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The print book is officially available! You were one of the early supporters, so I’m giving you 33% off as a thank you. Use code JACKIE33 at checkout. Order here: https://cpa.click/jackie

Building a successful advisory practice is a significant achievement. But what happens after the growth, the clients, and the milestones? True freedom comes from knowing you have a plan for the future of your business and the impact you’ll leave behind. Planning your exit isn’t about quitting. It is about building a business that is a valuable asset and ensuring your hard work carries on according to your wishes.

It may feel premature to think about leaving when you are still knee-deep in building your practice. But having an exit strategy from the beginning (or right now, if you haven’t created one yet) is one of the smartest moves you can make.

I once coached a dedicated CPA who tragically passed away without any plan in place. No succession, no instructions, no insurance. His grieving wife, not a CPA, had to sell the practice quickly at a deep discount. Staff were left uncertain, and clients were shuffled. Years of hard work evaporated overnight.

This scenario could have been avoided with even a simple succession outline. Don’t give all your best planning advice to clients and forget yourself. Apply it to your own life.

When I sold my firm in 2022, people assumed it was a financial decision. It wasn’t. It was about legacy and freedom. I wanted continuity for clients, opportunities for my team, and time with my family. Negotiating was intense, but the peace came from knowing the firm would live on without me. That is the true test of a Balanced Millionaire: can your business thrive even when you step away?

When it comes to eventually exiting your practice (on your terms or otherwise), there are a number of paths you could take. Each option has its own pros and cons. It’s useful to understand them so you can keep doors open and steer your business in the direction that aligns with your preferred exit. Common exit options include:

Pro tip: There’s no universally “right” choice, only what’s right for you and your stakeholders. Some advisors even use a combination (for instance, sell a portion to a partner and phase out, or merge and then retire from the merged firm). The key is: start thinking about these options early. You don’t have to decide now, but being aware lets you prepare in advance.

Regardless of which exit path ultimately appeals to you, there are certain steps that will prepare your firm to be transition-ready. And here’s the great part: these steps will also make your business stronger and more profitable today. An “exit-ready” business is well-run and efficient. Here’s how to start preparing:

The Boy Scout and Girl Scout motto applies: Be prepared. By readying your firm for an eventual exit, you create a safety net for yourself and your stakeholders. You also ensure that when you’re ready to exit, you can do so smoothly and on your terms, maximizing the value and minimizing drama.

I’ll share a personal story to illustrate how thinking strategically about exits can be incredibly rewarding. A few years back, I made the tough decision to sell portions of my client base, and eventually my entire firm. Here’s how it unfolded and what I learned:

A while ago, I realized that a chunk of my clients weren’t the right fit for the evolving advisory-focused practice I wanted. They were taking a lot of time for relatively low return and not embracing the new advisory model I was rolling out. In 2016, rather than just “firing” those clients outright, I decided to sell about 60% of my client base to another accountant.

The result? Interestingly, even after letting go of over half my clients, my overall revenue skyrocketed in the following year. How? Because the clients I retained were exactly the ones who valued advisory services, I repriced and packaged services for them at  five times what they were paying before (delivering vastly more value, of course), and they were thrilled with the deeper service. It proved the point: fewer clients, better served, can equal more revenue.

Fast forward to 2022: I had built up a highly systematized, efficient seven-figure firm with a great team and great clients. I was also growing other business ventures. I decided it was time to take the leap and sell the entire firm to pursue those other passions.

Because I had spent years organizing my practice (much of it following what I’ve shared in this book, processes, pricing models, team, etc.), I was able to sell at a premium. In fact, the final sale price was 1.5 times annual recurring revenue (ARR) of the firm. For context, many accounting firms sell for around  one times the annual revenue (or even less if they’re very owner-dependent).

Getting 1.5x ARR was significantly above the average valuation at the time. The buyer saw the value in our streamlined operations and stable recurring client fees, they were buying a machine, not just a book of business.

Another takeaway: Don’t just “fire” clients if you can sell them. Earlier, in 2016, when I parted with those 60% of my clients  , I could have simply disengaged and let them find other accountants. But by selling that block of fees, I not only got a monetary boost, but I was also able to hand-pick a buyer who I trusted to take good care of them.

It was a win for me, the buyer, and the clients (who got an advisor eager to serve them). So if you have lower-tier clients you’re thinking of letting go, consider selling that portion of your practice. Even if it’s, say, $50K/year in revenue, there are accountants who would happily pay for that and give those clients the attention they need. You get cash and peace of mind, they get growth, the clients get appropriate service. Everyone wins.

The experiences of selling parts of my firm taught me a lot and made the final sale of the whole firm much smoother. The big lesson: when you build a business with strong fundamentals, you have options. I was able to navigate these exits on my own terms because I had a plan and I treated my firm as a valuable asset all along.

Let’s shift from the financial and practical side of exit planning to a more personal side: your legacy. When all is said and done, and you step away from your firm, what do you want to remain as a result of your work? Legacy isn’t just a grand concept for famous people, it’s something each of us creates through our career and how we affect others.

Consider these dimensions of legacy as you plan your future:

Legacy is the sum of the lasting changes you’ve made, in your clients’ finances, in your team’s careers, in your community or industry, and in your own life story. As one saying goes, “Legacy is not what’s left for you, it’s what’s left in you and in others.” By planning with legacy in mind, you’ll likely make more principled decisions about your exit rather than purely emotional or short-term ones.

