What are financial advisory consultant services? This is a question ask by many companies that seek the counsel of an advisor who will be able to guide them in their areas of business development. Financial advisory consultants deal with issues such as asset management, debt, budgeting, and how a business handles debt, for instance. They also advise companies on mergers and acquisitions, restructuring of financial statements, short sales and lease options among others. These consultants are often hire by larger companies as part of on-going employee relations initiatives.
The need for financial advisory services has increased in recent years. One of the developments in this field is in the fields of technology, specifically information technology, and the expansion of market sectors beyond traditional banking and lending institutions. In addition, there are a number of changes in the regulatory framework affecting this growing sector. These consultants help corporations and individual clients navigate these regulations to establish and maintain appropriate relationships with these third-party financial institutions.
Corporate Clients Refer to Clients That Have Large Portfolios of Mutual Funds
There are five main segments that specialize in this line of work. One works with corporate clients. Two specialize in working with individual clients. One focuses on investment banking. The other segment specializes in working with commercial borrowers. The fifth segment provides counseling services to government and other agencies as well as independent financial organizations.
Corporate clients refer to clients that have large portfolios of mutual funds, stock investments, bond investments, or money market accounts. Typically, they represent clients with an overall net worth exceeding $100 million. A financial advisory consultant may be employed by one of these larger clients to provide advice to smaller portfolios as well. Some of the larger banks and financial consulting services also employ the services of specialized consultants as they face specific issues in their own markets. Financial advisory consultants, called project managers, have other responsibilities besides developing strategies. Specialize in marketing for their clients, coaching them, and helping them obtain appropriate legal counsel. A few professionals work as financial consultants on a contract basis, working with one particular client to develop an individualized financial strategy
A Specific Plan for Helping Each Client Reach His or Her Investment Objective
Individual clients refer to independent investors who have a specific need that must be addressed through a financial advisor. Typically, these investors have a more specific goal in mind than the larger corporations and financial consultants do. The goal of this type of consultant is to help these investors achieve their investment objectives. In addition, the strategy consultant develops a specific plan for helping each client reach his or her investment objective.
Strategic consultants are employed by investment banking and other financial advisory consultant firms. They are primarily employed to perform research and analysis. The research and analysis are geared toward identifying a specific area of investment concern that requires attention. The strategic consultant then creates a detailed recommendation to the chief executive officer or CFO. The strategic consultant is not involved in all aspects of the business; he/she is limited to advising the CEO on a specific area of concern. Overall, a financial advisory consultant must possess an extensive knowledge of all the main disciplines within financial advising. It would be very irresponsible for such an advisor to provide advice to a client on mortgage related issues if he or she had no knowledge at all about mortgages!
The Company and Are Best Utilized by Smaller Companies That Require More Specialized Guidance
The four main disciplines within financial advisory consulting include finance, accounting, strategic management, and operational perspectives. The finance and accounting professionals perform analysis and research to arrive at an appropriate recommendation for investment strategy. The strategic management professional is the one responsible for actually implementing the recommended investment strategy. While he/she will not make investments, he/she will be responsible for the management of the organization’s assets. Finally, the operational perspective encompasses the managerial side of the firm, as well as the business day to day activities.
In conclusion, the fourth main discipline within financial advisory consulting is functional. This part of the consulting involves advising the managers on the different investment options available to them. This segment is less related to the overall strategies more to the implementation. As you can see, the function of the financial advisory consultant is more related to the execution and management of specific strategies and plans rather than the overall vision of the organization. As such, these consultants are less related to the overall vision of the company and are best utilized by smaller companies that require more specialized guidance.