089: Why 70% of Advisors Lose Their Best Clients After Business Sales—And How to Keep Yours with Jeff Armstrong

The Influential Advisor

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5d ago 31:59

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Episode Summary:

Your best client just sold their business for $8 million and calls to say they're moving everything to Goldman Sachs. This devastating scenario happens to 70% of advisors, but Jeff Armstrong has the antidote. As a former business owner who ran a company for 23 years, Jeff reveals the blind spot costing advisors their most valuable relationships. While most advisors focus on managing wealth outside the business, Jeff shows how becoming the expert on your client's largest asset creates unbreakable loyalty. He shares why 97% of business exits disappoint owners and the actions that transform you from replaceable vendor to irreplaceable quarterback.

About the Guest:

Jeff Armstrong built and ran a laser printer repair company for 23 years before joining Cultivate Advisors. He helps financial advisors avoid losing clients to "big league" competitors by becoming business optimization experts.

The Brutal Reality:

Devastating Statistics: 50-70% of business owners fire their advisor after liquidity events when investment banks suggest they need "serious players."

Hidden Epidemic: Only 30% of businesses attempting to sell complete transactions. Of those that sell, 90% disappoint owners. This means 97% of exits fail expectations.

Shared Blind Spot: 99% of business owners cannot answer: What's my business worth? What multiples apply? What drives value? Most advisors share this blindness.

The Cultivate Solution:

Target Market: Businesses generating $1-15 million annually, matched with former business owner advisors who've successfully exited.

Partnership Model: Cultivate functions as team extension, creating "alley-oops" for investment planning and tax strategies as business performance improves.

Process: Free business valuation, gap analysis, prioritized roadmap. Owners implement independently or engage ongoing support.

Creating "Stickiness":

Becoming Irreplaceable: Help optimize their most valuable asset, and Goldman Sachs becomes irrelevant. You're their strategic partner, not just money manager.

Personal Trainer Effect: Business owners need accountability and implementation. You become associated with success at the source.

CEPA Training Revolution:

Implementation Gap: Traditional training provides knowledge without application skills. Cultivate's immersion events bridge this gap.

Viral Success: November event sold out after going viral within Edward Jones's 1,400 CEPA network.

Implementation Strategy:

Start Small: Pilot with one client. Cultivate includes you in calls and provides quarterly reporting.

Full Integration: Real-time business metrics create natural wealth management conversations.

Connect with Jeff:

LinkedIn: Jeff Armstrong
Email: [email protected]
Website: cultivateadvisors.com

Bottom line: While other advisors wait for liquidity events, smart advisors help create them and build unbreakable relationships.

Claim your free audiobook copy at: www.theshortbookformula.com

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Chapters

1. The Client Exit Nightmare (00:00:00)

2. Cultivate Advisors and Business Owner Blindspots (00:02:35)

3. Why Business Owners Need Expert Help (00:06:46)

4. Financial Advisors and Business Valuation (00:10:31)

5. Creating Sticky Client Relationships (00:16:16)

6. Training Advisors to Understand Business Value (00:22:49)

7. The Hidden Epidemic: 97% Exit Failure Rate (00:28:16)

8. Accountability Partnerships and Future Vision (00:31:56)

93 episodes

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