M&A: Wealth Advisors in the Sale of a Business

Selling a business through an M&A deal can generate a great deal of personal wealth, and working with a trusted advisor to help manage and shepherd that wealth is an important consideration during the M&A process.

A wealth advisor is a person who manages other people’s money. Most financial services firms have a specific department or division designed to work with wealthy people. These advisors consult their clients on a wide array of issues, ranging from investment choices to estate planning to tax strategies.

An advisor worth his salt can advise Seller on a preferred structure, one that minimizes taxes and/or moves wealth to the next generation.

Sellers should sit down with a wealth advisor before embarking on the M&A process, especially if they’re contemplating retirement. As amazing as it may sound, Seller may discover that the lifestyle he wants to lead post-sale requires less money than he previously thought with some specific planning rather than back-of-the-envelope guesswork.

Pick your wealth advisors very carefully. The dirty secret of many firms, even the largest, most well known, household name firms, is much of the work is done by junior people who don’t have any wealth, don’t know much about investing, and may not even care that much about your goals and plans and desires.

Because managing wealth isn’t so much about your future but rather the future of your children, grandchildren, and charities — your legacy, in other words — choose your advisors carefully.

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