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Written by: Anonymous Advisor
As an RIA founder, you’ve likely fielded a dozen buyer inquiries—maybe even flirted with a few offers. It’s tempting to think, “I’ve built this business; surely I can sell it myself.” But here’s the hard truth: the M&A process isn’t just another financial transaction. It’s a high-stakes symphony of strategy, negotiation, and emotional intelligence—one where the cost of a misstep comes straight from your life’s work.
Today, we’re sharing an unfiltered letter from a founder who learned this the hard way. After navigating a for-sale-by-owner deal and completing his earn-out, he sat down to write what he wishes he’d known. His message? Even the most financially savvy advisors need an advisor for their once-in-a-lifetime transaction.
Dear Pre-Deal Self -
A transaction is an excellent opportunity. It’s life changing. There are so many duties that come with running a business, in addition to servicing clients. Those other duties of running a business took a lot of time and was very distracting from what should have been my main focus – clients. The transaction allowed me to focus on what I do best – work with clients.
But, you don't want to go through a transaction alone. I thought I could do it alone because I was a financial advisor, dealt with finances, and have a lot of experience doing what I do. I may have been a little naive. I didn't realize that I could have somebody represent me. If I could go back, it would be a whole different story.
For me, it was kind of like going through a commercial real estate transaction without a commercial realtor or a lawyer on my side. It's not as easy as it looks, and the only person you're going to hurt is yourself. Having somebody that you're paying a little bit of money to protect a lot of money from your side is well worth it.
Similarly, it's how you work with your clients. They're paying you a little money to guide them through lifelong transactions, help them succeed in their working life and succeed in their retirement. The argument that I always make to prospective advisory client is you’re paying us a little money, so it doesn't cost you a lot of money.
I know it is very hard for a natural financial advisor to look themselves in the mirror and say, “I need help with my transaction.”
But, you should listen to your own words and what you tell your own clients. Hire a sell-side advisor. It will be worth it.
Your future, post-deal self
Selecting the right partner for your once-in-a-lifetime transaction is one of the most significant decisions a founder will ever face. The founder’s letter isn’t just a cautionary tale—it’s a mirror. You advise clients daily to seek expert guidance for life’s pivotal moments. Why would your own once-in-a-lifetime transaction be any different?
Your next step isn’t a negotiation—it’s a revelation. Ensure it’s one you celebrate.