We have an informal advisory board of old business friends, but we need strategic guidance to prepare for a sophisticated transaction. How do we upgrade our advisory board into a highly functional exit-focused resource that helps us execute our exit plan runway?

Question

Tyler Smith · Accepted Answer

An informal advisory board of friends is great for casual advice, but they are rarely equipped to guide you through a complex exit transaction. To prepare for a clean exit, you must upgrade this group into an objective, exit-focused resource.

Start by defining the specific expertise you need on your exit runway. This typically includes a seasoned M&A attorney, an investment banker or broker, a tax strategist, and an exit planning specialist. These advisors should understand the Step by Step Exit framework and how it integrates with your business.

Disband the informal group and recruit professionals who have successfully navigated transactions in your industry. Establish a formal meeting cadence, setting clear expectations for their involvement. Instead of vague, open-ended discussions, bring specific operational and financial bottlenecks to your board meetings.

Use your V/TO® and financial reports to provide them with transparent, accurate data before each meeting. Ask them to critique your exit readiness, pressure-test your numbers, and challenge your operational assumptions. This level of professional oversight forces you to maintain strict corporate governance and keeps your leadership team accountable. By professionalizing your advisory board, you gain a powerful team of allies who can spot hidden liabilities and help you make strategic decisions that maximize your valuation when you eventually go to market.