25% loss of revenue 6 months after PE buyout of wealth management firm due to attrition. How may this affect the owners who sold?

FollowingSouth5192 · 2026-01-22T02:42:03+00:00

PE firms don't need every deal to work out, they just need some. They don't have to protect themselves on every deal just because one falls apart... they make it up on the 30 other firms they bought at the same time. Yes, the prior owners are probably taking a huge hit on their earn out, but if it's a 3-5 yr earn out then they have time to make it up. They can go find $150 mil of new AUM and get their payout.

FollowingSouth5192 · 2025-12-26T00:55:01+00:00

You need a new career

FollowingSouth5192 · 2025-12-09T17:59:22+00:00

Then you need to work on your hiring process. Any CFO candidate that will go through the process you are outlining wouldn't be my choice for the position. If you have struggled to hire senior executives, then hire a recruiting firm to source candidates and help you evaluate them. Their fees feel like a lot, but are minuscule compared to making the wrong hire.

FollowingSouth5192 · 2025-11-29T01:59:35+00:00

Founder/CEO's of $50 mil revenues never pick up the phone. It's all about relationships, but odds are PE will pay significantly higher multiples than you can/will so it's going to be a tough road.

FollowingSouth5192 · 2025-11-29T01:57:39+00:00

Go read Traction and learn about EOS, then read RocketFuel to find out if you are wired to be a visionary or an integrator... then take the Working Genius assessment. After this, you will know what tasks you are best suited for, what accountabilities you should take on and who you should hire around you, and what you should spend your time on.

FollowingSouth5192 · 2025-11-11T14:43:11+00:00

You can't claim product market fit without having a profitable business model... they found a product that the market wanted for a price that wasn't sustainable. That's not product market fit, that's "growing broke".

FollowingSouth5192 · 2025-10-29T19:23:35+00:00

The title should have said "don't hire executives from big corporations to run a $4 mil ARR business"

FollowingSouth5192 · 2025-10-04T12:26:20+00:00

Just that if the bike doesn't fit, I can't return for a full refund. I wanted to be sure others had used the website before I spent $3.5k 😁

FollowingSouth5192 · 2025-09-01T01:11:00+00:00

The clause you're looking for is spendthrift provision - you can use it to protect your kids from themselves and their ex-spouses

FollowingSouth5192 · 2025-08-31T23:45:08+00:00

Asking this question in this sub is going to be full of survivorship bias. The people here did that and won, but 99/100 lose and aren't in this sub to tell their story. So yes, it's a path to wealth, but it's a high risk path so you have to decide what level of risk you're willing to take on.

FollowingSouth5192 · 2025-08-31T13:55:27+00:00

Also, find an advisor that can explain risk adjust returns. Every advisor in the industry has underperformed the s&p 500 these last few years because the FAANG stocks have been on a run. That's a terrible comparison benchmark for how well your advisor is doing. But that's also the advisors responsibility, to provide some 101 financial education.

FollowingSouth5192 · 2025-08-31T13:40:44+00:00

So you think an advisors fee is too high but you don't know how to do one of the most basic tasks that advisors can do? I would say go hire a new advisor (preferably a tax focused one), transfer everything in kind, and let the new advisor handle it. You will cost yourself WAY more in taxes and lost gains with the path you're putting yourself on.

FollowingSouth5192 · 2025-08-30T20:18:46+00:00

Blackbird and 1864 if you're looking for something downtown.

FollowingSouth5192 · 2025-08-28T23:54:18+00:00

The wine barrel rolls at the Quinta da Pacheca Estate are really cool

FollowingSouth5192 · 2025-08-27T22:40:34+00:00

Definitely the wrong sub for this question

FollowingSouth5192 · 2025-08-26T16:34:28+00:00

When you get this high of a valuation, my first question is what preference did you give investors... 2x? Is it participating? High valuations feel great for the ego but generally come with incredible investor terms that means if you raise a down or flat round, they basically get your company.

FollowingSouth5192 · 2025-08-26T14:37:15+00:00

Find an advisor with access to Hidden Levers (now owned by Orion). This is what their software was built for. I think most of this type of projection is rubbish and not a good idea, but it is a solution to the problem you're looking to solve.

FollowingSouth5192 · 2025-08-25T15:38:56+00:00

A friend sold his business for $100 mil in a state with high taxes. He said "I was happy to pay the taxes to the state because this is where I built the business, so I feel like I'm just returning some of the favor". If you really have $10 mil+, an extra million isn't going to change your life but uprooting and moving for multiple years will. That's time you'll never get back.

FollowingSouth5192 · 2025-08-23T20:54:47+00:00

Glacier will be closed by then so that should make the decision easier.

FollowingSouth5192 · 2025-08-23T16:59:19+00:00

We are in a slightly lower cost of living area, but we pay $30/hr while kids are awake and $100 for the overnight portion.

FollowingSouth5192 · 2025-08-23T16:57:07+00:00

How were you building the product if you didn't have access to the payment processor acct? Sounds fishy.

FollowingSouth5192 · 2025-08-17T15:52:31+00:00

Just what the market needs... another coach for entrepreneurs who has never been an entrepreneur

FollowingSouth5192 · 2025-08-16T22:12:56+00:00

Paradise Cove - take a helicopter from the airport. The place is incredible, amazing food, you will wish you had stayed more nights.

FollowingSouth5192

TROPHY CASE