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Sit tight after selling family business, experts counsel

Wealthy families who have sold a business this year and are sitting on cash should wait at least six months before making investment decisions, especially in the current economy, according to family wealth experts.

Wealthy families who have sold a business this year and are sitting on cash should wait at least six months before making investment decisions, especially in the current economy, according to family wealth experts.
“Entrepreneurs in a family business may know their market really well, but they have to learn to know what they don’t know,” said Leslie Quick, founding partner of Massey Quick & Co. LLC, a multifamily office in Morristown, N.J., speaking at the Family Office Forum conference in Chicago this morning, sponsored by the Family Office Forum of Chicago.
His family founded Quick & Reilly, one of the first brokerage firms.
“It takes a long time to build an investment philosophy, and that’s a major, major part of making the transition from a family business to a family office,” said Greg Rogers, president and founder of RayLign Advisory LLC, a multifamily office in Greenwich, Conn.
Families familiar with investing in one company were advised not to repeat the pattern once they sell their business.
“I saw families take too much concentration risk last year,” said Fort Flowers, president and chief executive of Sentinel Trust Co., a multifamily office in Houston.
Mr. Quick, Mr. Rogers and Mr. Flowers were panelists at the forum’s opening session, “Family Business to Family Office: Transitions, Integration and Separation.”