Cornerstone Business Services, a leading lower middle market M&A firm, recently launched CAPex, the Cornerstone Advisory Partners Exit Program. The program aims to help business owners plan their exit strategy earlier and more effectively by collaborating with their trusted advisors such as financial planners, CPAs, attorneys and business coaches.
Missed opportunities
The CAPex program addresses a common challenge faced by professional advisors: losing opportunities because they weren’t part of the conversation about how a client would exit their business.
“We hear it time and time again,” says Scott Bushkie, founder and CEO of Cornerstone Business Services. “A financial advisor helps a business owner manage their assets, but when the business sells, the advisor finds out secondhand. By that point, the business owner has already been approached by other firms and this long-standing relationship falls apart.”
The CAPex program aims to change this narrative by empowering trusted advisors to start the exit planning conversation early and create a team of specialists to support their clients. The program is designed to help professional advisors improve client outcomes — while growing their own business and strengthening Cornerstone’s referral base.
Value all around
“There’s a direct correlation between proactive planning with a team of specialists and success in the M&A marketplace,” says Bushkie. “These business owners are far more likely to sell their business and close at a higher multiple than their industry peers.”
According to Bushkie, the goal with CAPex is to help professionalize lower middle market M&A and bring together forward-thinking advisors “who truly want to take care of their clients.”
Advisor benefits
By way of example, picture the financial advisor whose average client has an asset value of half a million. In order for the advisor to reach their next $100 million AUM, they’d have to find and onboard 200 people.
“We want to help them get their next $100 million with four clients or 10,” says Bushkie. “It not only makes their company more valuable, but it allows them to provide better service.”
CPAs can also gain by defending their position in tax structuring, audits and value enhancement consulting — services Cornerstone may recommend before a business owner takes their company to market.
CAPex resources
The CAPex program leverages Bushkie’s book, “Finish Strong: Sell Your Business On Your Terms,” and its companion workbook to initiate the exit planning conversation. Trusted advisors can use these resources to have intimate, one-on-one conversations with their business owner clients or conduct workshops to guide their clients through small, actionable steps towards a successful business exit.
As part of the program, advisors also receive articles, M&A quarterly updates, video tutorials and discounted business valuations for their clients. They may also opt to host a private client screening of “M&A,” the first motion picture-rated documentary on the industry, in which Bushkie had a significant role. (See the trailer at MAdecade.com.)
The CAPex program is currently accepting applications for founding members at no cost. Interested advisors can visit CAPexProgram.com to learn more and apply. The program launched in Q1 2024.
With millions of boomer-owned businesses expected to change hands in the coming decade, the CAPex program will play a crucial role in ensuring business owners have the support and resources they need to maximize the return on the sale of their single greatest asset.
Company: Cornerstone Business Services
Innovation: Cornerstone Advisory Partners Exit Program (CAPex)
cornerstone-business.com
