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August 24, 2017Why You Should Hire a Certified Exit Planning Advisor
For most business owners, your companies are your babies. Just like your own children, you pour all you can into your company so that when they become independent from your guidance, they can stand on their own. That means when the time comes to step away from your business you can leave knowing it will succeed. One of the best ways to achieve that for a business is to devise an exit plan.
An exit plan is a strategically designed blueprint to sell your business for maximum profit or possibly even to cut your losses. Whichever side of the fence you fall on with your business the best way to achieve exodus is to hire a Certified Exit Planning Advisor (CEPA). They are well-trained individuals that help you formulate the best plan possible. Let’s look at why you should hire a Certified Exit Planning Advisor.
The Value of a CEPA
The professional with a CEPA certification is there to help you make informed decisions about your exit. They ask questions to garner the goals you have in mind, both personally and professionally. Your business has a value, and a CEPA is there to help you determine. Not only will they help you calculate your business value, but they will also even aid in growing that value.
Timing is everything when it comes to selling your business. A CEPA will sit with you and help you decide when is the best time to move forward with selling your business. Their guidance can offer solutions to help you even minimize your tax bill after the sale of your company.
Many advisors, everything from lawyers to brokers, provide some form of exit planning services. They claim to have the knowledge necessary to get you optimal results, but be leery of sales pitches. CEPAs go through an MBA-style program, finished off with a four-hour proctored exam to earn their credentials. If you don’t see the CEPA logo, think long and hard about employing that person to help you attain your exit goals. CEPAs, like Certified Financial Planners™, adhere to the four Es.
- Education
- Examination
- Experience
- Ethics
If your exit planner boasts of these four Es, then they may be a great fit for helping you set up your strategic exit plan.
Setting the Expectations
When you first meet with a CEPA, you can expect them to ask numerous questions. The discussion that comes from your answers will help foster the plan they help you layout. They will begin by first determining what goals you are aiming for personally and with your business. From there the CEPA will look at your financial needs, your business value, your risk tolerance, and the timeframe you have in mind for exiting.
After all of this has been thoroughly examined, they can develop a plan that is tailored to specifically reach your desires. They use a targeted approach that sets them apart from others without the CEPA credentials. They’ll examine the complex issues surrounding the sector of industry your business is part of. The more information you impart to your CEPA, the better the results you can expect to see—for you, your family, and your fortune.
What will a CEPA Charge?
An exit planner’s goal should be to make sure you reach your goals, not just earn a paycheck from you. Compensation comes in several different ways. They may charge hourly, or perhaps they have a flat fee. Whatever the method of payment, a CEPA will provide that information, along with any conflicts of interest they may have, upfront and in writing.
However, do not procure an advisor based on cost alone. Take into account their credentials, the depth of their knowledge, along with their experience, and the processes they use to provide you with an exit plan. If your exit planner is committed to moral excellence and high professional standards, they are likely someone you can trust. Your transition will be well-planned and profitable with the help of someone like that. A CEPA is certainly one you know you can expect those attributes from.
The Future of Your Business
If you’re like most business owners, your business is your life. You don’t want to work forever, and you don’t want to walk away empty-handed. That’s why planning your transition, whether it’s retirement or your next business venture, is so crucial. Work with a CEPA to optimize the outcome you hope to achieve. You’ll be glad you did.
Looking for a trusted CEPA? Schedule a call. We would love to show you just how valuable your business can become.