Professional advice on selling start-up shares?
June 15, 2017 2:56 PM Subscribe
My spouse has the opportunity to take a significant amount out of a start-up they founded during their next investment round. We are looking for recommendations for who we should be talking to as we navigate this process.
We have already decided we need to talk to a tax advisor and probably a financial planner. We’d love recommendations for either of those two, especially those with familiarity with the start-up world. We’re in the D.C. area but willing to work remotely with the right person or firm.
Also, are there any other experts we should be consulting? (We’ve already have estate planning covered.)
We have already decided we need to talk to a tax advisor and probably a financial planner. We’d love recommendations for either of those two, especially those with familiarity with the start-up world. We’re in the D.C. area but willing to work remotely with the right person or firm.
Also, are there any other experts we should be consulting? (We’ve already have estate planning covered.)
Assuming you mean that the next round of funding will include a cash-out for your spouse, I think you're on the right track with a tax accountant and (maybe) a financial planner. The startup I co-founded was acquired a few years ago and the tax people were the most helpful for me to make sure I didn't make any serious mistakes. I ended up not hiring a financial planner, instead opting for a very simple 4-fund index fund-based plan on Vanguard. My tax person suggested I talk to their affiliated financial planner, but they charged a percentage of assets under management, which I was not interested in.
If you're comfortable doing some research and reading, the "Bogleheads"-style of investment management is safe, easy, and cheap. But if you're unsure, I would spend some time searching for a financial advisor to help you through the details. Specifically, I would recommend Vanguard's own portfolio advisor service. Depending on the amount of your cash-out, you may even be able to get a few discussions with a financial planner for free. It was definitely worthwhile for me, but I am not paying the ongoing management fees.
Before my acquisition closed, I hired my own lawyer (referred to me by my estate planning lawyer) to review the closing documents and non-competes, etc. The nature of the deal meant I didn't have a lot of leverage over any of the terms, so we didn't request any changes, but it was good to have a review by someone working for you.
Good luck!
posted by tybstar at 3:27 PM on June 15, 2017 [3 favorites]
If you're comfortable doing some research and reading, the "Bogleheads"-style of investment management is safe, easy, and cheap. But if you're unsure, I would spend some time searching for a financial advisor to help you through the details. Specifically, I would recommend Vanguard's own portfolio advisor service. Depending on the amount of your cash-out, you may even be able to get a few discussions with a financial planner for free. It was definitely worthwhile for me, but I am not paying the ongoing management fees.
Before my acquisition closed, I hired my own lawyer (referred to me by my estate planning lawyer) to review the closing documents and non-competes, etc. The nature of the deal meant I didn't have a lot of leverage over any of the terms, so we didn't request any changes, but it was good to have a review by someone working for you.
Good luck!
posted by tybstar at 3:27 PM on June 15, 2017 [3 favorites]
Very few consumer-grade financial planners or tax advisers will have the slightest idea how to handle this. Go to a a big law firm venture capital lawyer (the company's law firm may suit) and get references.
posted by MattD at 9:25 PM on June 15, 2017
posted by MattD at 9:25 PM on June 15, 2017
The founders I know in Portland, the Bay Area, etc have used: https://aldrichadvisors.com/ and https://www.gunder.com/
I have not personally worked with them, but people I consider pretty savvy have. Exits tied to a round are an area you want independent legal advice on.
posted by iamabot at 8:34 AM on June 16, 2017 [1 favorite]
I have not personally worked with them, but people I consider pretty savvy have. Exits tied to a round are an area you want independent legal advice on.
posted by iamabot at 8:34 AM on June 16, 2017 [1 favorite]
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posted by GuyZero at 3:23 PM on June 15, 2017