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The Value Adviser: A Key Player in Exit Planning
In the world of exit planning, clarity around the role of the value adviser is essential. While you’ll hear terms like “coach” or “consultant” tossed around, a true value adviser is someone who helps business owners grow, optimize, and prepare their business for a successful, transferable exit — while optimizing current business conditions for growth now.
It’s important to distinguish value advisers from business brokers or M&A specialists, who may use similar titles but serve different functions. The focus here is on those who drive sustainable business growth and create real, transferable value.
The Power of Business Intelligence (BQ)
We all know about IQ and EQ, but in this arena, business intelligence (BQ) is the game changer. BQ isn’t just about knowledge; it’s about having the ability to both persuade and professionally challenge business owners. The best value advisers don’t just nod along — they have the experience and confidence to ask tough questions, push for better solutions, and ensure every decision is made with long-term value in mind.
This blend of persuasive ability and constructive challenge is what sets apart advisers who truly move the needle for their clients. It’s about safeguarding relationships, managing sensitive information with integrity, and always keeping the client’s best interests at the forefront.
Integrating Value Advisers and Financial Advisers
A thriving exit planning process depends on seamless collaboration between the value adviser and the financial adviser. The financial adviser is the architect of the owner’s present and post-exit financial security, while the value adviser is the engineer, optimizing the business to maximize value at the point of transition while growing profit and revenue now.
When these roles are aligned, the impact is not just felt at the exit — it’s realized throughout the entire business lifecycle. Drawing from George Sandmann’s The Growth-Driving Advisor, the right value adviser and financial adviser, working together, drive profit and value at every stage by focusing on the three dimensions of business growth:
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Creating Predictable Profits and Cash Flow: Ensuring the business generates reliable earnings and liquidity, which forms the foundation for growth and stability.
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Driving Predictable Growth: Investing in operational areas and prioritizing strategic projects that lead to sustainable revenue expansion and market relevance.
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Building Predictable and Transferable Equity Value: Connecting operational improvements and growth to higher monetizable value, making the business attractive and ready for a premium exit.
This integration ensures owners experience meaningful gains now, not just at the finish line. The business becomes more profitable and valuable at every step, creating a win-win scenario for both the owner and their advisory team.
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The value adviser identifies and implements growth strategies that make the business more attractive to buyers.
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The financial adviser ensures the proceeds from the sale are managed to secure the owner’s future.
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Together, they create a holistic plan that aligns the business’s value with the owner’s personal and financial goals, delivering profit and value at all stages of the process.
Risks and Opportunities
Bringing a value adviser into the fold is a high-leverage move — but only if done with care:
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Opportunities: A skilled adviser uncovers financial opportunities, addresses risk (such as insurance gaps), and ensures the business is positioned to command a premium at exit. They help business owners become the obvious choice for buyers, just as we strive to be the obvious choice for our clients.
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Risks: If the adviser lacks true business intelligence or mismanages the process, it can damage the client’s most valuable asset — and the trust between client and adviser.
Best Practices for Collaboration
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Engage Early: Involve the value adviser early to spot opportunities and avoid pitfalls.
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Clarify Roles: Define responsibilities clearly to ensure every aspect of the exit — business, personal, and financial — is covered.
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Communicate Openly: Foster transparent communication between all advisers and the client.
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Monitor Progress: Regularly review and adjust the plan to maximize outcomes.
Final Thoughts
Value advisers are catalysts for growth and successful exits. Their ability to both persuade and challenge, combined with a collaborative approach, creates lasting value for business owners and their advisory teams. By focusing on giving, building genuine relationships, and always striving to be the obvious choice, we can ensure every client is positioned for a rewarding exit — and that our practices continue to grow through the power of referrals.
If you’re serious about maximizing your business’s value and creating a waiting list of eager buyers, let’s talk about how the right value adviser can make all the difference.
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