What Can You Expect A Corporate Advisor To Do For Your Business?

Corporate advisors are more than just the people you call when you want to sell. They are essential in this area; they’re the professionals you can depend on to optimise your business’s overall productivity and profitability. So, how exactly does a corporate advisor operate in the business to achieve results?

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In this article, we’ll pinpoint the core duties of a corporate advisor so you can better understand how they should work within your business and whether it would be viable for you to hire one.

Core duties of a corporate advisor

When it comes to helping companies optimise their business, the territory of being a corporate advisor comes with a wide assortment of different duties. Here are some of the core duties that you can expect a corporate advisor to be responsible for in your corporation or business:

1. Financial management

Successful businesses can’t rely on sporadic success; they need financial stability, so naturally, one of the primary duties of a corporate advisor is to oversee and enhance financial practices. This can include forecasting expenses and future revenue, implementing cost-saving techniques, and reviewing the company’s financial statements.

2. Business strategy and planning

Another important aspect of being a corporate advisor is analysing the financial health of the company in depth and providing effective strategies and planning to help it grow. To do this, corporate advisors will analyse the company’s current market position, growth potential, and current health, as well as advice on how to move forward with long-term strategies. This also includes identifying opportunities for the company to expand, diversify and improve operational efficiency.

3. Business valuation

Corporate advisors play a crucial role in buying and selling companies, as they are also responsible for determining the business’s market value. They’ll go about doing this by analysing everything from a business’s assets to cash flow to the competitive landscape and forecasting its future revenue potential. Without a proper valuation, there’s no surefire way to know if you’re putting your business on the market at the right price.

4. Exit strategy development

Along the same lines as selling, developing an exit strategy that maximises value while considering all the tax implications and other regulatory requirements is one of the duties of a corporate advisor. This is essential for any owners who are planning to sell or leave their business.

5. Risk management

One of the reasons why corporate advisors are so beneficial to a company is because of the risk management they provide. In order to achieve financial success, you always need to consider your opportunities and strengths and, if not more importantly, the risks and weaknesses. Corporate advisors are trained to identify and mitigate risks for the sake of a business’s long-term success.

6. Merger and Acquisition Advisory

Another core duty of a corporate advisor is to provide advisory services throughout the mergers and acquisitions process. They are the professionals responsible for conducting research for the merger or acquisition, preparing the financial documentation, and structuring the transaction in a way that best benefits you as the client.

When should you consider hiring a corporate advisor?

You don’t have to be in hot water or selling your business to hire a corporate advisor because they’re a pretty valuable team player throughout every step of running your business. However, there are certain circumstances where it’s definitely more helpful to have a corporate advisor around, and these include:

Mergers and acquisitions – When merging with or acquiring another company, corporate advisors are equipped to handle the complexities of these kinds of deals.
Selling your business – if you’re preparing to sell your business, they will help increase its valuation and streamline the sale process.
Expanding your business – for businesses that want to expand into new markets or launch new products, corporate advisors can prove to be incredibly beneficial as they will examine the sustainability and financial viability of your plans and improve them
Undergoing financial restructuring – corporate advisors are also beneficial for companies experiencing financial distress. They can analyse the financial health, risks, and problematic areas of the business. After a thorough analysis, they can offer solutions for growth financing, cash flow optimisation, and debt management.

Regardless of whether your business is struggling, thriving or looking for new opportunities, hiring a corporate advisor can benefit it in various ways. So, if you’re looking to hire a corporate advisor, you can find one at Melbourne Corporate Advisors.

Final Thoughts

Hiring a corporate advisor can do wonders to optimise a company’s productivity and profitability, and their success hangs on performing a range of different duties that can directly impact a business’s financial stability and value. Therefore, it’s essential that you understand what their duties are so you are aware of what they need to be doing to aid your business.