The Myth of the Acquisition
Why selling your business is just the beginning
As entrepreneurs, we often dream of the moment our hard work culminates in a successful acquisition. It’s seen as the ultimate validation: a larger company recognizing your vision and achievements, and rewarding you with resources, security, and the promise of an even brighter future.
I’ve been fortunate enough to experience this twice, having built and sold two businesses. The first, MillerSmith, was a digital marketing agency I co-founded with my partner Ian Smith. The second, Seir Hill, a non-alcoholic spirits brand, was recently acquired by Better Rhodes. Both experiences taught me invaluable lessons, including one key insight I wish more founders understood:
An acquisition is not the finish line. It’s the starting line.
MillerSmith: A Cautionary Tale of Incompatibility
Ian and I built MillerSmith from the ground up, growing to a team of 14 full-time employees with an enviable client roster that included Crown Royal, Energizer, and other high-profile CPG brands. These relationships, coupled with our team’s exceptional talent, made us an attractive acquisition target.
Ultimately, we were acquired by a branded merchandise agency. On paper, it was the perfect match: our digital capabilities complemented their services, and our clients bolstered their already impressive client portfolio. But theory doesn’t always translate into practice.
The Challenges of Integration
Shortly after the deal closed, the incompatibilities between our two businesses became painfully apparent. Differences in company culture, processes, and priorities led to frustration on both sides. What had once felt like a collaborative effort turned into a struggle to align visions.
No one was to blame, but the experience underscored the importance of due diligence—not just on the financials but on organizational fit. Better communication and a deeper understanding of each other’s values and workflows could have prevented many of the issues we faced.
Seir Hill and Better Rhodes: A Better Match, But Still Hard Work
My second acquisition experience, with Seir Hill, has been markedly different. Better Rhodes shares many of our values, and our businesses are naturally aligned in mission and audience. This has made the integration process much smoother.
But even in the best-case scenario, an acquisition brings growing pains.
The Complexities of Collaboration
Joining a larger organization means learning to navigate new structures, processes, and objectives. It requires balancing your entrepreneurial spirit with the goals of a broader team. While the added resources and support can be a blessing, the pressure to deliver results and drive growth can feel more intense than ever.
Why the Acquisition Is the Starting Line
For any founder eyeing an acquisition, it’s essential to adjust your perspective. Here’s why the journey doesn’t end when the ink dries on the deal:
1. Integration is a Marathon, Not a Sprint
The hard work of building your company doesn’t end with the sale—it evolves. Integrating teams, aligning goals, and finding common ground takes time, patience, and effort.
2. Your Role Will Change
As a founder, you’re used to calling the shots. Post-acquisition, you’ll likely find yourself answering to others and collaborating in ways that may feel unfamiliar. This shift can be both challenging and rewarding.
3. Results Matter More Than Ever
Larger organizations often have ambitious growth targets. While this can drive exciting opportunities, it also comes with increased scrutiny and pressure to perform.
4. Values Are Paramount
Shared values are critical to a successful acquisition. If the acquiring company’s culture clashes with your own, the road ahead will be far bumpier than expected.
Lessons Learned: Advice for Founders
Based on my experiences, here are some takeaways for founders considering an acquisition:
Do Your Homework: Evaluate the acquiring company’s culture, values, and operations as thoroughly as you evaluate their financial offer.
Communicate Openly: Clear and honest dialogue during the negotiation and integration phases can help prevent misunderstandings down the road.
Be Ready to Adapt: Embrace the changes that come with being part of a larger organization, and approach them with an open mind.
Stay Focused on the Big Picture: Remember why you built your company in the first place, and strive to maintain that vision even as you adapt to new circumstances.
Gratitude for the Journey
I am deeply grateful for the organizations and individuals who believed in my businesses enough to acquire them. These experiences have been transformative, both personally and professionally.
I am deeply grateful for the organizations and individuals who believed in my businesses enough to acquire them.
But if I could leave fellow founders with one piece of advice, it’s this: don’t view an acquisition as the end of your entrepreneurial journey. It’s a new beginning—one that demands just as much grit, determination, and adaptability as building your company from the ground up.
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