Financial advisors who focus on portfolio returns after a business sale may be leaving significant value on the table, according to wealth managers who specialize in liquidity events. Instead, they argue, the most impactful work happens years before the transaction closes, when tax, estate and liquidity decisions can still be shaped.
The stakes are substantial. The Exit Planning Institute's National State of Owner Readiness research found that nearly 90% of an owner's wealth is typically tied up in the business itself, and 73% of privately held U.S. companies plan to transition within the next decade, representing a roughly $14 trillion transfer. Demand for such planning is already visible: Bernstein Private Wealth Management reported that new business from its business-owner segment in the first quarter of 2026 had already surpassed 30% of its full-year 2025 total.
Why investment returns alone don't prove advisor value
Homer Smith, a certified financial planner and executive director of Integrated Private Wealth, the business-owner unit of Boston-based RIA Integrated Partners, says performance is only one input into how much wealth ultimately reaches a family. The bigger levers, in his view, are decisions on taxes, liquidity and risk that get made—or missed—before a deal closes. "While a great headline number is exciting, it often doesn't translate into maximizing family wealth," Smith said. "A comprehensive planning approach can make all the difference in building the future the owners want for everyone involved."
Getting involved early lets Smith test whether an owner's expectations for the sale are realistic and bring in additional specialists if they aren't. Tax and estate work completed before the transaction, he said, can swing the net proceeds to the owner and family by millions of dollars. "If the advisor is just focusing on the investments after the transaction is done, they are missing critical planning opportunities that add more value to the family wealth than investment expertise could over their lifetime," Smith said.
Kirk Licata, a certified financial planner and founder of Atlanta-based Licata Financial Design, makes a similar case. Portfolio decisions, he said, should come only after an advisor understands a client's goals, balance sheet, cash flow and tax picture. That order matters more for business owners, whose cash flow tends to swing more than a salaried client's. In Licata's framing, investments serve the plan rather than steer it.
What does early exit planning uncover?
Concentration is usually the first red flag. Smith said many owners hold 70% to 90% of their net worth in a single illiquid company, leaving the family exposed to industry disruption, customer concentration, regulatory change and economic downturns. "Early planning also reveals tax and estate issues, liquidity needs, weaknesses in financial reporting, dependence on the owner or key customers, and unaddressed family considerations," Smith said. "The real advantage of starting early is optionality. A problem identified before a sale is underway is something you can plan for. The same problem discovered after an LOI is signed becomes a constraint the owner must live with."
Licata said the most valuable tax and estate strategies often take years to put in place. He pointed to inefficient business structures, estate tax exposure, thin insurance coverage and succession gaps. He also urges owners to work on transferability—clean financial records, durable profits and operations that don't hinge on the founder—because buyers typically pay a premium for those traits, and building them can take several years. "The difference between preparing three to five years in advance versus six months before a sale can be substantial," Licata said.
Jeremiah Barlow, chief commercial officer at Denver-based Mercer Advisors and an estate and tax attorney by training, said big decisions tend to expose existing gaps rather than create new ones. He described an owner planning to sell in five years while relying on an estate plan drafted when the business was worth a fraction of today's value, and a couple nearing retirement who miss the tax planning window that can open once their earned income stops. Older estate documents may also predate current federal rules. The estate and gift tax exemption stands at $15 million per person for 2026, and the One Big Beautiful Bill Act made that level permanent with annual inflation indexing. "In my experience, the costliest financial mistakes are rarely the result of bad decisions," Barlow said. "They're often the result of decisions made without enough time to prepare."
How advisors can coordinate a business sale
An owner approaching a sale may be fielding advice from an investment banker, a CPA, an estate attorney and an M&A attorney, Smith said, each viewing the deal through a specialist's lens. Someone has to make sure those recommendations add up to the outcome the owner actually wants. "A planning-oriented advisor can be a valuable partner in this process," Smith said. "They're not replacing other professionals but helping connect all the pieces for the owner."
Licata said successful clients value their time and often prefer one trusted advisor running point. That coordinating role is central to the exit planning conversations advisors need to have with owners. "I often compare this role to a general contractor overseeing a complex home renovation," Licata said. "The contractor is not necessarily performing every specialized task, but they coordinate the process, keep everyone aligned, and ensure the project moves forward efficiently." He sees that role as durable. "Those who position themselves as the primary guide for major financial decisions will continue to thrive, even as technology and AI make information more accessible," he said.
Planning for life after the business sale is equally critical. Barlow noted that many owners treat the sale as the finish line, but the real work begins afterward—managing newfound liquidity, revisiting estate plans and ensuring the family's long-term goals are met. Advisors who start early can help owners avoid the common pitfall of making rushed decisions under time pressure. For more on how advisors can integrate succession planning into ownership strategy, see this perspective from a Quad-A CEO. And for a look at how business owners are seeking integrated advice, check PNC's survey findings.
