Exit Planning is Advisory Gold: Five Questions Every CPA Should Ask Business Owners

For many Canadian business owners, selling or transitioning a business is the single largest financial event of their lives. Yet, too often, these decisions are approached reactively; without clarity, planning, or guidance. This is where CPA firms, particularly those embracing the Integrated Advisory™ model, can step in as strategic partners. By guiding business owners through exit planning, CPAs can unlock significant value while simultaneously deepening long-term client relationships. 

Why Exit Planning Matters Now More Than Ever 

According to the Canadian Federation of Independent Business (CFIB), over 2 trillion CAD in business assets are expected to change hands in Canada within the next decade. Alarmingly, only a small fraction of these owners have formal succession plans in place. This gap highlights an opportunity for CPAs to act as coordinators, ensuring both business and personal objectives are met. 

Far beyond preparing tax filings, exit planning positions the CPA as a trusted advisor: orchestrating tax strategies, family succession, estate planning, and risk management, all while aligning with the owner’s goals. 

The Five Key Questions Every CPA Should Ask 

• What Is Your Ideal Exit Timeline—and Why? 
  Understanding the motivation behind an exit is essential. Are owners seeking retirement, funding a new venture, or stepping back due to burnout? CPAs can help align the timeline with business readiness, family considerations, and financial objectives, ensuring that the plan is strategic rather than reactive. 

• Do You Know What Your Business is Worth—and to Whom? 
  Many owners misjudge the value of their businesses. CPAs can help by facilitating preliminary valuations or connecting clients with specialists. Understanding value allows for informed decisions regarding deal structure, tax planning, and succession strategies. 

• Have You Purified the Business to Maximize the Lifetime Capital Gains Exemption (LCGE)? 
  In Canada, eligible business owners can shelter up to $1.25 million CAD in capital gains per shareholder through the LCGE. To qualify, businesses must meet specific criteria, such as the 90% Active Business Asset Test. Excess cash, investment properties, or shareholder loans can “contaminate” eligibility. CPAs play a critical role in guiding purification strategies years in advance, safeguarding this valuable exemption. 

• What Happens if Something Unexpected Occurs? 
  Even with a clear exit plan, life can introduce disruptions: disability, divorce, or death. CPAs can facilitate risk planning by reviewing shareholder agreements, key-person insurance, or buy-sell arrangements. Addressing these contingencies early protects the business and the owner’s financial legacy. 

• Who Is Advising You Outside of Tax Season? 
  Asking this question often reveals gaps or overlaps in the client’s advisory network. Many owners rely on fragmented advice—from lawyers, wealth managers, or friends. CPAs can position themselves as the integrator, coordinating legal, insurance, and investment strategies to create a unified exit plan and long-term advisory relationship. 

From Transactional to Transformational Advisory 

Exit planning is a journey. Proactive engagement allows CPAs to guide business owners through: 

• Strategic Business Structuring: Aligning corporate and personal financial objectives for optimal outcomes. 

• Tax Optimization: Implementing LCGE and other tax-efficient strategies to preserve wealth. 

• Succession Planning: Coordinating with heirs or potential buyers to ensure smooth transitions. 

• Integrated Advisory: Leveraging cross-disciplinary expertise to cover legal, insurance, and investment aspects, all orchestrated by the CPA. 

By embedding exit planning into an ongoing advisory model, CPAs transition from compliance specialists to long-term, trusted partners, expanding revenue opportunities while solidifying client loyalty. 

Technology and Advisory Readiness 

Modern tools enhance exit planning efficiency. Financial modeling software, AI-driven projections, and scenario simulations allow CPAs to visualize multiple exit strategies, forecast tax impacts, and evaluate risk. Coupled with the Integrated Advisory™ framework, these tools enable proactive, high-value conversations rather than reactive responses at the point of sale. 

Why CPAs Are Positioned to Lead 

Canadian CPAs already hold a comprehensive view of their clients’ business and personal finances. By adopting an advisory-first approach, they are uniquely qualified to: 

• Integrate tax, investment, and estate planning considerations into a cohesive exit plan. 

• Bridge communication gaps between owners, heirs, and stakeholders. 

• Deliver actionable insights that optimize financial outcomes while preserving family or business legacies. 

This strategic positioning allows firms to differentiate themselves in a market where transactional services are increasingly commoditized. Exit planning becomes a gateway to broader, integrated advisory engagements, enhancing both client satisfaction and firm growth. 

Unlocking Advisory Gold 

Exit planning represents one of the most valuable opportunities for Canadian CPA firms. By asking the right questions, proactively planning, and integrating cross-disciplinary expertise, CPAs transform a high-stakes business event into a structured, optimized process. This not only maximizes client outcomes but positions the firm as a trusted strategic partner for life. 

The key takeaway is clear: exit planning is not just a service; it is advisory gold. CPAs who embrace this approach can guide clients confidently, protect wealth, and elevate their advisory practice to the next level. The opportunity is here, and the firms that act now will secure enduring relevance in a competitive market.