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The Entrepreneurial Lifecycle:

As the New Year turns. I wanted to touch base on the lifecycle that we all go through and how to optimize the benefits of working with an Advisory firm like Intellectus Partners.

There is a difference between investment management and Wealth Management. There is an even bigger difference in advising Entrepreneurs and execs in high growth companies and non-entrepreneurs regarding their finances. Most often clients come to Intellectus Partners at or near an exit and expect the firm to just step in and work it’s “magic”.

We can certainly help and add value at that point but wealth management for those in an entrepreneurial world ideally should line up temporally with their business lifecycle. When someone comes to us near their exit or IPO they are often limiting their outcomes. They have also reduced the value creation that comes from comprehensive Wealth Management to returns on invested capital, or just investment management itself. That is but one component of Wealth Management, not the whole thing, and often not the most impactful.

It is imperative that successful execs and entrepreneurs consider the sheer magnitude of the responsibility of managing their own large pool of wealth. Managing your wealth is very similar to running a business itself. Organization, process and resources should not be overlooked. In fact, these are the base components of a well thought out plan. Clients should take the time to consult with a properly suited Wealth Management firm as early as possible if they think some form of change may be coming. Aligning yourself with a firm that has broad and diverse group of partnerships delivering diverse resources such as custodians, strategies, investment products and vehicles, research, Trust Services and back office solutions and can integrate all of this into a comprehensive solution can be invaluable.

When a properly educated client engages a Wealth Management or Multi Family office firm, they do it at the earliest moment possible. One identifiably “right” time to consider this, is that “moment” where you begin to see some change with your enterprise and/or career. Capitalizing on these “Life Events” are very important to optimizing your outcome. It could be related to personal or familial changes in the person’s "life events". It could be when they are considering leaving their existing job or when they plan on launching or joining a newco. At these times there are long term planning considerations that need to be executed along with their new business plan. In fact, how you structure a newco including the corporate structure, method of issuing shares, how your shares are held, tax structures, holding entities and the like all can have an incredibly meaningful impact on your future financial outcome. Each of these require detailed analysis and evaluation of possible strategies in the Wealth plan.

A firm like Intellectus that works with serial entrepreneurs and family offices can provide valuable insight and ideas to you during this time. Failing to do so is akin to hiring a generalist lawyer to advise you on a complex M&A transaction - specialization is critical. As the serial entrepreneur hopefully goes from one venture to his/her next, the relationship, resources and ongoing dialogue with the trusted advisor produces enormous benefits. It is the only way that the advisory team can truly identify these unique opportunities and how to apply innovative resources for you to capitalize on and achieve your personal financial goals.

As we look upon another new year in 2017, we are all likely to see opportunities and challenges. Just remember that your partners at Intellectus are here to advise and consult with you on your goals, new endeavors and challenges. Please be sure to reach out to ask questions and allow us to help you where we can so that you can seize these opportunities and reach your goals.

We are here for you.

Wishing all a happy, healthy and very prosperous New year!!!