One of the most important conversations a CPA can start

By Mark Grubbs, MBA, WestPac Wealth Partners

How proactive exit planning deepens client relationships and strengthens firm value

In my work with business owners and the CPAs who serve them, I’ve witnessed a consistent pattern: owners tend to delay exit and succession planning far longer than they should, and CPAs often become the first professional they turn to when the need becomes  urgent. Sometimes that urgency is triggered by fatigue, sometimes by market conditions, sometimes by health, and far too often by an unsolicited offer from a prospective buyer.

Yet by the time owners “feel ready,” their options may be limited, their business value may be flat, and tax-efficient pathways may have narrowed. What becomes clear in these moments is that CPAs are uniquely positioned to guide owners earlier and more effectively, long before a deal is on the horizon.

Through years of closely collaborating with CPAs, I’ve come to see exit planning not merely as a specialty service, but as a natural extension of the work CPAs already do. Owners trust their CPAs with their most sensitive financial information; they look to them for clarity, objectivity, and technical insight; and they rely on them to understand how today’s decisions affect tomorrow’s outcomes.

What follows is a synthesis of the strategic insights I’ve gathered in working alongside practitioners who help owners navigate the most important transition of their financial lives.

Why exit and succession planning is becoming a core CPA responsibility

Owners increasingly expect guidance that extends beyond compliance. They want to understand how tax strategy influences their eventual sale, how the reliability of their financial statements affects valuation, and how their compensation and staffing decisions shape the long-term transferability of the business.

Owners typically begin thinking about their exit emotionally by imagining life beyond the company or wondering whether they can afford retirement. But the path to a  successful transition is entirely financial, and CPAs are positioned to interpret that financial reality.

When these conversations begin, owners naturally turn to their CPAs to help them evaluate business value, assess retirement readiness, understand tax exposure, and compare the implications of different transition pathways. CPAs are uniquely equipped to turn an owner’s personal goals into measurable financial benchmarks.

Economic and tax headwinds: Why owners need CPA leadership

A broader look at the economic landscape helps explain why owners require more structured guidance than ever. Economic growth over the past two decades has slowed compared with prior generations. Tax exposure on business sales can be materially higher. Long-term investment returns are often lower than owners assumed. Together, these conditions can stretch the timeline required to reach financial independence.

This environment creates a profound need for intentional value creation rather than relying on passive market appreciation. CPAs become indispensable guides in this process, helping owners interpret new tax law, understand reinvestment decisions, and see how each year’s financial performance influences their long-term exit trajectory. Without this support, owners often misjudge how long it will take to exit on favorable terms.

A practical framework for CPAs: A structured exit planning process

A structured exit planning process aligns naturally with the work CPAs already do. While various models exist, they all begin with clarifying the owner’s objectives: When do they want to exit? What income do they need to support their future lifestyle? Whom do they see as a successor?

Once objectives are defined, the next step is determining the resources available to achieve them. CPAs are central to assessing business value, modeling cash flows, and estimating tax liability.

The focus then shifts to increasing transferable business value. Improvements in margin performance, financial controls, management depth, and forecast reliability often have the greatest impact on value and CPAs are instrumental in helping owners quantify these improvements.

Transition mechanics follow whether the owner intends to sell to a third party, transfer to employees, or keep the business in the family. Each pathway introduces unique tax implications and deal structures that require CPA interpretation.

The final stage involves continuity planning to help protect the owner, the family, and the business from unexpected events. These strategies depend on accurate financial projections and effective coordination among the owner’s advisory team, another area where CPAs naturally lead.

The value drivers that matter most to buyers

Buyers consistently evaluate the same characteristics when determining business value: stable earnings, predictable cash flow, strong financial controls, a capable and committed management team, diversified revenue, and credible growth potential.

Nearly all these elements ultimately reflect themselves in the financial statements. Strong operations yield stable margins. Detailed controls demonstrate discipline. Reduced owner dependency shows the business can thrive independently. These factors significantly influence valuation multiples.

CPAs help owners understand how these characteristics appear in the financials and what steps can be taken to improve them long before the sale of the business becomes imminent. This proactive guidance gives owners the opportunity to increase transferable value in a meaningful way.

Key employees: The often-overlooked foundation of transferable value

In many cases, the strength of the management team determines whether a buyer views the company as attractive or risky. A business that depends heavily on the owner may struggle to command a strong valuation, while a business with a proven leadership team is often far more desirable.

