Business ownership…its personal

Coyne_Headshot-150x150John Coyne, Vice Chairman

We recently held the second call in our Business Owner Transition series with Matt Coyne, author of Straight Talk from the Front Lines and CEO of Brandywine Mergers and Acquisitions.  Matt’s presentation primarily focused on the idea that an advisor must play the emotional therapist as much as the transition planner. He emphasized that an advisor’s role is to help the business owner realize the purpose of owning a tangible asset is to maximize its value, not to infuse it with a personality like a favorite old retainer in Downton Abbey.

Many years ago, I had the opportunity to hear the great Peter Lynch of Fidelity Magellan fame and he said something so profound that it’s been my mantra ever since.  He said, simply, “stocks don’t know you own them.”  He went on to state that stocks don’t care if you’re a Bishop or an axe murderer; they don’t know that your dad worked at the company for 30 years; or, that your grandmother made you swear you would never sell good old Texaco (my mom in this case).  These lessons apply equally here with some variations.

Business Ownership Its Personal

 
Every business owner must consider the impact of a sale on their employees, their customers, and their families.  But, that should be as dispassionate in the analysis as any other valuation they will be conducting.  A buyer, no matter how invested in the industry or this acquisition, is only looking at the purchase for the opportunity it presents to make money for themselves and their investors.  They will happily listen to war stories and personal histories at the closing dinner, but these will never move the EBITDA one dollar.

An advisor needs to help the business owner recognize that the business was a means to an end.  And, it is this reward that should have the personal feelings attached to it because it represents that they, their families and their legacy will enjoy the fruits of their labor.  It is like the young woman in the Liberty Mutual ad who loved but totaled her car “Brad” until the insurance company called and she broke into her happy dance.  So we all need to put on our tap shoes and get our owners out on the dance floor!

For 30 years, Brinker Capital has served financial advisors and their clients by providing the highest quality investment manager due diligence, asset allocation, portfolio construction and client communication services. Brinker Capital Wealth Advisory works with business owners, individual investors and institutions with assets of at least $2 million. To learn more about the services available through Brinker Capital Wealth Advisor, click here.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Even in our Frenzied Industry, Shakespeare’s Voice Shines Through

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer, Brinker Capital

If you’re like me, then you have spent the last few weeks forcing helping your high schooler with his or her summer reading. In doing so, I came across a Shakespeare quote I haven’t seen in a few years, yet seemed apropos to the current climate of our industry—“Cry ‘Havoc!’ and let slip the dogs of war.” (Bonus points if you can name the play this quote is from).

The phrase itself characterizes victorious soldiers seeking spoils from a fallen foe. While poignant, advisors in the throes of the Curian aftermath are feeling like they are on the wrong side of the leash!

At Brinker Capital, I felt the foremost action our team needed to take was to be available to support financial advisors and their clients. Not to hit them over the head with how great we are, but to talk with them and understand how Curian’s offering benefited them and the goals of their clients.  We knew Curian had an impactful offering and sales culture, but we wanted to dig deeper. Our recent hire of Greg Verfaillie confirmed what we already believe at Brinker Capital.  As he expressed in his interview in RIABiz, “In the conversations I’ve been having with advisors, it’s clear this decision is not going to be made on product or platform; it’s about the relationship.”

Greg has given us insight into what attracted advisors to his former firm, the type of support that they found meaningful and what partnership means to them.  This has guided us in effectively providing the right portfolio alternative, strategically communicating so advisors can convey the right message to their clients, and most importantly, being respectful of the process they are engaging in when seeking a successor firm for their clients’ assets.

With our 28-year history and our dedication to understanding the needs of advisors, we are ready to help provide solid support and smooth transitions throughout this frenzied process. After all, as our aforementioned poet once said, “Experience is the teacher of all things.”

The views expressed are those of Brinker Capital and are for informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

A Reliable Partner Dedicated to Delivering Better Outcomes for Advisors and Investors

Widger 4_v2Charles Widger, Founder & Executive Chairman

By now, many of you are aware of Curian Capital’s decision to exit the fee-based business to focus on the core activities of Jackson National Life Insurance Company.  I am sure there are many strong, global, corporate considerations that led them to this determination; nonetheless, it does not alleviate the disruption to impacted financial advisors and investors.

This situation reminds me of the motivations that led me to create Brinker Capital 28 years ago.  When our original parent company, Mutual Benefit, floundered in 1991, it was part of an unfortunate reoccurrence taking place in the financial service industry.  Venerable names like E.F. Hutton, Kidder Peabody and Prudential Bache were also falling by the wayside.  I was determined to make Brinker Capital different.

That is why I built an organization with the laser focus of helping advisors and investors succeed by delivering a premier investment experience that would allow them to achieve the outcomes that they were seeking.  I surrounded myself with professionals who were committed to this same vision, and I’m proud that six of the eight founders are still here today and further, that over 40% percent of my employees have been here for over 10 years.

Brinker Capital is 100% employee-owned. That has allowed us to make thoughtful, long-range decisions without outside ownership staring over our shoulder.  We are proud of our independence and will continue to be independent. Independence empowers Brinker Capital to continue to build this great organization that for 28 years has, and always will, put the advisor and investor first.

I, along with my colleagues, will continue to provide the best in investment management and advisor support.

For more information, please click here to read our latest press release.

Brinker Capital, Inc., a Registered Investment Advisor