The Baldwin & Clarke Advisory Services team meets with several investment management companies throughout the year and reads countless market reviews and analyses provided by them and other investment sources. Not surprisingly, we have found a few current topics you may want to discuss with your financial advisor.
While BaldwinClarke Advisory Services, Inc. (“BCASI”) makes use of S&P 500 based ETF index funds to a limited degree in some client portfolios, we remain wary of certain embedded risks in market based investing, the most obvious being the lack of downside protection. Another is that the performance of the most popular indices is disproportionately driven by the largest companies, as measured by market capitalization. So called “cap weighted” indices.
Early in my career, as a commercial banker, I had the opportunity to work with and advise a variety of companies and management teams. My new role at BaldwinClarke gives me similar opportunity and thus I’m excited to have joined the B&C team. As a recovering CEO, it wasn’t long ago that the daily demands of my job precluded much in the way of forward thinking. But forward thinking is necessary for sustained success, and too few of us set aside sufficient time for this critically important task.
What Are You Selling & Why It Matters: Shedding light on the important considerations of an assets vs. stock sale
As a firm that often works closely with entrepreneurs in the transition of their business, be it through a long range exit planning exercise or within the context of a sell-side M&A transaction, we are acutely aware of how complex and nuanced the sale process has become. Owner-operators, management teams, Boards, and more generally, the principal stakeholders need to wrestle with a host of issues. The laundry list includes establishing valuation expectations, defining strategic and cultural fit, securing livelihoods for their valued employees, determining what kind of process they want (auction or otherwise), formulating a buyer universe, pre-transaction due diligence, post LOI due diligence, reps and warranties within the P&S, and so on and so forth.