We have not visited the subject of Advisory Boards since 2022 (Deal Note® 14, May 3, 2022). Given the many ways they can create value, it is time for us to revisit them again.
In 2022, we discussed how an Advisory Board can help your business prepare for a smooth transition from private to institutional governance, when you sell the business. In today’s Deal Note®, we will focus on how an Advisory Board can help your management team prepare for Management Presentations that will be held during the sale process (we discussed Management Presentations in Deal Notes® 23, 79, and 132).
By holding formal quarterly meetings with your Advisory Board and your management team, you enable your team to practice and develop their presentation skills, in a low-risk environment. At every Advisory Board meeting you should have each of your key managers present quarterly reports on their functional areas (such as accounting, sales, operations, and human resources). You should encourage your Advisory Board members to challenge your managers and help them get better at: i) preparing their written presentation materials, ii) anticipating questions, and iii) thoughtfully answering questions they did not anticipate.
Over the past 24 years, we have seen a dramatic difference in the quality of management presentations during a sale process between: a) the management teams who are experienced in presenting to their Advisory Boards on a regular basis and b) those who are not. As with most things in life, practice makes perfect. Management presentations are no different.
If you want any help developing a vision for your Advisory Board, we would be glad to share with you the best practices that we have seen over the years.
Have a great day everyone,
Bill Alderman
Founding Partner
