Ep 465: Making The Sell-Or-Keep Decision When You Hit A $260M AUM Wall with Todd Pisarczyk
Nov 25, 2025
01:29:43
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question_answer ANECDOTE
Hitting The Capacity Wall
Todd hit a personal capacity wall around $260M AUM with ~350 clients and ~$1.2M revenue which left him very unhappy despite financial success.
He began receiving acquisition offers starting in 2019 that prompted him to seriously evaluate selling versus keeping the firm.
volunteer_activism ADVICE
Model Sell Vs Keep With A Spreadsheet
Build a financial comparison model before deciding to sell so you can compare sell-now proceeds plus salary versus staying and growing.
Use conservative growth and multiple assumptions and stress-test scenarios like lower future multiples or contingent earnouts.
insights INSIGHT
Why Keeping Often Beats Selling Now
Even with a much lower internal-succession multiple, keeping and growing the firm often yields more lifetime value than selling at a high external multiple.
Time horizon and desire to keep working are central: selling-and-staying often pays less unless the buyer materially increases growth you couldn't achieve yourself.
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In an environment where there is no shortage of external acquirors, many RIA founders receive regular inbound inquiries from potential suitors. While the compensation from such deals (and the ability to shrink the administrative burdens they face) might be tempting, these offers can be weighed against a desire to grow independently and perhaps pass it on to the next generation.
Todd Pisarczyk is the founder of Momentous Wealth Management, an RIA based in Vancouver, Washington that manages $400 million in AUM for 400 client households. Listen in as Todd shares how he hit a turning point after reaching 350 clients and feeling trapped by success, then built a detailed spreadsheet (included in the show notes) to analyze whether to sell or keep his firm. We talk about how the numbers (and lifestyle considerations) ultimately led him to stay independent, the changes he made to scale sustainably, and how his definition of success has evolved from "more growth" to creating a legacy where others can thrive.
Financial Advisor Success