You’re two years from wanting to sell your business, and suddenly everyone has an opinion on who you should hire—financial planners, wealth advisors, CFO consultants, exit planning specialists. The titles blur together, but the roles couldn’t be more different, and hiring the wrong advisor at the wrong time can cost you hundreds of thousands in lost value or unnecessary taxes.
A CFO advisor works inside your business to maximize what buyers will pay, while a financial planner works on your personal side to manage the money after the sale. This article breaks down exactly what each advisor does during exit planning, when to bring them in, how they collaborate (or clash), and which credentials and fee structures actually matter when you’re preparing to sell.
What is a financial planner, financial advisor, and CFO advisor
A CFO advisor focuses on maximizing your business’s value before you sell it, while a financial planner focuses on managing the money after the sale closes. Think of it this way: the CFO advisor works inside your company, analyzing your profit margins, fixing cash flow issues, and building the financial systems that make buyers willing to pay more. The financial planner works on your personal side, figuring out how to invest the proceeds so you can retire comfortably or fund your next venture.
The terminology gets confusing because people use “financial advisor” as a catch-all term for anyone giving money advice. A financial planner typically holds a CFP (Certified Financial Planner) credential and creates comprehensive plans for retirement, estate planning, and personal investment strategy. Financial advisors might offer planning services, but many focus primarily on managing investment portfolios. Investment advisors specifically buy and sell securities on your behalf.
CFO advisors operate in a completely different world. They analyze business metrics like gross margin, customer acquisition cost, and monthly recurring revenue. Most come from accounting, corporate finance, or investment banking backgrounds, often holding CPA licenses or MBAs rather than CFP designations.
Financial planner vs financial advisor vs investment advisor
Financial planners create roadmaps for your entire financial life—retirement savings, college funding, insurance coverage, tax strategy. They typically charge flat annual fees or hourly rates for their planning work. Financial advisors often focus more heavily on investment management, charging a percentage of the assets they manage (usually around 1% annually). Investment advisors have an even narrower focus: they manage your portfolio, deciding which stocks and bonds to buy and when to rebalance.
All three work on your personal finances, helping you manage wealth you already have. None of them typically dive into your business operations or build financial models showing how your company can grow from $5 million to $10 million in revenue.
Financial consultant vs financial advisor vs CFO advisor
“Financial consultant” can describe almost anyone offering financial advice, from insurance salespeople to corporate strategy experts. Financial advisors manage personal wealth and investments. CFO advisors work exclusively on business strategy—they’re not planning your retirement or picking mutual funds for your portfolio.
A CFO advisor helps you understand whether hitting $10 million in revenue is realistic when you’re currently at $5 million. They map out exactly what that growth requires in terms of headcount, marketing spend, and working capital. They identify the bottlenecks slowing you down and forecast your cash needs for the next 12 to 36 months.
Key differences during exit planning
When you’re preparing to sell your business, a CFO advisor and financial planner address completely different questions. You’ll likely work with both, but at different times and for different reasons.
Strategy scope and forecasting depth
CFO advisors build detailed business projections that forecast revenue, expenses, and cash flow three to five years out. These aren’t guesses—they’re grounded in your historical performance, customer retention rates, and specific growth initiatives. Buyers scrutinize these projections during due diligence, and weak assumptions can tank your valuation or kill the deal entirely.
Financial planners work backward from your personal goals. They ask: what lifestyle do you want after the sale? How much annual income will that require? What investment returns can you realistically expect? Their models focus on personal cash flow—whether $8 million in proceeds will last 30 years or run out in 20.
The CFO advisor asks how to make your business worth $15 million. The financial planner asks whether $10 million after taxes lets you maintain your lifestyle indefinitely. Both questions matter, but they require entirely different expertise.
Tax planning sophistication
Both advisors handle taxes, but in completely different domains. CFO advisors focus on business tax strategy—whether you operate as an S-corp or C-corp, cost segregation studies that accelerate depreciation, R&D tax credits for product development, and whether to structure the sale as an asset purchase or stock sale. A CFO advisor might recommend converting to a C-corp two years before selling to qualify for Qualified Small Business Stock (QSBS) treatment, potentially eliminating federal taxes on up to $10 million in gains.
Financial planners handle personal tax optimization after the sale—managing capital gains, timing Roth conversions, structuring charitable donations, and planning estate transfers. They work with estate attorneys to set up trusts that minimize estate taxes and protect assets for your children.
The tax planning happens on parallel tracks: business taxes before and during the transaction (CFO advisor territory) and personal taxes after the transaction (financial planner territory). Both dramatically affect how much you keep, but they require different technical knowledge.
