In this episode of Deal Talk with 7MA Tripp Davis, one of the partners at 7 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:

• • Entrusted by David York [13:17] – 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.