Even before an owner transitions the business to the next owner or liquidates the assets. Identifying business risks is the first step toward building significant value. They must understand what risks are lurking in the owner’s business and any personal risks associated with it. Some businesses have family operating in the business, but even if it is not a “family business” the sale impacts all family members.Ī Risk Advisor works with a business owner to mitigate and manage risks associated with the business and their personal needs. When an owner sells likely their largest asset, it greatly impacts the family. They assist in managing disputes between the family and the business. Some owners will set up a family council which acts similar to a business board of advisors. Additionally, 12% of owners consider their spouse to be their most trusted advisor. 84% of owners stated they meet with their family annually to discuss the business.

Everything the business owner does, impacts the family directly and the families of their employees, partners, and vendors. These advisors can also be brought into the process early, before a sale, to give additional advice to the owner who may be thinking about a third-party sale in the longer term.Īn owner’s family directly impacts their business decision-making. They position the company for sale, managing the entire M&A Process including deal preparation, negotiating terms and price of the acquisition or merger, and arranging the sale of the company itself. They can also help their client raise money or work on the buy side. That third party could be a strategic corporate, financial buyer, private equity group, or public offering. These advisors are typically used if the business owner is going to sell to a third party, considered sell-side work. They play a role on an owner’s transition team, but should not be an owner’s only resource during their exit. The Board of Advisors will provide the owner and their family with valuable advice from individuals with years of experience working with other businesses, both corporate and family. However, 8% indicated they used this Board of Advisors as their transition team, which is not recommended by EPI. Our most recent Exit Planning Institute research shows that 91% of owners have a dedicated Board of Advisors. This attorney is likely different from the general business attorney described above and is more specialized. Of those owners who had a formal transition team, 33% indicated an estate planning attorney was engaged, according to the latest Exit Planning Institute report. Their Estate Planner is instrumental in the creation of their Will, any Trusts for their children, and in organizing their charitable contributions. According to recent research conducted by the Exit Planning Institute, the Financial Advisor is seen as the owner’s most trusted advisor and as such, sits close to the owner on their transition team.Īn Estate Planner helps you maximize a business owner’s wealth effectively while minimizing estate taxes. They remain on the owner’s team long after the exit has occurred. The Financial Advisor will ask all the pertinent personal and financial questions to the owner. Whether that be a sale to a third party, private equity, a family transition, or any other exit option. Meet the key members of a business owner’s team and how they benefit the owner in their exit planning process.īusiness owners that surround themselves with a holistic team of advisors and professionals will be more successful in their transition.

On an owner’s team, advisors must work collaboratively to manage the owner’s business, personal, and financial goals. Accountability is the backbone of any successful team.

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