One of the main challenges business owners face when exiting a business is the stress of the process itself. This gets more complicated when unexpected challenges pop up. A certified exit planning advisor can help make the entire process smooth and seamless. So, what is a certified exit planning advisor? We’ll tell you exactly what they do.

What Is a Certified Exit Planning Advisor?

An exit planner, or a certified exit planning advisor (CEPA), plays an important role in guiding you through exiting your business. Initially, their expertise aids in determining the actual value of your company, which is foundational for a successful exit strategy. They meticulously assess your business’s assets, market position, and potential cash flow, ensuring an approach tailored to your unique situation.

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What Does an Exit Planner Do?

CEPAs help owners increase the value of their business, align the owner’s personal goals with their business strategy, and plan for a future transition. Their key responsibilities include but are not limited to:

Exit planning involves numerous legal and tax considerations. CEPAs collaborate with attorneys and tax advisors to structure the sale or transfer to minimize tax liabilities and comply with legal requirements. This might include setting up trusts, crafting buy-sell agreements, ensuring utility patent management, and navigating estate planning issues.

Their responsibilities extend to orchestrating a seamless transition. By prioritizing your financial security and the continuity of the business post-departure, they work to match you with a suitable successor or buyer. More importantly, an exit planner helps safeguard your company’s core values, aiming to maintain its ethos after you leave.

The Exit Planning Process

In your journey as a business owner, defining a solid exit strategy is vital to assure you can transition out of your company while maximizing its value and aligning with your financial and personal objectives.

To secure your future, especially in retirement, exit planners help align the exit outcomes with your financial aspirations, whether that includes a significant one-time profit or a steady post-exit income. They will also draft a communication strategy to keep employees, investors, and stakeholders informed and prepared for future changes.

Considering the complexity of tax implications and legal proceedings during such transitions, an exit planner walks you through these procedures. With their help, you can focus on your business, knowing that a strategic exit plan is in place, built on solid financial ground, for the moment you decide to move on.

What Is an Exit Plan?

An exit plan is a comprehensive roadmap designed to help you, the business owner, successfully exit a privately held business. It encompasses aspects of the transition, whether a sale, merger, or legacy succession. The plan addresses the strategic business elements and your personal and financial goals, ensuring that stakeholders’ interests are accounted for.

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The components of planning an exit include:

  1. Business valuation: Understanding what your business is worth is a starting point for any exit strategy.
  2. Improvement strategies: Identifying key areas within your business that can be improved to increase its market value.
  3. Succession planning: Laying out a clear plan for a leadership transition, which may involve grooming an internal successor or seeking an external candidate.
  4. Financial planning: Aligning the exit with your personal financial goals to secure your post-exit future.
  5. Estate planning: Ensuring your personal assets are distributed according to your wishes.

Each component is vital in creating a detailed plan that considers personal and business objectives.

Furthermore, at the heart of planning an exit is the Value Acceleration Methodology. This strategy focuses on ways to amplify the value of your business before the transition. The methodology is a three-phase approach:

Adopting this methodology could lead to a maximized business value supporting your desired financial future and personal goals.

Key Entities in Exit Planning

As you approach exit planning, it’s critical to understand the role of various professionals and institutions that facilitate a seamless transition.

Collaborating With Professional Advisors

Your exit planning team is usually a multidisciplinary group of professionals who bring their specialized skills to the table. This team commonly includes your financial advisor, ensuring your financial goals are met post-exit. 

They work closely with accountants and CPAs who assure financial reporting and tax considerations align with exit objectives. Attorneys and legal professionals protect your legal interests and help mitigate risks. 

The team’s muscle might involve business brokers and consultants, who can tackle the sales process or find potential buyers. Finally, estate planners become invaluable when the need to manage personal and business wealth distribution arises.

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Involvement of Financial Institutions

Financial institutions, especially banks, play a vital role in planning an exit, primarily by providing liquidity solutions or facilitating the transfer of assets. Bankers may offer loans to potential buyers or structure deals that can finance the exit. 

These institutions might work with your company’s financial advisors and other professional advisors to evaluate the business’s value and assure accurate financial representations throughout the transaction process. 

Maintaining transparent relationships with these entities is important as they are integral to the smooth execution of your exit plan. Having an issue on the finance front can stall the entire process, particularly since everything must be in order before you eventually bow out. 

Exiting the Business

Exiting your business, whether through a sale or succession, requires careful planning to assure you maximize business value and facilitate a smooth transition. It’s a multifaceted process that involves developing an exit strategy, accurately valuing the business, and ensuring its transferable value to appeal to potential buyers or successors.

Preparing for the Sale or Succession

You must first develop a comprehensive exit strategy to prepare your business for sale or succession. This roadmap should align with your personal and financial goals, as orchestrated by a CEPA. 

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The strategy will involve a thorough business valuation, vital for setting a fair price and understanding the business value. A CEPA, certified by the Exit Planning Institute (EPI), is trained to evaluate aspects of your company, not just its financials, to maximize the transferable value to new owners. The exit process usually starts with:

Transferring Ownership and Maintaining Continuity

Once you’ve prepared for the sale or succession, the focus shifts to transferring ownership and maintaining continuity. A seamless transition is vital for preserving the enterprise value and keeping the staff and customers confident in the change. You should work closely with a CEPA to help negotiate terms that protect your interests and that of the remaining stakeholders.

The objective is to secure the financial proceeds you deserve when selling your business while also setting the stage for future success under new ownership, whether it’s private equity, family members, or another entity interested in maintaining your enterprise’s legacy. 

With proper guidance from a CEPA and your business transition team, you can move forward confidently toward new opportunities while knowing your business is in good hands.

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Related Questions

Why Should You Consider Hiring a CEPA?

Hiring a CEPA can be beneficial if you’re looking to maximize the value of your business and assure a seamless transition when you decide to exit, whether through sale, succession, or other exit strategies. They also use strategies like the Value Acceleration Methodology to help increase your company’s value.

How Do You Become a CEPA?

To become a CEPA, you must complete an MBA-style program focusing on exit planning and pass a proctored exam. Further details about the program itinerary and exam process can be found at the Exit Planning Institute. A CEPA assists you in developing a comprehensive strategy for exiting your business. This includes aligning your personal, financial, and business goals to assure a smooth transition.

When Should Exit Planning Start?

Ideally, beginning the process three to five years before your intended exit is recommended for ample preparation. Initiating exit planning should be considered a proactive measure, not a last-minute decision. Starting early lets you articulate and refine your personal and financial goals thoroughly.


A Certified Exit Planning Advisor, or CEPA, is equipped with specific skills and methodologies, such as the Value Acceleration Methodology, to guide business owners through an exit. Bringing in a CEPA as you start planning your exit ensures that your exit from the company reflects its true worth and harmonizes with your long-term personal objectives.