Financial Advisor Success Ep 123: Buying Out A Retiring Founder & Funding Future Growth By Recapitalizing With Well-Aligned Patient Capital with Brent Brodeski
May 7, 2019
Brent Brodeski, CEO of Savant Capital, leads a firm boasting over $6 billion in assets under management. He discusses Savant's organic growth strategies and the complexities of buying out a retiring co-founder. Brent reveals how they navigated recapitalization, focusing on patient capital from family offices rather than traditional buyers, which often misalign with long-term goals. He also shares insights into employee ownership models, the importance of a high-quality board, and Savant's ambitious plan to 10x its growth through targeted M&A and organic expansion.
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Choosing Family Offices As Patient Capital
- Brent pursued family offices and foundations as patient capital that valued dividend yield and long horizons.
- Those investors accepted common equity, supported dividends, and committed follow-on capital for growth.
Value Alignment Over Highest Price
- Prioritize alignment over headline valuation when choosing investors.
- Pick partners who take common equity and share your timeline, dividend policy, and risk tolerance.
Board Built For Advice And Skin In The Game
- The recap created a board of industry veterans and outside investors who actively advise Savant.
- Brent recruited board members he wanted to learn from and asked them to invest to ensure full commitment.