Top 5 Talking Points for CEPAs to Engage Business Owners

As a Certified Exit Planning Advisor (CEPA), your proficiency in connecting with and understanding each business owner's unique needs is paramount. This article combines Chris Snider's strategic insights from "Walking to Destiny" with the latest findings from the 2023 National State of Owner Readiness Report to offer five essential talking points that underscore the value of proactive exit planning.

1. Highlighting the Importance of Early Exit Planning 

With 75% of business owners planning to exit within the next decade, early exit planning is more crucial than ever. Starting early allows business owners to identify value gaps and strategically align their goals, ensuring a lucrative and orderly transition.

Talking Point

"Did you know that starting your exit planning early can significantly increase your business's market value and provide a smoother transition when you want to launch your next endeavor?"

Pro Tip

Leverage exit planning software to conduct a comprehensive Value Gap Analysis. Using a leading exit planning software like Maus enables business owners to quickly see the potential between the business’s current valuation and its potential market value. By providing clear, actionable insights, this analysis helps business owners understand specific areas that need improvement to maximize their company’s value

2. Understanding and Articulating Business Value

Business owners often overestimate their company's value by 50 - 100%. This overestimation stems from several factors: due to emotional investment, misjudgment of intangible assets, inaccurate comparisons, and lack of market knowledge. A significant portion of business wealth—$14 trillion—is expected to change hands soon, making realistic valuations critical for setting growth benchmarks and improvement opportunities.

Talking Point

"Let's start by understanding the real market value of your business today, which will help us set accurate targets for improvements and ensure you achieve your financial goals upon exiting."

Pro Tip

Utilize software that can quickly provide an opinion of value with best-in-class private market data. It should be capable of pulling real-world private market sales data to act as the core of the initial valuation. The software should offer comprehensive qualitative assessments to provide transparent discussions and data-driven insights for value enhancement​.

3. Stressing the Value of Continuous Improvement

Integrating continuous improvement strategies can significantly enhance a business's operational efficiency and market value. This approach aligns with the proactive planning behaviors observed among younger business owners, as reported in the 2023 survey.

Talking Point

"Incorporating continuous improvement strategies not only enhances day-to-day operations but also significantly increases the long-term value of your business, making it more attractive to future buyers. As Scott Snider of the Exit Planning Institute has said "Exit planning is just good business planning."

Pro Tip

Use exit planning focused project management tools to keep improvement initiatives on track to make continuous improvement efforts easier while fueling efficiency and customer satisfaction. Increasing the business’s attractiveness of the client’s business to potential buyers​.

4. Leveraging Valuation for Personal Financial Planning

Effective valuation is required for personal financial planning and preparing business owners for their eventual transition. It prepares the business owner for the next chapter of their lives and underscores how their personal net worth and business value are intertwined — better illustrating the urgency of robust financial strategies to enhance business attractiveness and readiness for a potential transition.

Talking Point

"Creating a financial plan is nearly impossible without understanding the estimated net proceeds the owner can expect at exit. By proactively addressing vulnerabilities discovered in our process, we may have a positive impact on your business's market value, setting you up for a significant exit."

Pro Tip

Harness the power of software to address the “Personal Gap” and highlight the impact the Value Acceleration Methodology may have on an owner's legacy. The Personal Gap can be used upfront in an engagement to recruit the mindset of the owner as they visualize the impact your engagement may have.

5. Focusing on Legacy and Continuity Planning 

Business owners should prioritize business continuity and legacy preservation for separate reasons. Ensuring business continuity is vital to guarantee that the business remains successful and operational beyond the current ownership – a core requirement for any buyer. Meanwhile, preserving the business's legacy will be considered crucial for many business owners. This involves safeguarding the company's core values, culture, and reputation, ensuring that the founder's vision and the business's identity are upheld for future generations.

Talking Point

"Our goal is to ensure your business thrives beyond your leadership, preserving your legacy and maintaining its core values, whether transitioning to family or a new owner."

Pro Tip

Legacy planning ensures that the business adheres to the founder's values and vision, facilitating a smoother transition to new ownership. Ensure that your software platform includes detailed assessments that identify risks for business continuity as well as the owner’s concerns about their legacy post transition. The platform should provide an action plan to address the uncovered issues.

Conclusion 

As a Certified Exit Planning Advisor, you have the knowledge to help business owners accomplish their dream exit. Leverage your unique ability with technology to become an indispensable resource to business owners facing a complex time of transition in their lives. Combining training from The Exit Planning Institute and a leading exit planning software built for CEPAs by CEPAs, ensures that business owners not only maximize their financial outcomes but also secure their legacies — leading to a satisfying and productive next chapter of their lives. You are their trusted advisor, and this is your opportunity to prove it to them!

Turnkey Value Acceleration Methodology (VAM) Automation

Automate the Value Acceleration Methodology with ValueMax, by Maus Software, the exit planning platform trusted by more CEPAs than any other. Exit Planners love the ease with which ValueMax automates and systemizes the VAM, providing you with the tools to enhance business valuations and streamline client engagements. Whether you're a seasoned CEPA or just starting your journey, integrating Maus Software allows you to focus more on strategy and less on administrative tasks. Harness these tools to deliver consistent, high-quality advice and manage more client cases with efficiency. Embrace Maus Software and revolutionize your approach to exit planning, making every step predictable and precise. Discover the full potential of your advisory services with Maus Software—where technology meets client success. Contact us today to learn how Maus can work for you, or request a call!

Meet the Author

Michael Brady is the Director of Sales at Maus Software, where he leverages his deep industry knowledge and innovative strategies to drive success. As an experienced Investment Advisory Representative (IAR) with over 12 years in the financial services industry, Michael has become a trusted advisor and mentor, having trained more than 100 licensed Financial Advisors. His 14 years of dedicated service to business owners and families have equipped him with unparalleled insights into exit planning and wealth management. Michael's passion for helping advisors grow their practices shines through in his work, making him a leading voice in the field.

For more information, he can be reached at mbrady@maus.com or on LinkedIn.