Merger and Acquisition advisor
Mid Market Capital Inc.
If this recent market meltdown has taught us anything it is to make sure you are diversified over several investments and asset classes. Would you recommend that a client put 80 percent or more of his assets into a single investment? Of course not, but a large percentage of your clients actually have that level of concentration.
Business owners are the single largest affinity group for the financial advisory profession, often eclipsing 50 percent of an advisor’s client and prospect base. Your clients who own businesses likely have 80 percent or more of their family’s net worth tied up in their business. On top of that, privately held businesses are illiquid assets often requiring one to two years to sell.