[Expert Opinion] Exit-Ready Accounting Firms: Role of a CPA

Preparing a firm for future transitions in today’s dynamic accounting landscape isn’t just smart, it’s a strategic necessity. Whether the goal is succession, sale, or long-term scalability, being “exit-ready” has become essential for CPA and accounting firms aiming to stay competitive and resilient.

But exit-readiness isn’t just about timing; it’s about building sustainable value, reducing operational risk, and creating systems that can thrive beyond the founding leadership.

In this Expert Opinion feature, Ace Cloud Hosting spoke with Ben Towne, a seasoned CPA, business valuation expert, and co-founder of Towne Advisory and Assurent Advisors. With deep roots in Silicon Valley’s advisory ecosystem and as the host of the MaxValue Podcast, Ben brings a unique blend of technical expertise and practical insight into how firms can proactively position themselves for a seamless exit.

From adopting cloud-based systems and tackling staffing gaps to leveraging technology for higher valuation, he outlines the key traits of firms built to survive and succeed at every stage.

Q1. What does it mean for a CPA firm to be “exit-ready,” and why is it important to prepare well in advance of a potential sale?

An exit-ready CPA firm will be the one that doesn’t actually need to sell but will be attracted to the opportunity such a sale might bring. So, what does that mean? They have the staff and processes in place that make their staff effective and efficient.

Even in this competitive environment they have solved the staff and succession problem. Very likely, they have found a hybrid approach that allows them to accomplish the same work faster and with talent sourced from wherever it lives (not just where the firms live).

Achieving this state of readiness is not an overnight process. It can require several years to properly assess any gaps in readiness and build up the required resources and experience with smooth operations. With changes in the firm that can be significant, there needs to be time for implementation, integration and moving the firm culture to embrace them.

Q2. How can CPAs provide strategic value during exit planning beyond their traditional compliance role?

CPAs are a crucial part of any exit plan, and not just to advise on tax efficiency. Most often the CPA is the professional that the client has worked with longest and relies on most for technical business advice. It is likely they have the most insight into the mechanics of the business and are often the conduit between the business owner and the rest of the crucial advisors (like attorneys, appraisers, or brokers).

The process of exiting is a huge undertaking which needs to be overlaid in the normal operations of the business so it’s not stumbling and losing value even while you’re in the process of selling. Having some reinforcements that already know the firm can be an extremely helpful service provided by the CPA.

Q3. From a valuation perspective, what red flags tend to lower the attractiveness of a CPA firm during a sale or merger?

The value of anything comes from its growth, risk, and profitability and that goes for CPA firms too. Usually, the biggest factor in the readiness of a firm to transition or exit is having excessive risk factors. Common deal killer land mines are things like excessive reliance on a few key employees, lack of documented processes, and antiquated systems.

The CPA world is well known enough that even with those negatives you still might be able to sell a run-down firm, but the value will suffer if the buyer has to do all the work. Things that will truly kill a deal are lack of clarity around ethical behavior, risky positions, and history of error.

Q4. How does the adoption of technologies like cloud computing, AI, or other intelligent systems impact a firm’s valuation?

The key term there is “systems”! There’s a particular way that a firm does what it does so well and keeping the quality and client experience consistent is key to building and maintaining transferable value. Systems ensure that things are done the right way every time and therefore are what a buyer can rely on to make sure that value is maintained in a purchase.

Tools like cloud accounting and AI can be the backbone of these systems and leverage them to become even more effective. For example, if a live review of a tax return is part of the standard process with a client (i.e. part of the documented “system”) you’re probably using a number of technologies to make it more efficient.

Generally, you’re sharing the draft return via a client portal (cloud accounting). To prepare you’re likely to review the tax return yourself but can also use AI to analyze and suggest commentary based on year over year trends and changes. Holding the meeting itself is often via video conference software. Hopefully you’re using an AI notetaker in your video conference because that can provide a meeting summary and automated “to do” lists as necessary–without you having to lift a finger to document and share.

And this is just one example of a system in business that can be enhanced by the use of technology. The use of such technologies can enhance value both by directly enhancing the operating metrics of the firm, but also indirectly by reducing risk (error and inconsistency) as well as increasing the transferability of operations to a buyer.

Conclusion

Exit-readiness isn’t a milestone; it’s a mindset. As Ben Towne emphasizes, firms that streamline operations, embrace innovation, and mitigate risk are better positioned to drive performance today and maximize value tomorrow. It marks a fundamental shift for CPAs—from being compliance experts to becoming strategic advisors focused on long-term growth and continuity.

Whether you’re planning for an eventual exit or simply want to future-proof your practice, start by investing in systems that grow with you. Discover how Ace Cloud Hosting can help you stay secure, connected, and ready for what’s next.

At Ace Cloud Hosting, we’ve been empowering the CPA and accounting industry for over 15 years with secure, cutting-edge cloud solutions. From hosting critical applications like QuickBooks to delivering virtual desktops, managed IT, and AI-powered managed cybersecurity services, we help firms stay agile, efficient, and prepared for what’s next.

Is your firm thinking about succession or exit planning? Share your thoughts in the comments—we’d love to hear how you’re preparing.