4 ms·

You don't have a financial advisor? Well, I assume you have a lawyer, and I assume you have a banker-- ask them for recommendations. You might also ask the pros

by brk 16y ago

You don't have a financial advisor? Well, I assume you have a lawyer, and I assume you have a banker-- ask them for recommendations. You might also ask the pros who were on your board of directors prior to the sale. I wouldn't assume any of these things. Did YOU have a lawyer or financial advisor when you were 20? The OP reads as if it was basically a 1-man shop sale. If he sold a company for $5M that had a board of directors and all the typical formalities, it probably would have been VC or angel backed, and the terms of the deal for a $5M sale would have probably netted him $500K at best. Let's face it, almost any investor-backed equity event of $5M is pretty much a failure and returns little if anything to the management team. So, I read this as a "guy in a basement" sort of scenario who managed to create some webapp, service, or widget pretty much solo and was wise enough to be able to flip it for a nice chunk of change. I also happen to think he was smart for reaching out here to get broader advice. I've met TONS of financial advisors that can't manage funds for shit. Not to mention in the current market a lot of funds are down, and I'm sure he would have no trouble finding a bad financial planner or lawyer that would love the opportunity to manage the portfolio of someone naive in that regard.

michael_dorfman 16y ago
I didn't have a lawyer or financial advisor when I was 20, but I also hadn't closed a $5M sale, either. And when I did so (at a more advanced age), I certainly did. It strains credulity to imagine that anyone, of any age, would be able to close such a deal without a lawyer or a banker being involved. (And believe me, when you show up at the bank with a $5M deposit, you get introduced to financial advisors, like, fast.) Seriously: just the practical mechanics involved in the sale of a corporation requires a small team of professionals. No one hands a check for $5M to a "guy in a basement" without some due diligence, and that involves accountants, auditors, lawyers and bankers.
Judson 16y ago
I did have parents, who had a lawyer and a banker ;)
- run4yourlives 16y ago
  Not everyone lives with silver spoons in their mouths. (In fact, not everyone has the luxury of parents with good finances, or parents with jobs, or parents at all.)
  - Judson 16y ago
    In a society where bank accounts are free (and allow access to the resources of the bank) and lawyers work pro-bono, I don't think "silver spoon" is how I would describe people have access to either.
    - run4yourlives 16y ago
      A banker and a bank-account are two different things. Pro-bono lawyers aren't going to be pro-bono for long when they figure out you can actually pay them. That doesn't really help his cause though. The serious lack of any understanding with regards to how difficult a situation not having responsible parents that give you a serious leg up is betrays both your youth and your own upbringing. I'm not attacking you, I'm just saying that it pays to remember that not everyone has all the options you do available to them. Certainly not to the extent that it means they would never see the benefit in asking HN for advice.

by brk 16y ago

michael_dorfman 16y ago

I didn't have a lawyer or financial advisor when I was 20, but I also hadn't closed a $5M sale, either. And when I did so (at a more advanced age), I certainly did. It strains credulity to imagine that anyone, of any age, would be able to close such a deal without a lawyer or a banker being involved. (And believe me, when you show up at the bank with a $5M deposit, you get introduced to financial advisors, like, fast.) Seriously: just the practical mechanics involved in the sale of a corporation requires a small team of professionals. No one hands a check for $5M to a "guy in a basement" without some due diligence, and that involves accountants, auditors, lawyers and bankers.

Judson 16y ago

I did have parents, who had a lawyer and a banker ;)

run4yourlives 16y ago
Not everyone lives with silver spoons in their mouths. (In fact, not everyone has the luxury of parents with good finances, or parents with jobs, or parents at all.)
- Judson 16y ago
  In a society where bank accounts are free (and allow access to the resources of the bank) and lawyers work pro-bono, I don't think "silver spoon" is how I would describe people have access to either.
  - run4yourlives 16y ago
    A banker and a bank-account are two different things. Pro-bono lawyers aren't going to be pro-bono for long when they figure out you can actually pay them. That doesn't really help his cause though. The serious lack of any understanding with regards to how difficult a situation not having responsible parents that give you a serious leg up is betrays both your youth and your own upbringing. I'm not attacking you, I'm just saying that it pays to remember that not everyone has all the options you do available to them. Certainly not to the extent that it means they would never see the benefit in asking HN for advice.