What is Financial Advisory? Definition and Overview
Financial advisory is a general term that could be applied to both the private and corporate worlds.
For an individual managing their personal finances, someone who provides financial advisory services could be a financial planner, or a financial advisor.
These professionals are there to offer planning and investment advice to individuals.
They help people learn how to grow their money rather than simply holding it.
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In the corporate world, financial advisory services are offered by many banks and consulting firms.
Financial advisory services are designed to help a business take a realistic look at their financial objectives and understand how they can be met.
For example, a business might seek out external financial advisory services if they’re in the process of a major merger or acquisition.
Financial advisory services can assist with things like company valuation, which is critical in those types of transactions.
Financial advisory is a term also sometimes seen in government.
Many different bodies have financial advisory boards with the purpose of providing oversight and analysis of the financial issues so that policy makers have a better understanding of the economics involved.
Examples of this include the Environmental Financial Advisory Board. The board works with the EPA and the Detroit Financial Advisory board, a local board designed to provide assistance in financial matters to the city.
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