Comment by bcantrill
1 day ago
I know from the outside this seems very simple, but it's more complicated than that. Certainly, if the objective is (merely) security for one's children, that can be secured with much (much) less money (and likely was secured in the secondary that the author makes reference to); having nine figures of wealth is not an unvarnished good, and in particular makes raising grounded, self-reliant kids pretty complicated. To appreciate this dynamic, read Graeme Wood's outstanding 2011 piece in The Atlantic, "The Secret Fears of the Super-Rich"[0].
[0] https://web.archive.org/web/20190422235813/https://www.theat...
> having nine figures of wealth is not an unvarnished good, and in particular makes raising grounded, self-reliant kids pretty complicated
Sure, but I’m pretty sure if you asked those parents if they’d rather lose all their money to make parenting easier their answer would be a resounding “no”.
Those aren't the choices. You don't understand how the poster passed on nine figures -- but if the secondary sale netted 7 figures (likely), the choice is in fact between having enough wealth to have total security for one's family versus having so much wealth that the wealth itself creates anxiety.
Then have someone manage the money away from you. Put it in a lifetime trust, whatever. The idea that you’d turn down that sum of money because of the anxiety it would cause you is simply not logical.
Correct. The secondary provides the safety net to confidently swing for the fences.
You forgot to account for the 100+ employees. The liquidity event would have helped their families as well.
I won’t disclose details out of respect for the other party, but no, not necessarily. As I wrote, it was a good deal for the founders and some investors, but not for everyone, including employees. There are many ways to structure a sale, and unfortunately not all of them split the cake equally.
At 9 figures I’m sure the founder can trickle down a few for everyone including employers after the sale.