Straight Talk for CPA Firm Owners Planning Their Next Chapter

Towards the beginning of the year, I was speaking with a firm owner who had just gone through the sale of his practice. On paper, it looked like a win. He got a fair valuation, the buyer was established, and the deal closed smoothly. But when I asked him how he felt six months later, his answer surprised me. He told me the money was fine, but the transition had left him feeling restless. His staff had scattered, his clients were adjusting to new systems, and he hadn’t really thought about what his own days would look like after stepping away. What he expected to feel like “freedom” actually felt like a loss of identity. That’s the risk of selling too fast. The Rush to Exit It’s easy to see why so many owners want to move quickly once they decide to exit. Brokers dangle big promises. The workload feels heavier than ever. Technology, staffing, and client demands pile up, and selling starts to look like the perfect way out. The problem? Speed often comes at the cost of clarity. Owners who rush the process may: Accept a lower valuation than their firm deserves. Overlook whether the buyer’s culture matches their clients’ needs. Fail to consider how their own purpose and daily life will shift after the sale. The Power of Slowing Down On the flip side, I’ve also seen what happens when a firm owner takes the time to prepare properly. One CPA I talked to was initially leaning toward a quick sale. But instead of jumping at the first offer, he spent time getting clear on what he wanted his next chapter to look like. He realized he didn’t want to completely leave the profession; he just wanted freedom from the parts of ownership that drained him. We mapped out a plan: he merged with another firm that had strong systems in place, stayed involved in client advisory work, and transitioned his role gradually. Not only did he secure a better financial outcome, but a year later he was energized, fulfilled, and still deeply connected to his clients. Why Patience Pays Off The biggest mistake I see isn’t waiting too long to sell — it’s selling before you’re truly ready. Taking time to prepare your practice and clarify your own goals pays off in three ways: Financially: A stronger, more systematized practice commands a higher valuation. Relationally: Clients and staff are more likely to stay when transitions are thoughtfully planned. Personally: You step into the next phase of life with confidence and purpose — not regret. The Takeaway Selling or merging your firm isn’t just a business transaction. It’s a once-in-a-lifetime decision that shapes your finances, your relationships, and your identity. So before you rush, ask yourself: “Am I clear on what I want life to look like after the sale?” Because when you have that clarity, patience stops feeling like delay. It starts feeling like wisdom.

I’ll never forget a conversation I had with a firm owner a few years ago. He had spent decades building his CPA practice. Long hours, loyal clients, a small but dedicated staff. On paper, it looked like a success story. But when he came to me, he looked exhausted. “I know I need to sell,” he said. “But I have no idea what comes after.” That’s when I realized something important: timing isn’t the only factor in an exit. Clarity is. The Trap of “When” Instead of “What’s Next?” Many firm owners spend years circling the same question: When should I sell? It feels logical — get the timing right, and everything falls into place. But the truth is, I’ve seen owners exit after the “perfect timing”… and still regret it. Why? Because they never took the time to ask: What will my life look like six months after I sell? Do I want a clean break, or do I still want to stay involved? How will I replace the sense of purpose my practice gives me? Without clarity, timing alone can’t protect you from disappointment. The Firm Owner Who Found Peace of Mind One practitioner I talked to had initially planned to sell fast — a “get it done” approach. But instead of rushing, we slowed things down. He mapped out what he wanted his next chapter to look like: more family time, less admin work, but still keeping his hand in advisory and mentoring. Instead of a straight sale, he merged with another firm. He got a payout, kept a role he loved, and transitioned into retirement at his own pace. His words to me after a year? “I don’t miss ownership at all. But I’m glad I still get to do the parts of the work I love. And my clients are happier than ever.” Why This Matters for You Whether you’re 1 year away from exiting or 5, clarity is the foundation of a successful transition. Without clarity: You risk chasing a payout, only to feel empty afterward. With clarity: You create an exit plan that supports your finances, your lifestyle, and your peace of mind. The Question to Ask Yourself Today Instead of asking “When should I sell?” try asking: “What do I want my life to look like after I step away?” If you can answer that honestly, the rest of the pieces — timing, valuation, deal structure — start to fall into place.

