Advanced Deal Structuring: How Investors Protect Their Downside

0:00Hey everyone, Richard C. Wilson, Family Office Club, coming to you from Los Angeles today, having our event in this building behind us. And we are talking about advanced deal structures. And what's interesting is how often people think, oh, deal structures, that's what my attorney does for me. Why would I need to study deal structures? Well, it's similar to saying, why do you need to do any proactive tax planning? Your CPA will figure that out. Well, most CPAs just tell you what you owe at the end of the year, right? If your attorney's not amazing, they're probably not proactively structuring deals and considering things that you're most afraid of or the counterparty might be most worried about.

0:37You're always going to be more motivated to make the deal work than your attorney, right? And so deal structuring is about optionality. You want to structure things in for all different types of scenarios. You want to protect your downside. Maybe add collateral if it helps. maybe cap somebody's return so they only get a two or three X, but get them their one X back, meaning their initial investment off the table a little bit faster as a give and take, right? You might want optionality in case a strategy doesn't work out. You might want to be able to step in and save your own money if you make an investment and it doesn't go well.

1:09You may want to be able to switch out the leadership, switch out the bank, not get diluted, not have someone sell the business to their sister for half of what it's worth. You might want negative controls, clawback controls. You could use a gross revenue royalty to help de-risk your investment on a monthly or quarterly basis. And you might want someone to get a second bite of the apple and carry some equity going forward or avoid using a bank and do seller financing. There are over 50 strategies we're covering today. And if you weren't able to make it to one of our four family office masterminds this week on deal structures, I highly encourage you to go right now to familyoffices.com forward slash virtual and join for$99 a month the virtual membership in the family office club because that gets you 2 ,000 investor talks.

1:55That gets you our 50 core AI tools. And once you use those, you'll see that the genuine value here runs deep and you're going to want to come to our in-person events, get to know each other in person at some of our events. We do four large super summits a year, one per quarter in Dallas, New York, Fort Lauderdale, in Los Angeles. And we do 12 in-person masterminds. We have monthly webinars. We have virtual family office masterminds. We also provide feedback and coaching on deal structures, one-liners, materials, how to implement AI. And we could be super helpful trail guide for you in the family office space, which is essentially the ultra wealthy super founder space of decamillionaires, centimillionaires, billionaires, in some cases, people running publicly traded companies.

2:40and we've had 2 ,000 speakers on stage over our 345 events since 2007. So over 19 years in business. If you wanna come get to know our 15-person team and come meet Family Offices and see how they think, adapt their mental models and do business with them, please go to familyoffices.com. You can always reach out to me directly too if you'd like. It's richard at familyoffices.com. Thank you. If you are a founder, raising capital, developing real estate, or you're an investor, we'd love for you to get involved in the Family Office Club. I've run this community for 18 years now. We've hosted 300 live events.

3:20We have 17 million social media group members and followers. We have the number one YouTube channel on Family Offices. We have the number one most popular podcast on Family Offices. You can learn more about us and our membership options at familyoffices.com. We have 30 in-person events planned in 2026 and another dozen events this year. Please go to familyoffices.com to learn more.