According to recent reports, there is a potential $3.7 trillion in value that business owners can unlock with proper planning and preparation. As owners increasingly focus on exit planning, they are more inclined than ever to engage in formal discussions centered on accelerating value and business exits.
Despite this heightened awareness, a significant number of owners still lack formal transition strategies and the advisors needed to help implement them.
As market dynamics continue to evolve, preparing clients for a successful exit requires a strategic approach and the right tools.
The Capitaliz platform offers robust solutions for business succession and exit planning engagements. This blog not only explores the key features of the Capitaliz platform but also provides insights on how modern-day advisors can effectively integrate these features into their practice to help clients maximize their business value and achieve successful exits.
Keeping Up in a Digital World: Understanding the Capitaliz Platform
The Capitaliz platform is an industry-leading assessment, valuation, and roadmap tool designed specifically for business succession and exit planning. Used with over 800 clients for more than 15 years, it provides a comprehensive solution to identify value gaps and map out exit planning engagements from start to finish. The platform's key features include the Value Gap Assessment, Business Insights Report, Value Potential Insights, 21-step Implementation Roadmap, Dynamic Revaluation, and Collaborative Engagement.
For Certified Exit Planning Advisors (CEPA®), the Capitaliz platform is particularly beneficial.
It empowers advisors with the tools and resources necessary to excel in their roles at every level of exit and succession planning. In today's digital advisory landscape, having both deep industry knowledge and innovative software solutions is essential. Capitaliz enhances advisors' capabilities, allowing them to effectively apply their expertise, streamline processes, and deliver customized strategies to clients.
By integrating Capitaliz into their practices, CEPAs can significantly elevate their service offerings. The platform's comprehensive analytics, client engagement tools, and customizable planning options enable advisors to create impactful outcomes for their clients. This synergy between knowledge and technology ensures that CEPAs not only meet but exceed client expectations, fostering stronger relationships and driving success in an increasingly competitive business environment.
Key Features of the Capitaliz Platform
Value Gap Assessment
A relatively new tool, the Value Gap Assessment empowers CEPA advisors to market themselves and attract new clients using data. This assessment identifies and bridges the discrepancy between a business’s current value and its potential worth. By understanding the factors that influence valuation, including market trends and operational efficiencies, advisors can deliver tailored recommendations that empower clients to make informed decisions.
Ultimately, this feature aids in maximizing returns during an exit strategy and fosters a deeper client-advisor relationship rooted in trust and expertise.
Business Insights Report
The Business Insights Report is a cornerstone of the Capitaliz platform. Utilizing 300 data points, it automatically calculates company-specific risk, beta, and risk weightings, along with business valuation. This report allows for efficient and accurate comparisons across industries, helping advisors identify value gaps and map out exit planning engagements. The report has dramatically improved conversion rates from initial reports to advisory engagements, making it a powerful tool and the ultimate triggering event for CEPA advisors.
Value Potential
Based on the Business Insights Report, the Value Potential Index leverages over 150 non- financial data points to quantify the value gap and identify key projects for enhancing business value. The platform's algorithm can predict value potential across various demographics, enabling CEPA advisors to offer targeted advice and strategies that maximize business value.
[Download the latest Capitaliz Value Potential Index report here.]
21-Step Implementation Roadmap
The 21-Step Implementation Roadmap, used with business owners for over a decade, helps identify, protect, accelerate, unlock, and manage value in privately owned businesses.
Automatically generated by the platform, this roadmap provides a clear, actionable plan for advisors to follow over 18 to 24 months, ensuring all critical steps are taken to maximize business value and prepare for a successful exit.
Dynamic Revaluation
The Dynamic Revaluation feature tracks valuation impacts and updates the client dashboard as clients progress through various projects identified in the Business Insights Report. This feature highlights the value of advice over the five stages of value and allows advisors to demonstrate the tangible impact of their guidance while keeping clients informed of their progress.
Collaborative Engagement
Exit planning is inherently collaborative, requiring coordination between various advisors and business owners. The Capitaliz platform allows multiple users, including CPAs, attorneys, and other professionals, to access projects and engage in seamless communication. The platform supports internal collaboration and task management, creating accountability across the entire team for project activities and ensuring an efficient exit planning process.
Effectively Using Capitaliz as a Certified Exit Planning Advisor
Having explored the key features of the Capitaliz platform, it's essential to understand how these tools translate into tangible benefits for advisors. By harnessing the powerful capabilities of Capitaliz, advisors can enhance their offerings and streamline their practices, ultimately leading to superior client outcomes.
To maximize the advantages of the Capitaliz platform, advisors should follow these best practices:
Leverage the Business Insights Report
Start by generating a comprehensive Business Insights Report for each client. Use the report to identify value gaps and prioritize key areas for improvement. This report will serve as the foundation for your advisory engagement, providing a clear understanding of the client's current business value and potential areas for growth.
Focus on Value Potential
Utilize the power of the Value Potential features to both quantify the value gap and identify key projects that can accelerate business value. Provide clients with targeted advice and strategies based on the platform's insights, helping them focus on high-impact areas that will maximize their business value.
Follow the 21-Step Implementation Roadmap
Adhere to the 21-Step Implementation Roadmap to ensure a structured and comprehensive approach to exit planning. This roadmap will guide you through the critical steps needed to identify, protect, accelerate, unlock, and manage value in the client's business. By following this roadmap, you can provide clients with a clear and actionable plan for achieving a successful exit.
Monitor Progress with Dynamic Revaluation
Regularly monitor the client's progress using the Dynamic Revaluation feature. Keep clients informed of their valuation impact and value acceleration over time. Use this feature to demonstrate the tangible benefits of your advice and maintain client engagement throughout the exit planning process.
Foster Collaborative Engagement
Encourage collaboration between all stakeholders involved in the exit planning process. Use the Capitaliz platform to facilitate communication and coordination between CPAs, attorneys, and other professionals on the exit planning team. Ensure that all interactions are documented, and tasks are managed effectively to create accountability and streamline the exit planning process.
Supercharge with Software: Elevating Advisory Practices with Capitaliz
The Capitaliz platform offers a comprehensive and powerful solution for business succession and exit planning. By leveraging its key features, CEPAs can provide clients with targeted advice and strategies to maximize business value and achieve a successful exit. From the Value Gap Assessment to Dynamic Revaluation and more, the collection of features works together to create a seamless and effective exit planning process.
By following best practices and utilizing the Capitaliz platform to its full potential, advisors can help clients navigate the complexities of exit planning and achieve their business goals.
For more on the Capitaliz connection to the EPI network and CEPA community, click here. If you’re interested in learning how Capitaliz could support your business advisory services schedule an intro call today!
