What Does an Effective Business Consultant Do?

Posted on: April 4th, 2013

They make your business think at a higher level. They make you aware of issues that you previously you were not focused on. Good business consultants have a wealth of experiences to draw on.

They have built businesses, they have developed new products, and they have entered new markets. Many have been on the finance side where they have lent money to companies or raised capital at small companies

These far ranging experiences provide valuable expertise that they bring to their clients. The best business consultants can immediately recognize weaknesses or gaps at a company, and suggest corrective actions.

Most importantly, the best business consultants measure their success through the success of their client. They work within the organization to bring about positive change, while simultaneously bringing fresh new ideas and resources from the outside.

Organizations have a finite ability to absorb change. Some can absorb rapid change while others are resistant to any change. Through calibrating their action plan properly, business consultants can bring about important change in an enduring way.

Effective business consultants are invaluable to companies. Their specialized knowledge can make a big difference to the growth of a company. Growth companies are wise to look for the following things when assessing a new business consultant:

1. How long have they been consulting?
2. How varied is their background?
3. How strong are their client relationships?
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These things differentiate the truly great business consultants.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.