The importance of an advisory Board

An Advisory Board is made up of independent experts who provide an external view of the company and actively participate in decision-making by advising and proposing ideas, with the main objective of guiding the company to carry out the right actions for the growth, sustainability and profitability of the business. 

In many cases, it also provide the strategic vision of the business and get involved in areas that may have major weaknesses and even make up for the overstretch of owners and managers.  

It is an important ally that companies can turn to in order to create value, expand activity and guarantee the long-term sustainability of the business.  

The participation of professional experts is often remunerated financially and through stock option programmes that align the interests of ownership and board members, thus contributing to the creation of shareholder value.  

Main characteristics of an Advisory Board 

• Help in the configuration of the value proposition: Normally, businesses are born from an idea, to a greater or lesser extent innovative, in markets that are not very mature and with some competitors. Therefore, the Advisory Board makes a detailed analysis of the business in order to extrapolate its differential value, to go to market with greater guarantees of success. In companies in mature phases, the Advisory Board can be a reference point for redirecting the company or for continuing to strengthen the company’s keys to success. 

• Strategic vision: the elaboration of a strategic plan is essential. The Advisory Board must be involved in strategic planning to achieve the objectives set out in the 3-5 year projections, for which a short- and medium-term action plan is drawn up in line with the business plan.  
• Providing ideas or resources: the Advisory Board should have the capacity to provide value to the business in the form of ideas, contacts or by providing the necessary resources to reach the target. This is due to the experience of the Advisory Board experts who are of great value to the project. 
• To make the investment profitable: In addition to helping the businessmen or entrepreneurs in the implementation of the idea and the development of the product or service in the market, the Advisory Board’s premise is to be able to multiply the value of the company. Therefore, to make the investment profitable. 

What does Delicias Capital do as an Advisory Board? 

At Delicias Capital we evaluate business opportunities to select the best ones with the highest growth potential for our pool of investors. 

The fact that our firm is involved in the search of financing for a company means that we will provide what is known as “Smart capital”, that is, we not only provide money, but we make our investors and the owners of the invested company earn a great deal of money through the contribution of value of the professionals of Delicias Capital as Independent Advisors and the implementation of an Advisory Board in which each of its members assumes responsibility for a “value-creating area”.  

The seniority of our directors, their network of contacts, their multidisciplinary experience and their expertise in different fields of knowledge make our participation a decisive aspect in the final objective: the revaluation of the shares. 

Delicias Capital evaluates the fundamental aspects that contribute to the sustainability of the company in which it invests, analyzing personal, family, financial, social and environmental factors.  

The questions to be asked to determine what needs to be done to make the business more sustainable and create value for its shareholders, among others, are: 

1. Have the current shareholders identified their personal priorities and objectives, and is the business aligned with those goals? 
2. Have the shareholders and management taken the time to identify the key business drivers that lead to profit generation? 
3. Is the business strategy aligned to market trends? Is it based on the needs of its customers? Does it take into account the uncertainty of the environment? 
4. Have the managers considered the amount of time they need to spend on the business and the amount of time it will require from current managers in the future?  
5. Can it continue to produce its products and services at adequate profit levels? 
6. Is it able to attract and retain the necessary talent and teams to the company that will help it achieve the desired benefits? 
7. How is the company perceived within the industry and the community? Is value being added to the company’s brand?  
8. Have you considered the environmental and regulatory factors that could seriously affect your business operations in the future? 
9. Is there a succession or exit plan that could maximize the long-term value of the company?  
10. Is there an action plan to improve the company based on the key success factors? 

Each company may do very well for longer or shorter periods of time, but shareholders must keep under control the key issues that have the capacity to take the business off its sustainable path. 

To ensure the company’s viability, the key success factors must be closely monitored. These factors are the indicator to evaluate whether the company is and will continue to be sustainable. As a shareholder, this is one of the priorities.  

As an owner or shareholder, if any of these questions generate doubts, or even some concern, a Board will help you to answer them properly.  

 Conducting a review of the sustainability factors of your business can lead to opportunities for improved financial results, new business growth, greater brand equity, enhanced lifestyle, improved profitability and ultimately a key to creating value. 

AT DELICIAS CAPITAL WE KNOW WHAT OUR INVESTORS WANT AND WE WORK TO MULTIPLY THEIR MONEY