How Does Life Change After the Acquisition Process?
18 October 2024
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So, you’re selling your business and already imagining what life could be like post-acquisition. After spending years working tirelessly to build your company from the ground up, it’s understandable if you’re unsure about what comes next. However, you're not alone. Around 10,000 businesses are sold every year, so many founders have faced the same questions you may be asking yourself now.
At Foundy, we regularly engage with exited founders about their post-acquisition experiences, and the conversation often touches on the mixed emotions of stepping away from a company they’ve poured their heart and soul into. While the payout can be life-changing, leaving behind a role where you've been in control can be challenging.
If you're considering selling your business or are already in the acquisition process, this guide provides insights into how life may change after the sale and how to prepare for it.
5 Ways Life Changes for Founders After an Acquisition
1) A Deep Feeling of Relief
Building a business is no small feat. As a founder, you likely worked long hours, dealt with high levels of stress, and navigated countless obstacles. The fear of failure is a common motivator, driving founders to push harder and invest more time and energy into making their venture a success. The idea that your business might not make it can weigh heavily on your mind, making the relief after a successful exit all the more powerful.
Once the acquisition is complete, many founders describe a sense of relief. The uncertainty about the company’s future fades, especially if your business faced an uphill battle. For some, the weight of constant responsibility is lifted. It’s important to savour that moment—many founders soon find themselves seeking out new challenges to replace the ones they’ve left behind.
2) Enjoy Financial Freedom
One of the biggest draws to entrepreneurship is the potential for a payout that far exceeds what you could earn as an employee. Selling a business can result in a life-changing sum of money, allowing you to finally achieve financial independence. Whether it’s splurging on a dream car, a new home, or giving back to friends and family, this newfound freedom is undeniably liberating.
However, as Steven Bartlett, Co-Founder of Social Chain and Dragons' Den star, famously remarked after selling his business for $400 million: "You always want what you don’t have." Sometimes, after years of living modestly while running your company, the payout can feel anticlimactic. Be mindful of your spending post-acquisition and consider how to maintain your financial freedom for years to come. You’ll want to have the resources available when the next opportunity comes along.
3) New Business Opportunities
Many entrepreneurs find that after selling their company, they are drawn to new ventures. Whether it’s buying a business, investing in startups, or starting a new venture from scratch, the thrill of building something new often remains.
When considering your next move, think about whether you want to stay within your current industry or try something completely different. Staying within the same industry might provide new opportunities that weren’t available when you were still involved in your previous company. If you’re switching industries, consider how your skills and experience can be applied to smaller businesses facing challenges you’ve already overcome.
Networking is key in this stage. Reconnect with colleagues, attend industry events, and keep your LinkedIn profile up to date. You never know where your next opportunity might come from. Don’t rush into anything—take your time exploring what excites you.
4) Opportunities to Share Your Expertise
As a successful founder, you’ve gained valuable experience. Whether you made mistakes along the way or navigated the acquisition process smoothly, your insights are incredibly valuable to others.
Post-acquisition, you’ll have the opportunity to share this expertise in a number of ways:
Serve as a mentor: Help aspiring entrepreneurs by sharing your knowledge and guiding them through the challenges you’ve faced.
Write a book: Share your startup story with the world and offer advice to others in the same position.
Start a podcast or become a thought leader: Inspire others by sharing the highs and lows of your entrepreneurial journey.
There are countless ways to give back, and for many founders, these activities can serve as a fulfilling way to stay connected to the business world. You might even find that sharing your story leads to new opportunities.
5) The Challenge of Finding New Purpose
While selling your business brings relief, it can also lead to an unexpected feeling of emptiness. For years, your purpose has been wrapped up in building and growing your company. After the sale, some founders find that the joy and excitement they anticipated can be short-lived as they struggle to find the same level of fulfillment.
The emotional impact of selling a business can be significant. Building a company from the ground up requires intense dedication, and stepping away from that can leave a void. While the financial rewards are great, for many founders, the most satisfying part of the journey is the process itself—the problem-solving, the growth, and the constant challenge.
However, this feeling of a lack of purpose often fades as founders begin exploring new opportunities, whether it's taking a long-overdue break or immediately focusing on a new project. As your post-acquisition life unfolds, you’ll likely find a new mission to drive you forward.
Tips for Planning Life After an Acquisition
To ensure you’re fully prepared for life post-acquisition, consider these practical steps:
Set Financial Goals Early: Work with an advisor to establish a clear plan for managing your newfound wealth. Whether you want to invest, start a new venture, or simply enjoy financial security, having a plan in place will help you maintain your financial freedom.
Explore New Business Ventures: If you’re ready to dive back in, look for exciting new opportunities to buy a business or start something from scratch. Platforms like Foundy can help you discover opportunities across a variety of industries, with over 1.1 million transactions available to explore.
Leverage Your Network: Keep in touch with industry peers, attend relevant events, and continue networking to stay in the loop about potential new opportunities. Consider how your previous experience might open doors to new ventures.
Pursue Personal Passions: Now that you have time and financial freedom, you can explore personal interests that might have taken a back seat while running your business. This can be a great way to recharge before jumping into your next big project.
Seek Professional Support: If the transition proves challenging, it’s okay to seek guidance from a mentor or professional who has experience in selling a business. They can help you navigate any emotional or practical obstacles you encounter.
Start your next chapter with Foundy Today
Life after selling your business is full of new possibilities. From enjoying financial freedom to exploring new business opportunities, the next chapter can be just as exciting as the one you’ve just completed. Whether you’re looking to sell a business, buy a business, or simply explore your options, Foundy’s step-by-step expert support is designed to help founders navigate every aspect of the journey.
With access to over 1.1 million transactions, business valuation tools, and our Triangular Model of expert advisors and data-driven insights, Foundy offers a comprehensive solution to ensure your exit is successful and that you’re fully prepared for whatever comes next.
Ready to discover your business's value?
We offer specialised M&A advisory services across a wide variety of industries. If you're in the process of growing your business towards a funding round or an acquisition, clients have repeatedly recommended utilising a portal. It starts with a free business valuation. Foundy factors in over 29 key elements that contribute to your business valuation, helping you to understand your company's current position and the necessary steps to position yourself for a successful sale.
While some business owners thrive on the excitement of buying and selling on their own, many, including myself, benefit from collaborating with experts who bring more sector specific experience. However, it’s important to note that working with M&A advisors is not a one-size-fits-all solution. Hence why we built our advanced portal and Find An Advisor programme to empower you with the tools, education and relevant expert support to help you navigate the end-to-end process and secure a higher valuation.
Check out the free calculator on our pricing page, which shows you the six to seven figures in additional share value Foundy can provide your business.
No matter where you are on your business journey, connect with Foundy to access the resources needed for a smoother acquisition or sale process.