Most every founder keeps the exit scenarios and potential windfall tumbling around in the back of their minds during the journey of building and scaling a venture. The volume increases as possibilities (real or not) present themselves – a competitor gets acquired, meeting with a corporate development arm, random neurons firing, etc.
I was fortunate enough that, as the acquisition went from theoretical to an active opportunity, I was at a conference surrounded by a number of entrepreneurs I trusted, many of whom had sold multiple businesses. The primary message I heard, beyond the block and tackle of navigating a sale, was to take the mental trauma seriously.
First world problem or not, it’s real. Whether by choice (acquisition) or not (wind-down), we’re letting go of something we birthed. A University of Helsinki study in 2017 study showed that entrepreneurs are attached to their companies similar to parents. Part of our persona disappears, and the gap can be noticeable, punctuated by the often-dramatic change in our day-to-day.
Taking this advice seriously, I did the work mentally over the following months, preparing for the eventual day that my company, and my associated identity, would become past tense. When that day finally came, I was fortunate enough to avoid much of the negative spiral I had seen others go through. Instead, my mental model was more of graduating from university; I had 7.5 years (running a company, college in 4 😃) of great memories, relationships, and growth – but now it was time to graduate and move on.
I’ve since counseled many other founders who are in transition, and my advice is this – picture yourself the day after the company is sold. Forget any financial windfalls, those are less important than you realize. Who are you? Who could you be?
