Business owners embarking on their exit planning journey face a maze of financial, business, and personal decisions, each with the potential to either build lasting wealth or undermine decades of hard work.
Working through this process requires deep expertise, backed by the correct credentials. So, which certifications equip exit planners to guide their clients through every twist and turn of a successful transition?
Certified Exit Planning Advisor
The ultimate certification for any exit planning professional is the Certified Exit Planning Advisor (CEPA®) designation. Earned through the CEPA credentialing program, a five-day course taught by the Exit Planning Institute®’s (EPI’s) best-in-class faculty, the CEPA designation positions you, the advisor, as an expert in value creation and exit planning strategy.
No matter your current credentials, earning a CEPA can help connect them, making you better equipped to serve your business owner clients and create significant companies. The CEPA designation, in concert with any of the certifications you will read about below, gives you a solid foundation for becoming the best exit planning professional you can be.
Top Financial Certifications
Financials are the foundation of effective exit planning, especially when complex transitions require crucial investment, tax, and estate decisions for business owners.
These credentials ensure that an exit planner remains current and credible as they navigate the constantly changing regulatory and market environment.
If you’re a financial professional looking to get involved in the exit planning community, you’ve almost certainly heard of the Certified Financial Planner (CFP®) certification. A CFP helps establish you as an expert in financial planning, enabling you to assist clients in various areas, including risk management, investment planning, tax planning, and estate planning.
An additional benefit of holding both a CFP certification and a CEPA credential is that you can earn continuing education for both through several EPI Academy courses. So, you can actively build your exit planning knowledge while keeping both of your top credentials up to date.
Another notable financial certification that someone in the exit planning community might consider is the Chartered Financial Analyst (CFA®) certification. Similar to the Certified Financial Planner certification, a CFA is an expert in investment, asset, and risk management. The major difference between a CFP and a CFA lies in the job titles they may hold, with CFPs typically serving as wealth managers and financial planners, and CFAs commonly working as financial analysts and portfolio managers.
Top Business Owner-Centric Certifications
Understanding the perspective of business owners is crucial for creating and implementing effective exit planning strategies. Certifications that center on business operations and valuation equip exit planners with the tools needed to bridge the gap between strategy on paper and real outcomes.
A useful certification for building the business leg of the stool is the Certified Business Intermediary® (CBI) certification. The CBI certification boosts the knowledge you gained during the CEPA program, including how to recast financial statements and how to identify the actual value of a business successfully.
This certification, along with your CEPA designation, can help you identify the Value Gap, a key factor in initiating the exit planning process through the Value Acceleration Methodology™. Once a business owner understands their Value Gap, they can start making changes that lead their company toward becoming best-in-class.
A More Personal Touch
The most underdeveloped leg of the exit planning stool is the personal leg, and that falls on both the business owner and the advisor. It’s easy for a business owner to neglect their personal plan, instead focusing on creating financial value in their business. It’s also easy for an advisor to exclusively focus on driving financial value while putting the business owner’s personal planning on the back burner.
While earning your CEPA and building upon that knowledge by utilizing courses offered through EPI Academy will give you a solid baseline knowledge about helping to build out your client's personal plan, the Family Enterprise Advisor (FEA) certification can help provide a deeper dive into strategies that can help both flesh out the personal leg of the stool, but navigate any complex issues that arise during this deeply personal process.
An FEA could be beneficial if you’re a CEPA working with a business that is undergoing a family transfer. CEPAs who are accountants, lawyers, or wealth advisors seeking to expand their expertise in working with family-owned companies may also benefit from earning this certification.
By earning these certifications, CEPAs can expand their knowledge of managing the financial, business, and personal aspects of a business owner’s exit. If you’re looking to advance your advisory career, collecting the proper credentials enables you to offer more value to business owners as they prepare for their future.
Related Resources
About CEPA
The Certified Exit Planning Advisor (CEPA®) credential is for professional advisors who want to effectively engage more business owners. Through the process of Exit Planning (the Value Acceleration Methodology™), owners can build more valuable companies, have stronger personal financial plans, and align their personal goals. Earning CEPA doesn't change your expertise; it enhances your ability to engage business owners and have value-added conversations around growth and exit.
