Why the Financial System Isn’t Built for Founders

Why the Financial System Isn’t Built for Founders

by Nick Arellano, Founder, Your Legacy Partners

After decades of working with business owners, I’ve seen a recurring theme: the financial system that’s supposed to guide founders through one of the most important transitions of their lives often falls short—sometimes disastrously so.

A Fragmented System

When an owner starts thinking about a sale, they quickly realize that the so-called “system” isn’t really a system at all. It’s a patchwork of specialists: M&A advisors, consultants, brokers, accountants, attorneys, and financial advisors—each bringing their own lens, incentives, and agenda.

The challenge is that none of these professionals are truly built around the founder’s holistic needs. Instead, they tend to focus narrowly on their area of expertise. M&A advisors, for example, are paid when a transaction closes, typically steering clients toward a third-party sale, because that’s how they get compensated. They rarely have incentive—or often even the expertise—to explore less conventional exit paths, even if those might serve the owner better.

Consultants, on the other hand, are incentivized by ongoing retainers. Their priority is to continue the engagement, not necessarily to get to the finish line quickly or efficiently. Meanwhile, financial advisors are mostly focused on what happens after the sale, not on preparing the business itself for maximum value or on running a competitive, strategic process.

Even trusted CPAs and attorneys—though invaluable in many respects—usually lack the deep experience in business transitions and M&A that these high-stakes moments require. Their advice, while sound in its lane, can miss the broader strategic picture.

The Consequence: Patchwork Advice

This fragmentation leads to patchwork advice. Because these professionals don’t coordinate with each other (and often don’t even communicate), the owner ends up piecing together guidance that isn’t always aligned, much less comprehensive.

The end result? Most owners become overwhelmed and end up doing nothing. They stall—either because they’re paralyzed by conflicting advice, or because the process seems impossibly complex. Worse, many end up following the most familiar path—often a full sale—without ever understanding their real options.

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The Value Left on the Table

There’s another problem: many founders approach selling their business like selling a house. Maintain what you have, do a few touch-ups, call a broker, and expect to receive most of what you’re owed. But business transitions are fundamentally different. There’s immense value in the “intangible capital”—the relationships, culture, and systems—that buyers are looking for. Without guidance on how to unlock and highlight these assets, sellers often leave significant value for the buyer to reap after the deal is done.

A Better Way Forward

Owners deserve better. They need someone with experience in valuation, deal structure, strategy, tax, and wealth management—someone who understands all the exit options, not just the ones that trigger a commission. The right advisor should be focused on the founder’s holistic needs, helping to clarify what matters most, surface the true potential in the business, and put all the right pieces in place—long before the sale.

Most importantly, business owners need advice that is coordinated and aligned—an advocate who can help them see the whole board, not just the next move.

Final Thoughts

Most founders I meet are original or second-generation owners who have never sold a business before. They don’t always know what to expect or even what to ask. That’s understandable—this isn’t something you do every day.

My hope is that more founders realize that the system’s fragmentation isn’t their fault, but it is their challenge. With clarity, the right questions, and truly aligned advice, owners can navigate this process on their terms—and walk away knowing they captured the value and legacy they spent a lifetime building.

— Nick

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