How Business Owners May Benefit from Working With a CEPA

How Business Owners May Benefit from Working With a CEPA

June 01, 2024

If you own a business, there are many decisions to make on a day-to-day basis. But, when it comes to selling your business, transferring it to key employees or family members, or retiring, planning can often become more complex. It is essential for business owners to have an exit plan as they transition to the next phase of life. That’s where a financial professional with the Certified Exit Planning Advisor (CEPA) designation can help business owners prepare for a smooth transition.

CEPA's are financial professionals that specialize in helping business owners with their unique situations. Prerequisites to become a CEPA include:

  • Five or more years of full-time or equivalent experience working directly with business owners
  • Undergraduate degree from a qualifying institution
  • Exit Planning Institute member in good standing
  • Five-day educational program
  • Pass a final CEPA exam
  • Take 40 hours of continuing education every three years

During exit planning, CEPAs help the business owner build a stronger and more profitable company to prepare them for the sale. They also create financial plans for the business and owner and align the future transition to the owner’s goals. CEPAs also examine the business industry, the owner’s tolerance for risk, the business operations, and possible tax consequences. This strategy helps the owner decide the optimal time to sell.

There is a lot of planning often over multiple years as the owner prepares to sell at some undetermined point in the future. Other critical areas of focus the CEPA specializes in include:

  • Value acceleration methodology
  • Estate planning
  • Private equity
  • Charitable intent
  • Key employee insurance and benefits planning

If you're a business owner wondering how to prepare to sell your business, you may benefit from working with a CEPA. However, suppose you're not ready to sell. In that case, you can benefit from working with a CEPA since they are often also financial professionals specializing in financial and tax planning for individuals with unique situations.

Sources:

https://smartasset.com/financial-advisor/certified-exit-planning-advisor

https://www.finra.org/investors/professional-designations/cepa

 

Important Disclosures

Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by Fresh Finance.

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