Jerome Myers
Jerome Myers
THE BIG PICTURE
A Wealth Transfer, But Not Always A Founder Transfer
Cerulli Associates projected in 2024 that $ 124 trillion in wealth will be transferred from wealth holders to their heirs through 2048, with $ 105 trillion expected to flow to heirs and $ 18 trillion to charity.
This is a critical phenomenon for financial advisors. Clients’ life transitions— such as their business exits, retirements, divorces, inheritances and any other moments where they achieve sudden wealth— are also moments when the client-advisor relationships can fracture( and the assets move).
The business exits are our focus here. A founder exiting a company is not the same as a retiree leaving a job, an heir receiving wealth, or a spouse inheriting assets. A founder’ s transition is more emotional.
That’ s because the founder did not merely work inside the company. They built the
They’ ll have more time. More money. More choice. More flexibility. More ability to travel, give, invest, mentor, relax, or start something new. I call this the“ transaction illusion.” Because the money didn’ t solve every problem.
The questions now become personal:“ Who am I without the company?”“ Where do I belong now?”“ What do I do with my energy?”“ Who needs me if I am no longer leading the business?”“ What does success mean when growth is no longer the scoreboard?”“ What was all of this for?”
Advisors might say that sounds like a“ you” problem for the client. Why should it matter to the advisor? It does because the client in this state is vulnerable to impulsive decisions, relational strain, overcommitment, isolation, guilt-driven giving and fear-based spending restraint. Or they might feel like chasing another venture just to feel useful again.
The advisor runs a risk of interpreting
A founder exiting a company is not the same as a retiree leaving a job, an heir receiving wealth, or a spouse inheriting assets. A founder’ s transition is more emotional.
thing. They were often the chief strategist, chief firefighter, chief culture carrier and chief meaning maker. Their relationships, reputation and daily proof of usefulness were entangled with the enterprise.
That means the exit can destabilize them. They may be financially safer, but they are personally less certain than they have been in decades.
It’ s called by some the“ founder’ s exit paradox”— when they achieve the outcome they were told to pursue, then discover the transaction did not answer the deeper questions the business had been helping them avoid.
The Transaction Illusion
Business founders who sell often believe that the deal will deliver them freedom, clarity, fulfillment and peace. this behavior on their client’ s part as indecision or a lack of discipline when it’ s simple disorientation. And misreading a client means you risk losing them.
Personal Readiness Is A Thing
While the technical aspects of exit planning( such as tax strategy and deal structure) matter, the founders’ personal readiness for the transition is also important, and advisors likely aren’ t on top of this. That’ s because advisors are trained to solve measurable problems. They can model tax consequences, cash flow, liquidity needs, asset allocation, philanthropic vehicles, estate structures, and risk exposures. A founder’ s post-exit instability, by contrast, doesn’ t begin as a spreadsheet problem. It begins as a problem with their personal meaning, some- thing that’ s usually not thought of at all and, if so, only after the deal is done.
The things that must be addressed before the transaction include the founder’ s future role and their family expectations as well as the relationship dynamics with the rest of their employees. It’ s also important to talk about the founder’ s new work identity, social network, and philanthropic efforts, as well as their sense of purpose.
If those questions are not addressed until after closing, the advisor is not early. The advisor is late.
The Centers Of Doubt
Founders’ exits also change their family dynamics, peer relationships and employee connections. Some of their relationships, if built around their companies, might not survive the transition.
Meanwhile, the founders may say they want rest, yet many are not wired for indefinite leisure. They need to contribute to the world in a new way. Otherwise, the lack of work can feel less like freedom and more like disappearance.
Health is another issue for business owners. Their work may have masked years of stress, neglect, overextension or physical depletion. Once the adrenaline drops, the cost of the climb becomes harder to ignore.
These emerging problems give an advisor a chance to show how they are helpful— or, on the other hand, to show they aren’ t and possibly lose business. It’ s not necessary that they become therapists. But they should be fluent in how money issues influence behavior.
The Advisor’ S Expanding Role
Cerulli has noted in research on widows and widowhood that advisor relationships during transitions are heavily influenced by the strength of the relationship itself.
A founder preparing for exit is silently asking these questions of their advisors:“ Do you understand what this company has meant to me?”“ Do you understand what I am losing, even as I am gaining liquidity?”“ Do you know how to help me think about life after the deal?”“ Will you still be relevant when the transaction is over?”
14 | FINANCIAL ADVISOR MAGAZINE | JULY / AUGUST 2026 WWW. FA-MAG. COM