Investor and buyer communication
CFO advisors prepare the materials buyers examine during due diligence—normalized EBITDA calculations showing what your profit looks like without one-time expenses, customer concentration analyses proving you’re not dependent on a single client, and quality of earnings reports that explain any unusual items in your financials. They sit in meetings with potential acquirers, answer questions about your margins, and defend your growth projections.
Financial planners don’t talk to business buyers. Their work begins after you sign the purchase agreement and the money hits your account. They coordinate with your CPA to understand the tax implications of the deal structure, then build an investment strategy for the proceeds.
If private equity firms are touring your office, you want a CFO advisor in those meetings. If you’re interviewing wealth managers to invest your exit proceeds, you want a financial planner.
Deliverables that directly boost valuation and cut taxes
The outputs from a CFO advisor look nothing like what you get from a financial planner. CFO deliverables directly impact what buyers pay and how much you keep after taxes.
1. Live KPI dashboards and forecasts
CFO advisors build real-time dashboards tracking the metrics buyers care about most—monthly recurring revenue, customer lifetime value, customer acquisition cost, gross margin by service line, and cash conversion cycle. These dashboards update automatically as accounting data flows in, giving you instant visibility into performance trends.
Buyers pay premiums for businesses with clean data and predictable performance. A SaaS company showing 18 consecutive months of MRR growth with detailed customer cohort analysis commands higher multiples than one with incomplete spreadsheets and missing records. Financial planners create personal financial statements and retirement projections, not business intelligence dashboards.
2. Tax arbitrage playbook
CFO advisors specialize in advanced business tax strategies that go beyond basic deductions. Cost segregation studies accelerate depreciation on commercial real estate, creating paper losses that offset current income. R&D tax credits generate cash refunds for software development or product innovation work you’re already doing. Entity restructuring shifts income between entities to minimize overall tax liability.
At Bennett Financials, we approach tax planning as a growth accelerator. We’re not paying $100,000 to save $30,000 in taxes—we’re structuring strategies that save $200,000 while positioning the business for higher valuation. Financial planners handle personal tax optimization like tax-loss harvesting and qualified charitable distributions, which matter after the exit but don’t increase business value.
3. Deal-ready financials and due diligence binder
Buyers request years of financial statements, tax returns, customer contracts, and supporting schedules during due diligence. CFO advisors prepare comprehensive packages that answer buyer questions before they’re asked—normalized financials that add back owner perks and one-time expenses, customer analyses showing revenue diversification, and working capital calculations clarifying what cash the business needs to operate.
This preparation dramatically shortens due diligence timelines and reduces the risk of buyers discovering issues that reduce your purchase price. Financial planners prepare personal financial statements for estate planning or mortgage applications, but they don’t create the business packages that buyers require.
Credentials and fiduciary standards
Different certifications signal different expertise areas and legal obligations. Understanding these credentials helps you evaluate whether an advisor has the right background for your specific situation.
CFP, CFA, CPA, and fractional CFO backgrounds
The CFP designation requires extensive coursework in personal financial planning, insurance, estate planning, and investment management, plus a comprehensive exam and ongoing education. CFPs focus on retirement planning, college funding, and personal tax strategy. The CFA designation emphasizes investment analysis and portfolio management, requiring three progressively difficult exams covering economics, financial reporting, and asset valuation.
CFO advisors typically come from different backgrounds. Many hold CPA licenses, which require passing the Uniform CPA Exam and meeting state experience requirements. CPAs understand GAAP accounting, tax law, and financial reporting—critical for preparing auditable financials and navigating complex tax situations. Others hold MBAs with finance concentrations, often with years in corporate finance, investment banking, or controller roles.
At Bennett Financials, our CFO advisors combine technical accounting expertise with business development focus. We’re not just cutting costs—we’re building growth models showing exactly how to scale from $5 million to $10 million, identifying the specific constraints (people, systems, capital) you’ll face along the way.
Fiduciary vs suitability in exit advice
The fiduciary standard requires advisors to act in your best interest at all times, putting your interests ahead of their own. Registered Investment Advisors and CFPs operate under fiduciary duty when providing investment advice, meaning they can’t recommend products paying them higher commissions if better alternatives exist.
However, the fiduciary standard doesn’t apply to business strategic advice. CFO advisors provide consulting services, not investment advice, so they’re not held to the same legal fiduciary standard. The relationship is governed by the consulting agreement rather than securities regulations.
