2.20.25

Goering Center Article: February 2025 Newsletter

Are You Getting The Most From Your Outside Advisors?

We are entering a critical time—the largest wealth transfer in history, with $83 trillion moving from one generation to the next (Financial Times, August 9, 2024). For family and private businesses, this transition isn’t just about wealth; it’s about protecting a legacy and ensuring the right advisory structure is in place.

The Challenge: Too Many Voices, No Unified Strategy

First-generation business owners, executives, and investors typically build their advisory team over time, bringing in financial advisors, attorneys, CPAs, and investment managers as needed. While each plays a valuable role, this approach often results in a disjointed strategy rather than a coordinated plan (Mass Mutual, September 7, 2022).

When advisors work in silos, you can face:

• Time-consuming, fragmented meetings with multiple professionals.
• Overlapping or conflicting financial strategies leading to inefficiencies.
• Missed opportunities due to poor coordination (Innovia Wealth, September 3, 2024).

Without a unified approach, business owners risk losing control over their wealth strategy, which can have serious consequences for their business, employees, and future generations.

Best Practices: A Lead Advisor Can Bridge the Gaps

To avoid fragmentation, many families designate a lead advisor to oversee collaboration between all advisors. The benefits include:

1. A Unified Strategy

A lead advisor ensures each professional’s expertise aligns with the family’s overall financial and business goals, avoiding redundant or conflicting advice.

2. More Efficient and Proactive Decision-Making

Rather than reacting to tax law changes or market fluctuations, a coordinated approach allows for smarter, forward-thinking strategies that can reduce risk and improve outcomes.

3. Building a Stronger Family Governance Structure

An integrated advisory team strengthens family meetings and decision-making processes, helping bridge the knowledge gap between generations and preparing heirs for leadership roles.

4. Strengthening Business Strategy and Growth

A well-coordinated advisory team doesn’t just protect personal wealth—it also improves business decision-making. A lead advisor can:

• Ensure financial, legal, and operational strategies align with long-term business goals.
• Help navigate succession planning, ensuring the next generation is ready to lead.
• Identify growth opportunities, such as new investment structures, tax efficiencies, or risk management strategies.

By integrating business and personal wealth planning, owners create a more resilient and adaptable company that can thrive across generations.

What to Look for in a Lead Advisor

A strong lead advisor should:

• Have experience in coordinating multidisciplinary teams.
• Prioritize collaboration and transparency among advisors.
• Understand the unique needs of private business owners navigating succession, estate planning, and tax strategy.

By taking a structured, coordinated approach, family and private business leaders can protect their wealth, empower the next generation, and ensure their legacy thrives for decades to come.