Who has a seat at the table?
Here we cover the key members of your exit planning team and their roles in the process.
Business Owner
- 80-90% of an owner's wealth is locked in their business
- Their ability to monetize this wealth impacts their financial security and lifestyle
- They need a cross-functional transition team to assist their exit
Financial Advisor
- They ask all the pertinent personal and financial questions to the owner
- Instrumental in calculating an owner's Wealth Gap
- Remain on the owner's team long after an exit
CPA
- They are considered one of the owner's Most Trusted Advisors
- They provide a diverse set of services, including tax preparation, financial statements, forensic accounting, auditing, and valuation
Attorney
- 61% of owners with a formal transition team in place include a business attorney
- They provide legal advice on issues that impact the Four Intangible Capitals
- They connect the owner to different types of legal counsel in personal or personal financial capacities
Growth Consultant
- They are often referred to as a Value Advisor
- They assess the personal, business, and financial goals of the owner throughout the exit
- They manage the owner's business value
Board of Advisors
- 91% of owners have a dedicated Board of Advisors
- The Board of Advisors will provide the owner and their family with valuable advice from individuals with years of experience
- They play a role on an owner's transition team but should not be an owner's only resource during their exit
Estate Planner
- They help maximize the owner's wealth effectively while minimizing estate taxes
- They are involved in the creation of the Will, and Trusts for the owner's children, and organizing charitable contributions
- 33% of owners say an Estate Planner is on their transition team
M&A Advisor or Investment Banker
- These advisors are typically used if the business owner is going to sell to a third party
- They can also help their client raise money to purchase a business
- They position the company for sale, including deal preparation, negotiating terms and price of the acquisition or merger, and arranging the sale of the company itself
Risk Advisor
- They work with the owner to mitigate and manage risks in the business
- These advisors provide general business liability insurance, cyber security insurance, key man insurance, and life insurance
- They sometimes manage healthcare benefits for the company
Family Members and Family Business Advisor
- Everything an owner does directly impacts their family and the families of their employees, partners, and vendors
- 84% of owners state they meet with their family annually to discuss the business and 12% consider their spouse their most trusted advisors
- A family council acts similarly to a business Board of Advisors and assists in managing disputes between the family and business
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