Both advisor types can act ethically and in your interest, but the legal frameworks differ. Understanding how each advisor gets compensated helps you evaluate whether their incentives align with your goals.
Typical fees and ROI comparison
Fee structures vary widely based on complexity and advisor experience. Understanding how these advisors charge helps you budget appropriately and evaluate whether the investment makes sense.
AUM and flat-fee models for planners
Financial planners typically charge in three ways: assets under management (AUM), flat fees, or hourly rates. AUM fees usually range from 0.5% to 1.5% of invested assets annually. If you invest $5 million with an advisor charging 1%, you’ll pay $50,000 per year. This model aligns advisor compensation with portfolio performance—they earn more as your assets grow.
Flat-fee arrangements might charge $5,000 to $15,000 annually for comprehensive planning services, regardless of asset size. This works well if you have significant assets but want to minimize ongoing fees. Hourly fees typically range from $200 to $500 per hour for project-based work like reviewing pension buyout offers.
Monthly retainer and success fee for CFO advisors
Fractional CFO services typically run on monthly retainers ranging from $3,000 to $15,000 depending on company size and complexity. A $5 million revenue service business might pay $5,000 to $7,000 monthly for strategic CFO services including forecasting, KPI dashboards, and monthly strategic reviews.
Some CFO advisors structure success-based fees tied to specific outcomes—raising capital, completing an acquisition, or hitting certain valuation milestones. At Bennett Financials, we act as the quarterback for your financial journey, coordinating tax strategy, forecasting, and growth planning in an integrated approach.
The ROI calculation differs dramatically. A financial planner’s value comes from avoiding costly mistakes and optimizing tax efficiency—harder to quantify but potentially worth millions over a lifetime. A CFO advisor’s value shows up directly in business performance: higher margins, better cash management, and ultimately a higher exit valuation.
When to bring each advisor onto the exit timeline
Timing matters enormously in exit planning. Bringing in the right advisor too late can cost you hundreds of thousands in lost value or tax savings.
T-24 months: Strategic CFO modeling
Most business owners begin serious exit planning two to three years before they want to sell. This timeline gives you runway to fix operational issues, improve financial performance, and implement tax strategies requiring time to mature.
A CFO advisor engaged 24 months before your target exit date identifies the specific value drivers buyers in your industry care about most—recurring revenue, customer retention rates, or gross margin improvement. During this phase, the CFO advisor builds financial infrastructure supporting higher valuation: cleaning up your chart of accounts, implementing accrual accounting if you’re still on cash basis, creating monthly financial close processes, and developing forward-looking forecasts.
This is also when sophisticated tax planning happens. Converting from an S-corp to a C-corp to qualify for QSBS treatment requires a five-year holding period, so that decision happens well before you’re ready to sell.
T-12 months: Planner optimizes personal wealth transfer
Financial planners typically enter 12 to 18 months before your anticipated exit, once you have reasonable clarity on likely sale price and timing. At this stage, they work with your estate attorney to structure trusts, plan charitable giving strategies, and coordinate gift tax exclusions.
The financial planner also stress-tests your personal financial readiness. If you’re expecting to net $8 million after taxes but your lifestyle requires $500,000 annually, that’s a 6.25% withdrawal rate—likely unsustainable over a 30-year retirement. Better to know this a year before closing so you can adjust expectations or hold out for a higher offer.
Post-close: Ongoing investment management
After the transaction closes and the wire hits your account, the financial planner’s work shifts into ongoing wealth management. They help you avoid keeping too much in cash (losing purchasing power to inflation) or investing too aggressively (risking losses you can’t afford).
The CFO advisor’s relationship typically ends at closing, though some stay engaged for transition services if the buyer requests seller involvement for 90 to 180 days post-close.
How the advisors collaborate or conflict
In an ideal scenario, your CFO advisor, financial planner, CPA, and attorney work as a coordinated team. In reality, coordination challenges often arise around ownership of the financial model and tax strategy.
Ownership of the financial model
The CFO advisor owns the business financial model—revenue forecasts, expense budgets, cash flow projections, and valuation scenarios. This model drives business decisions: can we afford to hire three more engineers? Do we have enough cash runway to weather a slow quarter?
The financial planner owns the personal financial model—retirement income needs, investment returns, withdrawal rates, and estate projections. This model drives personal decisions: can you retire at 55 or do you work until 60? How much can you gift to children without jeopardizing your security?
The models intersect at one critical point: expected after-tax proceeds from the business sale. The CFO advisor estimates what the business will sell for; the financial planner determines whether that amount meets your personal goals.
