your family, your team, and your legacy.
Whether you’re five years from retirement or still growing the business, a thoughtful, up-to-date plan brings clarity, confidence, and continuity. We believe that’s something worth prioritizing as the calendar turns.