Exit-Ready? The Five Questions CPA Firms Should Ask Every Business Owner
Why Exit Planning is Advisory Gold for Proactive CPA Firms
For most business owners, the sale of their business is the single largest financial event of their lifetime. Yet far too many approach it with the same urgency as renewing their driver's license—last minute, reactive, and under-informed.
This is where CPA firms, especially those embracing an Integrated Advisory model, can step up not just as tax advisors, but as exit readiness quarterbacks. Helping business owners prepare years in advance positions your firm to deliver transformative value—and retain the client post-exit.
So, how do you start the conversation? With five powerful questions.
1. What Is Your Ideal Exit Timeline—and Why?
This isn’t just about choosing a date. It’s about understanding motivation:
Are they burned out and ready to walk away?
Do they want to stay involved under a buyer’s umbrella?
Is the goal to retire, fund a new venture, or shift wealth to the next generation?
Too often, business owners pick a timeline based on emotion or gut feeling. CPA advisors can help clarify whether the business, financials, and family dynamics are aligned with that goal.
2. Do You Know What Your Business is Worth—and to Whom?
Most owners overestimate the value of their business. Others undervalue it because they lack visibility into industry-specific multiples, buyer profiles, or EBITDA normalization.
CPA firms can introduce preliminary valuations or connect with specialists to inform decision-making. Understanding value also helps shape:
Tax minimization strategies
Family succession plans
Insurance and contingency planning
Deal structure scenarios
3. Have You Purified the Business to Maximize LCGE and Sale Readiness?
In Canada, owners may qualify for the Lifetime Capital Gains Exemption (LCGE)— $1.25M per shareholder in tax-free capital gains—if their business qualifies as a Qualified Small Business Corporation (QSBC).
But excess cash, investment assets, or shareholder loans can contaminate qualification. CPA firms must review and "purify" corporate structures at least 2–3 years before a planned exit.
4. What Happens if Something Happens to You?
Even with a 10-year exit plan, life happens. Divorce. Disability. Death.
CPAs must ask:
Is there a shareholder agreement?
Do you have key person insurance or a funded buy-sell plan?
Who can run the business in your absence?
Advisory-ready firms collaborate with legal and insurance professionals to close these risk gaps early. These are not just compliance questions—they’re trust-building discussions.
5. Who’s Advising You Outside of Tax Season?
Ask this, and you’ll uncover:
Gaps in the client’s advisory bench (or overlap)
Whether they have a wealth manager, business broker, corporate lawyer, or just “a friend who sold once”
A chance to position your firm as the long-term integrator of strategy and execution
CPA firms that offer Integrated Advisory—connecting the dots between tax, estate, investment, and business strategy—can become the most indispensable advisor at the table.
Conclusion: Exit Planning is Not a Transaction—It’s a Journey
The most successful exits don’t start with a letter of intent—they start with clarity, structure, and a multi-year roadmap. CPA firms are ideally positioned to initiate that journey, long before a deal is on the table.
When you ask these five questions, you demonstrate value beyond compliance. You guide, you lead, and you transform the conversation from tax to trajectory.
