What's the actual difference between succession planning and exit planning?

Succession planning can happen entirely within a family or ownership group, without any change in who owns the business, focused purely on developing and installing the next generation of leadership.

Exit planning is broader and often involves an eventual change in ownership itself, whether that's a sale to a third party, a transfer to family, or an internal buyout, along with all the tax and financial planning that comes with it.

Confusing the two often means solving only half the problem: a business with a strong successor in place but no actual plan for the owner's exit, or an exit plan with no one ready to lead once the current owner is gone.