The Advisory Board Connection That Saved a Business and Led to an Eight-Figure Exit
Carrie Kerpen
Written by Jack Rollins for The Fourth Effect
How one founder's network access through advisory boards turned a cash flow crisis into strategic advantage, and why a founder’s connections can determine their exit potential.
Based on insights from The Fourth Effect's July 10th virtual event "Close the Exit Gap: A Book Talk with Carrie Kerpen"
Takeaway: Most founders treat advisory boards like expensive consultants. Carrie Kerpen's eight-figure exit story proves they're actually your most valuable network access point.
The Connection That Changed Everything
When Carrie Kerpen co-founded Likable Media in 2007, she had the classic founder problem: great clients, terrible cash flow. Fortune 500 companies were paying her on 90-120 day cycles, but she needed to cover payroll for 40 employees immediately.
When cash flow became critical, Carrie needed access to financing solutions that weren't part of her existing network. Her advisory board provided that access through their banking relationships, making introductions and providing credibility that led to a $100,000 line of credit from Capital One.
"You would have thought it was $10 million," she said about that credit line. But the real value wasn't the money, it was learning that her advisors' networks could unlock doors she didn't even know existed.
From Crisis Management to Exit Strategy
That initial banking connection was just the beginning. Over the next fourteen years, Carrie's advisory board networks became the strategic infrastructure that made her exit possible.
When it came time to sell Likable Media in 2021, the connections that led to her eight-figure exit to 10Pearls came through relationships her advisors had built over decades in the industry. Her advisors provided three critical advantages:
Industry Relationships: Access to executives who understood the social media marketing space and could properly value her business.
Credibility Transfer: When respected advisors vouched for her business, it carried weight that no pitch deck could match.
Deal Flow Intelligence: They Understood which companies are actively acquiring and how to position her company for their specific needs.
The Network Gap Problem
Carrie Kerpen, now founder of The Whisper Group and author of "The Whisper Way," has interviewed over 100 exited female founders. The pattern she found was clear: successful exits almost always trace back to strategic network access, not just business performance.
"Finding those women who had done what I wanted to do was like finding a needle in a haystack," Carrie explained. "They were either a huge behemoth unicorn that I would have never had access to, or they just closed their business."
This explains why only 1% of exits come from exclusively female-founded companies. It's not just about business capability, it's about having access to the networks where exit opportunities actually happen.
Strategic Network Building
The most successful founders start building their advisory networks when they're not only focused on growth, but also planning ahead in case they're ready to sell. Thinking strategically about which advisors can provide specific network access throughout the lifecycle of a company:
Industry Veterans: Who know the competitive landscape and potential acquirers intimately
Former Executives: From companies that might be strategic buyers
Investors: Who see deal flow and understand market dynamics
Other Exited Founders: Who can provide introductions and credibility with acquirers
Consider the math: If each advisor brings a network of 500+ meaningful professional relationships, a five-person advisory board can offer access to 2,500+ potential connections.
The Access Challenge
During The Fourth Effect's conversation with Carrie, another founder shared her frustration: her team had built a $20 million business but couldn't get investment bankers interested because the margins weren't "sexy enough."
Carrie's response revealed the fundamental issue: "Start thinking about who the right acquirers are. Talk to them yourselves."
But here's the problem: most founders don't have access to the right acquirers. This is exactly what advisory board networks solve, the right advisors already have relationships with potential acquirers and know how to position your business effectively.
The Fourth Effect Advantage
This is exactly why The Fourth Effect exists. Our AI-powered platform identifies advisors whose networks align with your strategic needs. We understand that the right advisory board connection can be the difference between struggling to find buyers and having multiple acquisition conversations simultaneously.
Because the most valuable advisory board is not only measured by the guidance they give you, but also who they can connect you with.
The question isn't whether your business is sellable. The question is whether you have access to the networks where exit opportunities actually happen.
Ready to build an advisory board that provides the network access your exit depends on? Connect with advisors whose relationships can transform your business trajectory.
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