Acquisitions Can Cost Your Health

It's been more than 10 years since we sold SendHub, but I still get weekly reminders of the damage the acquisition process did to my health. Our sale process was about 6 months and I lost over 40 lbs...

Not every startup acquisition will demand physical damage. In the cases where you're approached by the buyer, the experience is very different. Although it's certainly stressful, founders don't report severe health consequences at anywhere near the same rate. So, if you can wait until someone wants to buy your company, you will likely save yourself some doctor visits.

However, for most founders, selling is a necessity and you can't expect to have a willing buyer already on deck. You need ~50 first meetings to give yourself a chance at finding a match and as it's much tougher to get meetings for an acquisition versus fundraising, the burden of grind and uncertainty falls on the CEO. It's a very demanding and lonely time.

If you're lucky enough to find a buyer and sign an agreement, the process is far from over. The legal work takes months and the deal remains delicate throughout: most acquisitions don't close. Often, as the CEO, you will be on daily calls with the buyer's decision maker, dealing with difficult issues and trying to keep them happy. It's exhausting.

Once you close, the buyer will be very keen for you to come on board with immediate momentum. Of course, you'll be in desperate need of a vacation. Despite the pressure, you will need to give yourself time to recover - take the trip.

Although the startup acquisitions process had a negative, long term impact on my health, there were benefits. I was able to get my foot in the door at a few VC firms and that led to me starting Sterling Road. Selling your startup could also be the right path for your team, just be aware of what you're signing up for.