Category Archives: Uncategorized

Feature 2021

39. What Happens To Your Equity When Your Company Goes Private



Unless you’ve been living under a rock, by now you have certainly heard about Elon Musk’s plans to buy Twitter and take it from a public company to a private one.  Oftentimes, there are many things that will change when a company goes private. And that is especially true with it comes to existing shareholders.

In this episode, Malcolm Ethridge uses Twitter as a case study to talk about what happens to you as both an employee and an investor when the company you have an interest in suddenly goes private. Malcolm also shares his advice on what employees of publicly traded companies should consider as soon as their company announces plans to go private.

Malcolm discusses: 

  • The process of taking a public company private and what makes Elon’s Twitter takeover unique
  • The differences between public and privately owned companies
  • What happens to existing shareholders when the company goes private
  • The tax impact to shareholders when a company goes private
  • And more

Connect With Malcolm Ethridge:


Feature 2021

38. Developing Passive Investment Income as a Tech Professional with Christopher Nelson



Tech professionals are some of the best paid and most in-demand workers around the globe. And in exchange for that great pay and other incentives, it is not uncommon to log back-to-back (to back to back to back) 50, 60, or even 75-hour work weeks; ultimately leading to a burnout. One of the ways to stave off that burnout is to ensure that you have a secondary source of income to rely on if and when you feel the need to walk away for a while. 

In this episode, Malcolm Ethridge is joined by Christopher Nelson, Principal and Co-founder of Wealthward, as they discuss the importance of developing secondary sources of income. Malcolm and Christopher share some of their own recommendations for how tech professionals can be intentional about their career choices, as well as the appeal of real estate as a means to generate passive income.

Christopher discusses: 

  • The ways in which having a secondary source of income can give you options as a tech professional
  • Being intentional about your career decisions 
  • The difference between thinking like an investor and thinking like a spectator
  • Understanding the true value of the equity you receive as compensation
  • And more

Resources:

Connect With Christopher Nelson:

Connect With Malcolm Ethridge:

About Our Guest:

Christopher Nelson is the Co-Founder and Principal of Wealthward Capital, a private equity investment firm. Wealthward Capital invests in cash flowing and institutional grade assets. His focus is meeting with operators and finding the next investment. When not out looking for opportunities, Christopher is spending time with investors educating them on building thriving passive income portfolios.

Christopher is a twenty plus year technology executive (2 x IPOs), real estate investor, educator, and author. He has built professional services practices, run small businesses and helped take Splunk (SPLK) through an IPO and grow to a billion-dollar company. Christopher has a proven track record of building strong partnerships, win-win negotiations and finding great opportunities where others are not looking.

 


Feature 2021

37. Finding Liquidity for Your Illiquid Shares with Vieje Piauwasdy



If you’ve ever worked for a startup, then you know it can feel a bit like watching paint dry, waiting for the company to reach its light at the end of the tunnel, going public, and allowing you to finally cash in on all of your hard work and contribution. In many cases, it can take more than 10 years. And since the average tour of duty for a mid-level software engineer at a tech startup is just north of two years, it is fair to say not many are sticking around long enough to see the paint finish drying.

But what of their stock options? One of the main drivers of tech workers deciding to go work for untested and unproven startups rather than one of the more established incumbents with all of their fringe benefits, is for the potential financial rewards of getting in early and helping to build something from the ground up. 

In this episode, Malcolm Ethridge is joined by Vieje Piauwasdy, Senior Director of Equity Strategy at Secfi to discuss the various solutions out there to provide employees of private companies with the liquidity they need to exercise and take ownership of their shares before an IPO. Malcolm and Vieje share their own experiences counseling startup employees with illiquid shares, as the importance of developing a plan for what to do with those shares long before the company IPOs.

Vieje Piauwasdy discusses: 

  • Creating a plan to manage your cash flow in the years leading up to an IPO
  • The difference between recourse and non-recourse loans 
  • The value of exercising your stock options early
  • The importance of diversification when managing your stock options
  • And more

Connect With Vieje Piauwasdy:

Connect With Malcolm Ethridge:

About Our Guest:

Vieje Piauwasdy is the Senior Director of Equity Strategy at Secfi. As an equity compensation and taxation expert, he guides startup employees through the complexities of private company equity to ensure that no money is left on the table. Prior to joining Secfi, Vieje spent years at PwC, where he specialized in tax reporting and strategy for hedge funds, private equity funds, and asset managers.

 


Feature 2021

32. Talking to Your Family About Money with Amy Castoro



We’ve all heard the statistics and read the articles about the pro athlete or entertainer who lived a life of luxury for years, spent money freely, gave it away, didn’t respect it, and then one day, they were no longer at the height of their fame and success, the dollars stopped coming in, and they were flat broke. However, what doesn’t get reported on nearly as much is the phenomenon of wealthy families who lose their fortune across just one or two generations.

In this episode, Malcolm Ethridge sits down with Amy Castoro, president and CEO of The Williams Group, as they discuss the process and preparation for a smooth transfer of wealth among multiple generations. Amy illustrates the critical need for open communication about more than just money in order to maintain healthy family dynamics during and after a wealth transfer..

Amy discusses:

  • Maintaining healthy family dynamics during the transfer of wealth between generations
  • What to consider as you begin to think about the role you want your wealth to play in the lives of the people you care about
  • Communication strategies to help families build trust when talking about money
  • How much financial support is too much support to offer your adult children
  • And more

Resources: 

Connect With Amy A. Castoro:

Connect With Malcolm Ethridge:

About Our Guest:

Amy Castoro is the president and Chief Executive Officer of The Williams Group, which prepares families for the smooth transfer of wealth among generations.

For ten years, Amy has specialized in preparing high-net-worth families to successfully transition their wealth while keeping their families united and in control of their assets. She is an accomplished author, keynote speaker, and senior family coach. Amy leads family members; high-net-worth advisors; business leaders; executive managers; and teams from Fortune 500 companies, startups, and nonprofits to innovate, lead, and work better together. Amy’s experience with The Walt Disney Company, Adecco Corporation, and Grant Thornton Management Consulting provide her with a strong foundation of leadership in organizations.

Amy is the author of Bridging Generations—Transitioning Family Wealth and Value for a Sustainable Legacy. She holds a bachelor of arts degree in organizational psychology from Adelphi University in Garden City, New York, and is a Master in Somatic Coaching through the Strozzi Institute. Also, Amy completed a three-year business course with Hecht and Associates that emphasized the design of new offers and optimizing threats and opportunities in business.