The Role of a CEPA

The 5 D’s

Many business owners plan for a successful exit—but far fewer are prepared for the unexpected.

In fact, 79% have no written transition plan, and nearly half have done no exit planning at all. Even more concerning, roughly 50% of exits are involuntary, triggered by events outside the owner’s control.

That’s why a thoughtful plan isn’t just about maximizing value, it’s about protecting it.

A comprehensive exit strategy should account for the most common unexpected events, often referred to as the 5 D’s:

• Death
• Disability
• Divorce
• Disagreement
• Distress

These are the scenarios that can force an unplanned exit—often quickly, and often at a significant loss of value.

What Happens If You’re Not Prepared?

Most people assume a will or basic documents are enough. But what happens in real life is often more complex.

• If a partner passes away, can the business continue seamlessly?
• If you’re unable to work, who steps in—and how?
• If there’s a disagreement between partners, what’s the path forward?
• If personal circumstances change, how does that impact the business?

Without a clear plan, these situations can disrupt operations, strain relationships, and significantly reduce the value of the business.

Planning Beyond the Ideal Scenario

Exit planning isn’t just about the best-case outcome, it’s about being prepared for the unexpected.

It’s about putting the right structure in place so your business can adapt, continue, and retain its value over time.

At Kramer Financial, this is part of our Investing with a Plan approach—striving to ensure that every piece works together, even when circumstances change.