Mining WealthTracker Alerts

April 7, 2009

Track wealth events

• Cash and tax obligations are generated by:

• - stock sales• - company sales• - IPO’s (sometimes)

• These create tax planning and gift opportunities.

Wealth indicators

• While not necessarily immediate cash sources, wealth is also indicated by:

• - executive positions,

• - stock holdings, and

• - new financings.

Types of Alerts

• People in Motion

• Stocks Transactions (Sales)

• New Execs Added

• Mergers & Financings

• WealthMonitor events

People in Motion

• New appointments

• Focus on:

• - titles (the “c’s”, like CEO, CFO, CTO)

• also “partner” & “founder”

• - companies (hot +/or big)

• ex: energy (solar) or maybe IBM

Stock Transactions

• Purchases, Sales, Options, Holdings

• Focus on:

• - sales over preset target (ex $1M).

• - holdings over preset target (ex $2M).

• - caution: consider if option exercise costs actually reduce proceeds.

• - note stock gifts (look up values).

New Execs Added

• Sometimes repeats “People in Motion”

• Focus again on:

• - titles

• - companies

• - also consider career history

• ex: was a past company sold? Is this a serial CEO or entrepreneur?

Mergers & Financings

• Lists co. sales, purchases, & financings

• Focus on:

• - co. sales over preset target (ex $10M)

• Do not focus on:

• - co. purchases & financings

• - these are not wealth events

Company sales

• - ignore co. division or subsidiary sales between companies (focus on $ to individuals/owners)

• Focus on:• - owners, founders, CEO’s, top mgmt.• - in the absence of better information, assume

20% minimum to management.• - consider venture funders in some cases

(20% of firm’s profit goes to vc manager).

Wealth Monitor

• Gives early warnings and rumored activity (some unconfirmed)

• Can be particularly useful intel for known big prospects. (Fewer surprises)

• Can turn up new prospects not seen before (where no deal was previously done)

Now What?

• Set up a tracking, rating, and alerting system for events.

• Examples:

• - paste confirmed data into database.

• - email wealth event news to GO’s.

• - update ratings when data confirmed.

A Few Notes

• Confirm the data (use other resources).

• - First, make sure this is your person.

• - See if other prospects involved.

• - Is transaction what you think it is?

• - Go to SEC site, website, etc.

Notes (cont2)

• Extend the data (more & others).

• - “google” transactions; learn more.

• - was there a big profit?

• - was there a founder not mentioned?

• - who financed the company?

• - did an exec have past deals too?

Notes (cont3)

• Focus on the money. A seller is liquid.• Caution: make sure not a “take-under”.• Follow “the whales” further (check out all

angles of a big deal).• A $200M+ deal probably makes big money

for all management, founders, and investors.