Page 16 - GBC summer English 2025

Succession Planning Checklist
• Determine your timeline(s)
• Align on long-term vision
• Complete an indication of value
• Identify potential successors
• Develop a business plan
• Implement and monitor
• Transition or transact
PROS:
•  Cash Flow Considerations – Of-
ten times the transaction will be
structured such that the seller re-
ceives the majority, or all of the
funds from the buyer upfront.
This supports personal financial
planning and protects against
any future economic downturns
that could impact the exit time-
line and valuation in the future.
•  Shorter Exit Timelines – Most
third-party buyers look to close
transactions within a shorter time-
line.
DEVELOP AND MONITOR YOUR SUCCESSION PLAN
Once you have clarified your vision, completed a valuation, and identified
your preferred successor, the next step is developing a detailed business
plan to support your succession plan. This plan should align with your
exit timeline, improve operational readiness, and maximize business
value. It might include actions, such as:
CONS:
•  Losing Connection – In most sit-
uations, your involvement in the
management of the business will
end upon the closing of the
transaction. Often, some form of
connection (i.e., lifetime mem-
bership) can be negotiated as
part of the transaction.
•  Legacy – A sale to a third-party
would result in the least control
over the future legacy of the busi-
ness post transaction. Certain
conditions can be negotiated
through the transaction process,
such as continuing operations as
a golf course for a select number
of years, however, control over
decisions on how to run the busi-
ness is often fully ceded to the
new ownership.
Ultimately, each succession
option has pros and cons. Weighing
the availability of potential
successors as well as how these
considerations could impact and/
or align with your long-term
vision, financial planning, and
desire for continued connection to
the business will provide clear
direction towards planning for the
best successor(s).
• Modernizing internal systems and procedures
• Adjusting pricing or membership strategies to boost performance
• Identifying local market risks and opportunities
This plan should include scenario and sensitivity analysis to help
guide decisions and prepare for uncertainty. However, planning is only
half the battle. Successful implementation requires regular monitoring
and accountability. Be sure that you have developed a timeline with clear
milestones, assigned performance metrics and responsibilities, and track
progress against key indicators.
This plan becomes your operational roadmap – not only through the
transition, but potentially well beyond. The goal is to ensure business
continuity, maximize value, and honour your long-term vision.
MAKING THE TRANSITION COUNT
A well-crafted succession plan can be the difference between a smooth
transition and a missed opportunity. Planning ahead and gathering the
required information, both internally and externally, positions you to
reduce risk and maximize value. Circumstances may change, but a strong
plan gives you the flexibility to adjust with confidence and clarity.
GGA Partners would like to thank the following co-authors for
their expertise and collaboration in writing this article:
Craig Johnston, CPA, CA (Managing Director & Partner)
craig.johnston@ggapartners.com
Stephen Johnston, CPA, CA (Founding Partner)
stephen.johnston@ggapartners.com
Glen Dowbiggin (Director) glen.dowbiggin@ggapartners.com
Evan Van Eerd, CPA (Director) evan.vaneerd@ggapartners.com
Sam Dinsmore (Manager) – sam.dinsmore@ggapartners.com
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B Bu usi sin ness ess
Canad Canada a
Footnotes:
1 The 26.4% increase was calculated using NGCOA Canada’s year-to-date rounds played data as of October 2019 and October 2024. October is the final month of rounds report-
ing across the country.
2 National Allied Golf Associations, Golf in Canada Economic Impact Study 2023, page 15,
https://af8ce3ee-4e65-41de-9472-b9d182470a1a.filesusr.com/ugd/b625ef_eaf582bee3ca46b2a47c7ebbea6fa4dc.pdf
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