A trifecta event is one where three “winners” emerge at the culmination of a competitive endeavor.
For middle-market business owners, with astute and involved advisors to help, such effect is made possible today.
Wealth Management Advisors often may encounter successful business owner clients who are pondering the notion of sale, but naturally have unanswered questions about the process, about valuation or about how to achieve maximum value. It’s likely these same business owners first turn to their wealth advisors for guidance in such scenarios. This is where having the right connections to call upon can create a trifecta experience and yield substantial dividends to not only the business owner but to the wealth management advisor as well.
Successful Business Owners – The Primary Beneficiary
First and foremost the successful business owner, the client, is the party who stands to prosper the most from such partnership. As a business owner, selling their business is one of the most important and ultimately rewarding financial decisions an owner will ever encounter.
- Investment Diversification – Successfully executed exit strategy can free up substantial amounts of intangible net worth to diversify overall financial risk exposure.
- Reduced stress exit strategy – Partnering with a trusted, experienced investment banker to lead the selling process can offer the client greater piece of mind enabling the business owner to focus on driving the business to achieve maximum value.
- Generational financial stability – Cashing out can generate significant financial benefit to successful business owners establishing a sound financial foundation that can carry generations.
Wealth Management Advisors – The Referring Beneficiary
Wealth management advisors are many times the most trusted and valued financial confidants to many successful business owners. As a trusted financial resource, being able to listen and having the connections to refer the client to for further support and guidance should they decide to proceed, can open new doors and offer significant upside.
- Enhanced client professional value perception – Knowing who/where to turn to for expert sale advisory service deepens the bonds of a relationship built on trust.
- Assets Under Management (AUM) Growth – Of course growing the AUM base is a valued benefit to more than just the asset owners but also enables greater investment horizons.
Merger and Acquisition Advisors – The Enabling Beneficiary
Referral business is the best business of all and can payoff tremendously in creating a mutually beneficial multiplier effect for the business owner as well as the wealth management advisor. The right investment banker can literally make all the difference when it comes to successfully closing the sale of a successful business.
- Referral base business – Successful businesses are built on the networks of referral relationships.
- Home run transactions – “Once in a lifetime” opportunities are truly possible in today’s competitive marketplace offering immense benefit to the successful business owner, wealth advisors and M&A advisors
- Rewarding sense of accomplishment – The simple desire to assist successful business owners in achieving their dreams is what inspires exceptional sell-side advisors.
The wealth management and middle-market merger and acquisition advisory professions vary but also share commonalities in their core objectives. The “trifecta effect” occurs when successful business owners, with help from wealth management advisors, leverage the expertise of quality sell-side M&A advisors. Such relationships can be end up being meaningfully beneficial to all parties.