In all generations of business owners, we can see how the exit planning ecosystem of advisors comes into play. What the marketplace needs today is a harmonious relationship between educators and those doing the work. Some advisors bring a holistic approach to educating business owners. These advisors share how to accelerate the value of their companies and align their personal and financial goals. Another advisor type is those who are brought in to drive that significant value into the owner’s company.
In the marketplace “Value Advisors” are referred to by many names. These include value growth or creation advisor, consultant, strategic advisor, strategic growth advisor, implementer, management consultant, or business coach. They primarily focus on the business, but as Certified Exit Planning Advisors (CEPA®), they can organize an exit planning advisory team as well. A team gets more engaged with the owner and in the overall process. Therefore, Value Advisors incorporate personal planning and personal financial planning into the strategy.
Today is International Consultants Day. As the value advisor or consultants play such a large role in the exit planning process for business owners, we want to highlight some of the key attributes of a value advisor and how they work on an owner’s team.
What is a Value Advisor?
A value advisor is an important part of a business owner’s interdisciplinary exit planning team. They work with financial advisors, wealth managers, CPAs, and the owner’s leadership team to reach the owner’s business, personal, and financial goals. Also known as growth consultants, they manage an owner’s business value and help to unlock the wealth trapped in the business. They assess the personal, financial, and business goals of the owner before, during, and after their transition from the business. This growth consultant is also referred to as a Value Advisor. A Value Advisor is an advisor who does the exit planning work on an owner’s exit planning team. They charge for exit planning services and incorporate their CEPA education into their exit planning work.
While the methods may vary, all value advisors work with their owners to build value in the business, educate them on the risks in their business, and work towards closing an owner’s three gaps: Value, Profit, and Wealth.
How Long Does a Value Creation Engagement Take?
Value creation is not something that happens overnight, or even in a month. It is a continuous process in which an owner works with their team of advisors to build transferable value in their business. We interviewed some of the value advisors in the EPI community, and they shared that their typical value creation engagements can last anywhere between 3-5 years.
Building Significant Business Value
Value growth consultants are instrumental in accelerating business value and ensuring businesses are both attractive to potential buyers and ready for an exit. In order for your company to be significant, it must be both attractive to customers and potential buyers, as well as ready to be transitioned. Through exit planning, you are able to build incremental value in your business and personal life that not only makes your business more attractive to buyers but makes you more personally ready to exit your business.
Learn more about Value Consultants and how they work with business owners in our Value Creation white paper.
