In this episode of Deal Talk with 7MA Tripp Davis, one of the partners at Seven Mile discusses the value of wealth management with Rone Reed, senior vice president at US Trust. Rone addresses the challenges that often take place after an M&A transaction for business owners where a shift in liquidly and structure occurs when one going from running a business to managing wealth within a family.
Rone brings over ten years of experience in wealth management at US Trust and has specific expertise planning with individuals or families who are contemplating a merger or acquisition. These experiences allow Rone to speak about the challenges of wealth planning for clients who find themselves in the M&A world.
Rone discusses how new wealth is created in this economy, and the role values and outlook on wealth play in dealing with the consequences of not planning appropriately prior to a transaction on a family. Rone also talks about what types of advisors a person should have on their wealth planning team and the value of using advisors who focus specifically on M&A issues. Finally, Rone wraps up this episode by talking a little about opportunity zones, some dangers of them and the clever opportunities they present for clients after an M&A event.
If you are interested in the challenges and impact that selling a generational business can have on an individual or a family from a wealth management perspective, this conversation is for you.
Quotes:
Rone on the wealth management questions he most often gets asked by M&A clients:
Can we afford to sell the goose that's laying the golden egg? And if we do, how do we do this without messing up our children? [09:21]
Rone on the biggest underestimation that owners have going into M&A transaction:
I think they're totally unprepared for the emotional impact of the process and the transaction itself. [11:25]
Rone on the impact of values:
We find is that if everybody else in the family understands the perspective they have on wealth, it helps the process along. [18:32]
Rone on what is most important in selecting advisors:
I think the most important thing is experience, direct specific experience in the M&A space. And the second is chemistry. [24:22]
Next Episode:
Look for our next episode on March 18th, where we dive into more exciting topics in the M&A space.
Links mentioned in this episode:
A book that frames the concept of wealth, beyond just money, in terms of knowledge, investment of time, and values in business and family.
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Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC that provide investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.