Coordinating tax strategy
Tax planning requires tight coordination because business tax decisions affect personal tax outcomes and vice versa. If your CFO advisor recommends an S-corp to C-corp conversion for QSBS treatment, your financial planner and CPA need to understand how that affects your personal tax situation in the interim years.
At Bennett Financials, we integrate tax planning directly into our CFO services, ensuring business tax strategy and growth planning work together. We’re not just saving taxes—we’re using tax efficiency as fuel to grow the company, keeping more cash in the business to fund expansion while minimizing lifetime tax liability.
Decision rights on capital allocation
A common friction point: who decides how to allocate capital? Your CFO advisor might recommend reinvesting $500,000 into sales and marketing to accelerate growth. Your financial planner might suggest taking that same $500,000 as a distribution to diversify your personal wealth and reduce concentration risk in the business.
Both perspectives have merit. Reinvesting could increase business value by $2 million, far exceeding investment returns in a diversified portfolio. But keeping all your wealth tied up in one business creates enormous risk.
Red flags and common misconceptions
Exit planning brings out advisors making bold promises and business owners making costly assumptions. Knowing what to watch for helps you avoid expensive mistakes.
One-size-fits-all advisor promises
Be skeptical of any advisor claiming expertise in both sophisticated business operations and comprehensive personal wealth management. A CFO advisor who truly understands SaaS revenue recognition, working capital management, and business valuation probably hasn’t spent years mastering estate planning strategies and retirement income distribution techniques—and vice versa.
Look for advisors who clearly define their expertise and readily refer you to specialists for work outside their domain. The best CFO advisors have strong relationships with financial planners, estate attorneys, and CPAs, coordinating as a team rather than trying to handle everything themselves.
Overpaying to save on taxes without ROI
Tax planning can deliver enormous value, but not all tax strategies make economic sense. Some advisors sell complex structures that cost more to implement than they save in taxes, or they push strategies creating tax savings but destroying business value in the process.
Always ask: what’s the all-in cost of this strategy, and what’s the expected benefit? At Bennett Financials, our approach focuses on strategies where you’re paying $100,000 and saving $200,000 in taxes, using that efficiency to fuel growth rather than just minimizing the current year’s tax bill.
Bennett Financials navigator framework for growth and exit clarity
At Bennett Financials, we see ourselves as the navigator on your business journey. You’re the captain, setting the destination—maybe that’s $10 million in revenue, maybe it’s a successful exit in three years. Your COO manages the crew and day-to-day operations. Our role is to chart the course: mapping exactly what you’ll need for capital, how many people you can afford to hire, and identifying the risks ahead.
We take all your financial data and build out the precise path to your goal, then report back monthly on whether you’re on track or off course. When obstacles appear—a key client churns, a competitor drops prices—we present you with two or three paths around the obstacle, complete with the financial implications of each choice.
This approach differs from traditional accounting firms focusing on compliance and historical reporting. We’re not here to tell you what happened last quarter—we’re here to show you what’s possible next quarter and how to get there.
Talk to an expert
If you’re a growth-focused business owner thinking about exit planning, schedule a consultation with Bennett Financials. We’ll analyze your current financial position, identify the specific constraints holding you back, and map out the path to your goals.
FAQs about choosing financial advisors and CFO advisors for exit planning
Can one person act as both financial planner and CFO advisor during exit planning?
While some advisors claim dual expertise, the skill sets rarely overlap effectively. A CFO advisor spends their time analyzing P&Ls, building forecasts, and optimizing business operations. A financial planner focuses on retirement income planning, investment allocation, and estate strategy. You’re better served by specialists who excel in their respective areas and coordinate effectively than by a generalist who’s mediocre at both.
What is the difference between a financial advisor and CFO advisor for business owners?
Financial advisors focus on personal investment management and wealth planning—helping you grow and preserve wealth you already have. CFO advisors concentrate on business financial strategy and growth planning—helping you build wealth by making your business more profitable and valuable. Business owners typically work with both, but at different stages: CFO advisors during growth and exit preparation, financial advisors after the exit to manage proceeds.
How does offering equity to a fractional CFO advisor change the advisory relationship?
Equity compensation aligns the CFO advisor’s interests with business growth and exit value, creating partnership dynamics rather than traditional fee-for-service relationships. A CFO advisor with equity benefits directly when business value increases and loses if it declines. However, equity arrangements also create complexity around valuation, vesting schedules, and decision-making authority. Some business owners prefer the cleaner dynamic of cash compensation, where the advisor provides objective guidance without their own financial stake influencing recommendations.
