Business Exit Transitions for CPA Financial Planners

Host Cary Sinnett and business transition advisor Mike Benedict discuss how to prepare business owners for one of their largest lifetime transactions—exiting their business. The conversation covers key aspects of pre-transaction preparation, valuation methods, building a sell-ready business, and leveraging tax strategies to maximize outcomes.

Key Insights

1. Pre-Transaction Preparation:
   Use a thorough quality of earnings review—similar to staging a home—to highlight strengths and avoid surprises during due diligence.
2. Integrated Planning:
   Blend exit strategies with overall financial and estate planning to manage tax implications and valuation challenges seamlessly.
3. Realistic Valuation:
   Rely on recast financials and market comparable to determine a fair, median value that avoids skew from outlier offers.
4. Sell-Ready Business:
   Aim for a business that operates independently, with strong margins and a robust management team, to attract quality buyers.
5. Strategic Tax Optimization:
   Apply targeted tax strategies and leverage specific IRS elections to minimize capital gains and enhance the net proceeds from a sale.

Access resources related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit Libsyn (PFP) to access show notes with direct links.

• Guide: The Adviser’s Guide to Financial & Estate Planning – 15th Ed
• Podcast: Building business owner wealth with tax advantaged plans
• Podcast: Deeper CPA financial planner connections with Mackey McNeill

This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy, and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/pfp to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program.

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