How can a family office attract better deal flow?
Short answer: Richard C. Wilson's coconut water example connects a food and drink expo, a magazine, and a distributor database to a growth pitch for sellers. It shows how a family office's operating assets can give a business owner a reason to take its call.
Richard C. Wilson presents a Family Office Podcast webinar about why wealthy families use family offices to attract deals and capital partners.
Richard on documented deal criteria
Richard says a family office should document its target geography, industry, profit size, valuation range, team requirements, control needs, and source credibility. He says shared criteria help the team focus and counterparties send relevant deals.
Richard on niche branding
Richard says a family office name tied to a focus, such as biotech, tells people what deals to send. He says that focus can help potential partners understand the office's expertise and respond to its outreach.
Richard on five deal channels
Richard names communities, positioning, proactive outreach, acquiring choke points, and operating in the target industry as ways to improve deal flow. He says combining them can bring better deals than relying only on local investor contacts.
Richard on strategic capital
Richard says capital partners should bring something beyond money, such as industry connections that can help a business grow. He says valuable businesses may choose an investor for that strategic fit, even when they are not looking for capital.
"if your capital is just capital they could go to the bank or they could just go to the highest bidder"
Richard's coconut water example depends on the investor already owning channels that reach food and drink distributors.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Serg Bell: Success comes from many decisions. He does not see business as one winning bet. He sees it as a long game, like poker or bridge, built on many smart choices over time.
- Tim Draper: Make your customers your sales force. Hotmail put a message at the bottom of the screen inviting people to get free email. It spread to 11 million users.
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Frequently asked questions
How can a family office attract better deal flow?
Richard C. Wilson's coconut water example connects a food and drink expo, a magazine, and a distributor database to a growth pitch for sellers. It shows how a family office's operating assets can give a business owner a reason to take its call.
What is a choke point?
Richard describes it as a strategic bottleneck that can bring deal flow, capital partners, or customers. His examples include owning an industry expo, a trade magazine, or a distributor database.
Can a niche family office consider other deals?
Richard says a website can include a page showing openness to other ideas. He still recommends being known for the focus the office most wants to attract.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.