One of the questions I hear from business owners is, “Do I need a financial advisor when I sell
my business?”
The short answer is yes.
But I actually think that’s the wrong question.
The better question is this:
Do you have the right financial advisor?
Because choosing the wrong person doesn’t just cost you a little.
It can cost you millions.
The right financial advisor determines what you actually keep after the sale.
And, yes, taxes and successful planning play a huge part.
But I’m also talking about your family.
Your relationships.
Your sense of purpose after the business.
And the way you steward what you’ve spent decades building.
Selling your business is one of the biggest financial events of your life. Yet, in my experience,
owners either under-utilize their financial advisor or don’t talk to them at all about their plans to
sell.
Hi, I’m Ryan Guth.
I’m a CERTIFIED FINANCIAL PLANNER professional, a business owner myself, and the author
of Permission to Exit. My work focuses on helping founder-led business owners prepare for one
of the biggest transitions they’ll ever make.
And if you’re within the next one to two years of a potential sale, I’d encourage you to schedule
a conversation. These decisions are much easier to make before you’re under the pressure of
letters of intent, due diligence, and deadlines.
Let’s start with something that surprises a lot of people.
The term “financial advisor” isn’t really much of a standard.
Almost anyone can call themselves a financial advisor.
Passing the required regulatory exams allows someone to become licensed.
It does not mean they’re qualified to help someone navigate the sale of a business worth
several million dollars.
Those are two very different things.
Here’s an analogy I use.
If you’re planning to climb Mount Everest, who do you hire?
Do you hire an elite marathon runner because they’re in incredible shape?
Heck, no! You hire the Sherpa who’s made the climb over and over again!
The marathon runner is talented.
The Sherpa understands the mountain.
Selling your business is your Everest.
You don’t need someone who’s generally knowledgeable about investing.
You need someone who’s guided people through this specific journey before, and maybe even
lived it themselves.
That brings me to something else I believe.
A CERTIFIED FINANCIAL PLANNER professional should be the minimum standard.
Notice I said minimum.
The CFP designation exposes advisors to tax planning, estate planning, retirement planning,
insurance, investments, and all the pieces that eventually come together during a business exit.
But exposure isn’t the same thing as experience.
Reading the score isn’t the same as conducting the orchestra.
Knowing the tools isn’t the same as using them during a high-stakes transaction.
That’s why experience matters just as much as credentials.
You want someone who’s been there.
Someone who’s helped owners through first exits, second exits, and even conversations where
the owner isn’t sure whether selling is the right decision yet.
Because the work goes far beyond managing an investment portfolio.
Most financial advisors spend the majority of their time working with retirees.
That’s important work.
But it’s a different job.
Most of my clients aren’t trying to retire. In fact, we don’t use the word “retirement” in our
communications with clients.
They’re trying to reach financial independence.
They’ve spent years building successful companies because they enjoy creating, leading,
solving problems, and making an impact.
Selling the business doesn’t mean they’re finished.
It simply gives them the freedom to decide what comes next on their terms.
If you’ve built a profitable company, this is too important for a do-it-yourself approach.
And it’s too important to hand over to someone whose experience is primarily rolling over
401(k)s.
By the way, if this is something you’ve been thinking about, there’s a link below where you can
schedule a conversation with me. Even if you’re still several years away from selling, having the
right plan early creates far more flexibility later.
Now let’s talk about what I believe the right advisor actually does.
A successful business sale involves a surprising number of professionals.
- You have valuation experts.
- CPAs.
- Estate attorneys.
- Mergers and acquisitions advisors.
- Insurance professionals.
- Bankers.
Sometimes even key executives and their assistants become part of the process.
They’re all important.
They’re all experts in their own field.
But someone has to coordinate them all.
Someone has to understand how the tax strategy affects the estate plan.
How the estate plan affects the investment strategy.
How the deal structure affects your family’s future.
How your spouse’s goals affect the decisions you’re making at the negotiating table.
That’s the role I play..
I often describe it as being the conductor.
Every musician may be excellent on their own.
But without someone coordinating the entire performance, you don’t get harmony.
You get a cacophony of noise.
The same thing happens during a business exit.
When everyone stays in their own lane without someone connecting the pieces, important
opportunities get missed.
Sometimes those missed opportunities show up as giving an unnecessary tip to Uncle Sam.
Sometimes they show up in estate planning that should have happened years earlier, leaving
your spouse and kids exposed.
Sometimes they show up in a deal structure that doesn’t actually support the life you want after
the sale.
And sometimes they show up in your closest relationships.
This is one of the most overlooked parts of exit planning - The human stuff.
People assume the biggest challenge is negotiating the purchase price.
In my experience, that’s rarely the biggest issue.
So many owners reach the finish line financially while still struggling personally. Money was
never the problem.
I’ve seen spouses who had completely different expectations about what life after the sale
would look like.
One imagined time to travel.
The other wanted to stay on in a new novel role.
One wanted to slow down.
The other wanted to keep working.
Those conversations are the ones not being had that should be facilitated by the financial
advisor.
Good planning helps bring spouses onto the same page before the money arrives.
Because money has a way of amplifying whatever is already happening inside a family.
I’ve also seen owners lose their sense of purpose after a sale because nobody ever asked what
they wanted life to look like afterward. It’s like going from 100 to 0 MPH in a split second.
That’s why I believe financial planning should always be connected to life planning.
The goal isn’t simply to close the deal.
The goal is to help you transition well.
Financially.
Personally.
And relationally.
Finally, here’s one question I would encourage you to ask any financial advisor you’re
considering hiring:
Are you a CFP? That’s the only designation that matters.
And have you helped multiple business owners navigate successful exits?
Not just investment management afterward.
Not just retirement planning.
The pre-exit process.
The tax planning.
The estate planning.
The family conversations.
The coordination of professionals.
Because that’s the experience you’re hiring for.
So, do you need a financial advisor when selling your business?
Yes.
But more importantly, you need the right advisor.
Someone with strong credentials.
Real experience.
And someone who understands that protecting what you’ve built involves much more than
simply managing an investment portfolio.
I’ve always told people. If you want my tickers, I’ll give you my tickers. I do not and can not hang
my value on my ability to pick ETFs, stocks, and bonds for portfolios. Portfolios are free. Wise
counsel is not.
If your business is profitable and you’re beginning to think about an exit over the next one to five
years, I’d encourage you to schedule a conversation.
We’ll talk through where you are today, where you’d like to be, and whether you’re preparing
early enough to protect what you’ve spent a lifetime building.
No pressure.
Just a thoughtful conversation about one of the biggest decisions you’ll ever make.
Thanks for watching, and I’ll see you in the next video.