Dear Founder,
Congratulations! Today is a big day! You and your board have decided to take a buyer’s offer for your company. Hopefully, you were able to make your employees, your shareholders and yourself a lot of money—and also make an impact on your industry and maybe even the world. And now, in an ideal scenario, you and your team will get to work on a larger canvas.
Of course there are several ways these acquisitions play out.
There are great outcomes. All of your employees, investors, and the buyer are ecstatic about the deal. The math works beautifully: 1+1 = 3. Everyone see a future that is far more exciting than the past.
There are good outcomes. Your company was purchased at a significant premium (and there may be synergies between the two entities), but maybe you’re not as happy about the acquirer.
There are okay outcomes. Maybe this is an acquihire or even a fire sale and you’ve landed the team in a safe place. The buyer and employees may be satisfied, but the investors may be unhappy because they didn’t get a good return.
I don’t know which bucket you fall in, but it all boils down to the same fact—someone wanted to buy you in some fashion. Everyone hopes for a “great” result because it’s the easiest of all to manage, but if you have an acquihire or even a fire sale you’ve still achieved something worthy. You’ve developed something that other people want.
It’s likely that the deal has been in progress for a long time—probably many months. But for most of the world, and for your team, the news is fresh today.
Here are some suggestions for how to handle this with your team and the world:
- Thank the team, customers and investors for all of their support and efforts.
- Acknowledge the achievements that have happened to this point.
- Thank the acquirer for their interest and also paint a picture of what’s possible together (why 1+1 = 3).
- Signal your intention to make this bigger and your commitment to stay—at least through the transition.
- Don’t be morose. Your team will take their cues from you.
- Answer questions. As this is news for your team, expect it to take time to process. Provide solid information. If you don’t know something, be honest and say you don’t know.
- Celebrate! You’ve achieved what a lot of startups don’t—a (hopefully successful) exit.
And, if/when you’re ready to start again, we’ll be here waiting!
All the best,
Maynard