Why Exit Planning Should Be on Every CPA Firm’s Radar
Exit planning is quickly becoming a high-impact advisory opportunity for CPAs. While many business owners know they will eventually exit, few are truly prepared, and CPAs are ideally positioned to close that gap through trusted relationships and financial insight.
By Daniel Hurtado, CPA, CMSBB
The accounting profession is changing. Compliance work still matters, but the most forward-looking firms are rethinking what it means to serve business owners. Exit planning is quietly emerging as a critical area where CPAs can lead, not by chasing the transaction, but by helping clients prepare for this transition years in advance.
Recent findings from the Exit Planning Institute’s State of Owner Readiness Survey reveal that more business owners are beginning to understand the importance of planning their exit. But awareness is not the same as preparedness. Most owners still do not have a clear roadmap or the right support to turn that awareness into action.
That is where CPAs come in. We already have the access, the trust and the financial insight. What is needed now is a shift in how we see our role.
Exit planning is not just another service offering; it is a way of engaging clients earlier, asking better questions and building long-term value for them beyond simply providing expertise in the area of tax compliance.
Why Exit Planning Belongs in the CPA Wheelhouse
When a client starts thinking about retirement or a potential sale, the process is rarely just financial. It is personal, emotional and complex. It touches everything from tax planning to succession to lifestyle goals. As CPAs, we are often the only advisor with a long-term view of the business and the only one in a position to connect the dots across different domains.
But stepping into this role means thinking differently. Exit planning is not a compliance exercise. It is a strategic discipline. It requires us to work across silos, lead conversations about value, risk and timing, and become comfortable working alongside attorneys, wealth managers, M&A advisors, and other professionals.
The Timing is Real
The numbers are hard to ignore. A significant percentage of privately held businesses in the U.S. are owned by baby boomers. As that generation continues to retire, trillions in business value will be transferred, through sale of the business, sale, succession, or in some unfortunate cases, liquidation.
At the same time, younger founders, especially Millennials and Gen Z, are taking a more intentional view of their exits. Many are building with the end in mind, and they expect their advisors to understand deal dynamics, buyer expectations and how to structure a business for long-term appeal.
Firms that can speak that language and show a path forward will be far better positioned to retain and grow these relationships.
Beyond the Transaction: Why It Matters Long Before the Sale
Exit planning is not only about maximizing the sale price. Done correctly, it allows CPAs to expand their role, shifting from reactive support to ongoing strategic counsel. It turns once-a-year conversations into multi-year advisory relationships that touch on:
- Business valuation and benchmarking
- Operational and leadership readiness
- Tax and entity structuring
- Wealth and estate planning
- Post-sale transition support
In practice, we have seen firms that lead exit planning engagements unlock significant downstream work. For many, every dollar billed on exit planning leads to 10 to 20 times that in related services.
Practical Steps for CPA Firms to Get Started
You do not need to transform your entire practice to begin offering exit planning services, but it does require a focused approach. Here are some steps to consider:
1. Invest in the Right Education. Consider earning the Certified Exit Planning Advisor (CEPA) credential, offered by the Exit Planning Institute. This program gives you a practical framework to advise business owners on how to prepare for and improve the outcome of their eventual exit. It also introduces tools and language that help position you as a strategic advisor beyond tax and compliance.
2. Identify the Right Clients and Start the Conversation. Look through your current client list for business owners over 50 years of age or those who have mentioned retirement, succession or interest from potential buyers. These clients are ideal candidates for an exit planning discussion. Start with those with whom you already have a strong relationship. Frame the conversation around improving business value and long-term readiness, not just preparing for a sale.
3. Build a Strong Referral Network. Exit planning touches on many disciplines. You do not need to deliver every component yourself, but you do need trusted partners. Build relationships with M&A advisors, valuation professionals, estate planning attorneys and others who can complement your role. As the CPA, you are in a strong position to lead and coordinate these efforts on behalf of the client.
A New Role for the CPA
We are seeing a shift in how clients view their CPAs. It is no longer just about tax preparation or compliance. Business owners are looking for someone who understands how the business supports their long-term goals and who can guide them through important transitions, including how and when they will eventually exit their business. That role is available to CPAs who are willing to take a more proactive approach. But timing is critical.
By the time a business owner decides to sell, many of the decisions that shape value have already been made. Lifestyle choices are embedded in the tax returns. Financials may be inconsistent or overly tailored to minimize taxes. These factors often reduce the perceived value of the business and make it harder to command a strong offer.
Starting the conversation one to three years in advance gives you time to work with the client to improve the fundamentals. You can help them clean up the financials, highlight value drivers and address areas of risk. Even modest changes during this window can make a significant difference in how the business is positioned and priced when it goes to market.
As their most trusted advisor, you are in the best position to lead that conversation. You can help your clients understand what drives business value, where they may be leaving money on the table and how to align the business with their future goals.
Every one of your business-owner clients will leave their business someday. The opportunity to shape that outcome starts now. Identify one client. Begin one conversation. With each step, exit planning can become a meaningful and valuable part of your work.
Business problem solved: CPA firms can risk becoming commoditized as compliance work plateaus, while business owners approach their exits unprepared and lose value. Exit planning helps CPAs move upstream by engaging clients earlier, deepening relationships and delivering higher-value advisory services while improving client outcomes long before a sale. |
About the Author: Daniel Hurtado is a CPA and Certified Mergers & Acquisitions Advisor with 30 years of experience serving privately held companies. As the owner of a Texas-based brokerage office with Sunbelt Business Brokers, he specializes in guiding business owners through exit planning and transaction execution. He partners closely with CPA firms to deliver value-driven advisory services across the small and middle market, helping clients prepare for, navigate and maximize their business transitions.
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