Having gone through the process of selling clients and eventually an entire firm, I gathered some invaluable lessons. If you ever consider selling part or all of your practice, keep these in mind:

Always Have a Retention Clause: If you sell clients or your firm, include a clause in the sale agreement that protects you if clients don’t stick around. Early on, I sold a block of clients without a retention clause, assuming all would go smoothly. Unfortunately, the buyer didn’t retain everyone, they lost about 40% of those clients within the first year.

They came back asking for a price adjustment. It led to an awkward situation, and I ended up refunding part of the price. I learned that a well-drafted, reasonable, retention clause can save a lot of trouble.

For example, you might agree that if less than, say, 85% of clients are retained after  one year, the price will be adjusted downward by a certain formula. This aligns incentives and avoids disputes. It’s a standard practice I won’t skip again.

The Ideal Buyer Is “Best in Class”: I was extremely fortunate in my final firm sale, I sold to one of my top coaching clients, someone I knew was a rockstar and would take amazing care of the practice. She had been in my mastermind group and was the best implementer of our growth strategies, so I trusted her capabilities and values completely.

This made the due diligence and transition so much easier (trust is everything in a deal). The lesson: if you can, sell to someone you know is a badass and whom you trust. It’s not always  possible but consider your network of colleagues or mentees, your successor might be there.

And if you don’t know the buyer beforehand, do your homework, get to know how they operate, maybe talk to others who have worked with them. The smoother the cultural and trust fit, the better for you and your clients. (And if you don’t have a ready buyer in mind, a good business broker can bring you a pool of vetted candidates to choose from.)

Get an Outside Perspective on Valuation: When I first contemplated selling my firm, I undervalued it. I was thinking of asking about 1.2 times annual revenue, which seemed fair to me. Then I ran the idea by members of a business group I’m part of (who aren’t in the accounting field, which helped with perspective in this case).

My C12 members pointed out how unique and systematized my practice was and urged me to aim higher. As a result, I went back and floated 1.5x ARR to the buyer, and she agreed without hesitation because she recognized the value too. 

Moral: Don’t underestimate the value of your firm. We often have modesty or limited reference points. Consult with mentors or industry peers, or even a formal valuation expert. You might find you can command a better deal than you thought, especially if you’ve built strong systems and recurring revenue.

Introduce Clients to the New Owner (the Personal Touch): One of the best things I did during my sale was record a personal introductory video for all my clients. In it, I introduced the buyer (new owner), explained why I chose to sell and why this change was in their best interest (emphasizing the additional support and resources they’d get, and that I trusted this person). I also assured them I’d be around in the background for a while to consult.

Additionally, I offered to join the buyer in one-on-one meetings with my top clients to personally hand over the relationship. These actions greatly eased client anxieties. They saw that I cared enough to ensure they were comfortable, and it helped the new owner start off on the right foot with trust.

If you exit, consider doing the same: a letter or video to all clients, plus personal calls or meetings with key ones. It’s classy and effective. (We even wrote into the sale agreement that I’d provide, say, five hours a week of consulting help for a month after closing to answer any of the new team’s questions, this gave everyone confidence.)

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Confronting the “Icky” Feelings: Some advisors feel guilty about the idea of selling their practice, like it’s abandoning clients or monetizing relationships. If you feel a bit “icky” or uneasy about the notion, ask yourself this tough question that I pose to my coaching clients: “Are you truly giving all of your clients the best care possible right now, or could someone else maybe do a better job for some of them?” 

Often, when we’re stretched thin or leaning toward new interests, we aren’t serving everyone to the utmost. And deep down, we know it. Every single advisor I’ve walked through a sale who had doubts initially has later told me they do not regret selling. In fact, they often wish they did it sooner once they see their clients thriving with a new advisor who has more time for them.

Sometimes holding on can be more about our own identity than the clients’ best interest. Selling to a capable successor can actually be the best thing you can do for certain clients who will get more attention and fresh energy from the new owner. So, reframe selling not as something shameful, but as potentially doing right by your clients and your own future.

Each of these lessons came from real-world experience and sometimes mistakes. Use them to shortcut your own learning curve when the time comes to consider an exit.

Additionally, consider  whether there are financial tools you should have in place. For example, a life insurance policy that names your business or family as beneficiary to cover loss of your income, or a buy-sell agreement funded by insurance if you have partners.

More advanced strategies can also be relevant, depending on your goals, such as an Employee Stock Ownership Plan (ESOP), if you plan to have employees take over gradually, or setting up a trust (like a Deferred Sales Trust or Charitable Remainder Trust) as part of an exit to manage tax impacts or continue your legacy through charitable giving.

Action Items: Go to Jackie.CPA to complete this step online plus bonuses.

Now, let’s outline some action steps to begin incorporating exit and legacy planning into your journey right away. These are not things to put off until “someday when I retire.” They will benefit you even now:

“If I am incapacitated or pass away, I want [Name] to step in and oversee my firm’s transition. Clients should be notified by [method], and [Key Employee] should be retained to assist.”

Store it somewhere accessible and email it to the person if you can. This is like a will for your business and could save enormous stress for your family, clients, and team. Also consider what passwords only you know and how to access.

By taking these actions, you’ll integrate exit strategy into your ongoing business strategy. Far from distracting you, it will likely sharpen how you build your firm. You’ll be building with purpose. And whether your exit comes in a few years or a few decades, you’ll be ready to make that move confidently, knowing you are protecting what you built and setting it (and yourself) up for the next stage.

Planning your exit is not about ending your journey. It is about ensuring the next chapter begins with purpose and stability. By preparing now, you make better decisions today, build a stronger business, and leave behind a legacy that outlasts you. A true Balanced Millionaire does not just create profit and freedom. They also leave a meaningful legacy for clients, teams, and the profession.