Through collaborative work with CPAs and owners, I’ve seen how critical employee incentive planning becomes in these situations. Incentive plans can retain key employees, align their motivation with long-term company goals, and create shared purpose during transition.

Because the feasibility of incentive plans must be assessed through cash flow and profitability, CPAs help determine whether a plan is sustainable, how it affects the tax posture of the business, and whether its structure meaningfully contributes to value creation.

Transfers to key employees: A complex transaction requiring CPA guidance

Many owners hope to sell their company to the employees who helped build it. However, key employees rarely have the capital required to purchase the business outright, and lenders often require strong collateral and consistent earnings before supporting the transaction.

These transfers typically rely on creative structures such as long-term installment payments, deferred compensation mechanisms, or a blend of seller financing and external funding. Their success depends almost entirely on future cash flow, making CPA modeling indispensable.

The CPA becomes the professional who determines whether the company can sustain the purchase obligations, evaluates structure, and helps ensure financial stability for both the owner and the employees.

Family business transfers: A path filled with complexity and emotion

Family transitions often involve a complex mixture of financial objectives and emotional dynamics. Parents want fairness among children, clarity around ownership, and assurance that the business will be stewarded well. Successors want opportunity, responsibility, and the ability to make changes.

CPAs bring essential clarity to this process. They help determine whether the business can support the owner’s retirement, evaluate successor readiness, quantify fairness issues, and align estate and business planning.

When guided properly, family transitions can preserve both the business and family harmony. Handled poorly, they risk undermining both.

Deal pitfalls: How CPAs protect owners from value-destroying mistakes

Many deals fail due to issues that could have been prevented, such as inconsistent financials, inadequate preparation for due diligence, or a lack of clarity when negotiating terms. CPAs prevent these pitfalls by preparing normalized financials, offering objective analysis, and helping owners understand how each decision affects cash flow, taxes, and long-term outcomes.

Their involvement often determines whether a deal closes successfully, stalls, or collapses.

Collaboration supports planning

Across the profession, CPAs are being asked to do more than ever before. Clients expect sophisticated tax mitigation, retirement modeling, business continuity guidance, key-employee incentive insight, and a reliable plan for transitioning the largest asset they own. Meanwhile, CPAs face growing workloads, industry-wide staffing shortages, and heightened client expectations driven by technology and transparency.

The irony is that CPAs remain the most trusted advisor in a business owner’s financial life, yet they are also the professionals most stretched by competing demands.

Many CPA firms are embracing a team-based advisory model, providing structured support behind the CPA, allowing them to expand their influence as the central advisor without expanding their workload.

When CPAs partner with specialists who reinforce their work, not compete with it, clients become more organized, better prepared, and more responsive. Conversations become more strategic. Tax seasons become smoother. And the CPA can step into a leadership role during the transition process without carrying the entire burden.

Conclusion: CPAs are the linchpin of every successful exit

Across countless engagements, one truth stands out: the success of a business transition depends heavily on the CPA. Not because CPAs must execute every step of the planning process, but because every transition is driven by numbers: cash flow, valuation, tax structure, and financial readiness.

When CPAs take a leadership role, supported by coordinated resources and collaborative professionals, owners gain clarity, confidence, and control over their future. The CPA 
client relationship grows deeper, the firm’s value increases, and the business owner is guided through one of the most meaningful financial events of their life.

Business owners will leave their companies one way or another. CPAs have an extraordinary opportunity to help ensure they exit intentionally, successfully, and with the best
possible financial outcome.

Mark Grubbs is a Certified Exit Planner with WestPac Wealth Partners in Lake Oswego, Oregon. He works closely with CPAs to support exit and succession planning through a collaborative, team-based advisory model that reinforces the CPA’s role as the client’s primary advisor. CPAs who would like to explore how structured planning support can  complement their existing advisory work may contact Mark’s business development manager at Ryan.Myers@WestPacWealth. com or call (503) 349-0439.

Mark Grubbs is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Westpac Wealth Partners LLC is not an affiliate or subsidiary of PAS or Guardian. Insurance products offered through WestPac Wealth Partners and Insurance Services, LLC, a DBA of WestPac Wealth Partners, LLC. CA Insurance License #1541031 | Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. | 2026-161213 Exp. 01/27 | Oregon Society of CPAs is not affiliates or subsidiaries of PAS or Guardian.