When I wrote my last post — The CPA Exit Timeline: How Long It Really Takes — I focused on the numbers. The months (or years) it takes. The practical milestones. The logistics. But timelines aren’t just numbers on a calendar. Behind every exit story, there’s a person. And I want to share one with you. A Story I’ll Never Forget Last September, I sat across from a CPA firm owner who had finally decided: It’s time to exit. He assumed it would be simple. Maybe six months, a quick handoff, and then freedom. But as we dug into his practice, the reality hit hard: The firm was too dependent on him personally. There was no real client transition plan. The team wasn’t aligned or prepared. On paper, he thought his practice was worth one number. In reality, he left 30% of potential value on the table. And worse — the whole process felt rushed. He wasn’t leading the transition. It was leading him. Why So Many CPAs Wait Too Long I wish I could say this was an unusual story. It’s not. Most firm owners don’t start planning until they feel ready — but by then, their options have shrunk. And here’s the truth: Buyers don’t pay for effort. They pay for systems, profits, and potential. Transitions take 12–24 months (sometimes longer). Rushing never works in your favor. If you don’t clarify your vision before the process begins, even a “successful” sale can leave you restless or full of regret. What You Can Do Now If you’ve been running your practice for decades, chances are you’ve poured your life into it. Which means your exit isn’t just a financial decision — it’s a life decision. The earlier you start preparing, the more freedom you’ll create for yourself later. Here are a few practical steps you can take today: Run an honest readiness check. Is your practice too dependent on you? Would it run smoothly without you tomorrow? Diversify your revenue streams. Firms with recurring revenue command higher valuations. Clarify your vision. Ask yourself: What does life look like after my firm? (Travel? Family? Part-time advisory work?) Get help early. Having an advisor, mentor, or framework makes the process far smoother — and far more profitable. Why This Matters Selling or merging your firm is likely a once-in-a-lifetime decision. You don’t get a do-over. And if you start too late, the cost isn’t just financial — it’s emotional. You risk leaving money, freedom, and peace of mind behind. The good news? With the right preparation, you can exit on your terms — confidently, profitably, and without regret. Next Step: If you’re even thinking about what comes next, don’t wait until you feel ready. Start now. I invite you to schedule a call with me to talk about your exit readiness and how to plan a transition that truly works for you.

When CPA firm owners start thinking about their exit, most imagine the process will take less than a year. Find a buyer, sign the papers, and move on. In reality, a smooth, profitable transition almost always takes 2–5 years of preparation. That timeline surprises people. But when you look closer, it makes sense. Exiting isn’t just a transaction — it’s a process of preparing your firm, your clients, your team, and yourself for what’s next. Here’s what that really looks like. Year 1: Clarity and Preparation The first step is getting clear on what you want. Are you selling outright? Merging? Stepping back gradually? This stage is also about preparing the practice itself: Reducing owner-dependence Cleaning up systems and financials Assessing practice valuation Without this clarity, the rest of the timeline feels rushed. Years 2–3: Strengthening and Transition Planning Once you know the direction, it’s time to make the firm more attractive and resilient. This includes: Transition planning for clients (so relationships remain strong) Team readiness and alignment with future leadership Incremental steps to improve profitability and stability The goal: create a firm that doesn’t just depend on you, but one that a buyer sees as a valuable, sustainable asset. Years 3–5: Execution and Exit By this stage, you’re positioned to act. Whether it’s an external sale, internal succession, or merger, you’ve given yourself options. You’re also giving yourself peace of mind. Instead of scrambling to make the deal work, you can move forward with confidence that your practice — and your legacy — are in good hands. The Bottom Line If you’re a CPA firm owner, the best time to start preparing isn’t “someday.” It’s now. Because even if your exit is 3–5 years away, the decisions you make today determine how smooth, profitable, and fulfilling that transition will be.

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