M&A
Do You Have Post-Acquisition Stress Disorder (PASD)?
by Chris on Mar.16, 2009, under Entrepreneurs, M&A
Post-acquisition stress disorder (or PASD) is the somewhat whimsical term I coined for a recurring theme I see with entrepreneurs who sell their company. Namely, entrepreneurs often either (1) hate “working for the man”, or (2) disagree with the way the acquirer is running “their” company. Often both.
It’s easy to understand why this happens. Most entrepreneurs are wired to be their own boss, and so there is a natural tendency for them to feel frustrated in an environment where they report to someone else. Add in the fact that acquirors often are much larger companies with more rigid hierarchies and approval processes in place, and it’s not hard to see where the problems can start.
Entrepreneurs often tend to be emotionally attached to the businesses they start. That’s a good thing when the business is theirs; it’s that passion and energy that drives the best entrepreneurs to succeed. Unfortunately, a sale of the business, while usually a great outcome for the entrepreneur, doesn’t always trigger a release of that emotional investment. So, again, you have a source of tension between the entrepreneur and the acquirer, who likely has different strategic and financial goals for the business.
So how do you deal with PASD? Understand that it might happen, why it might happen, and start the process of accepting it for what it is. It’s a little easier to handle when you know it’s coming.
And, if all else fails, you can always look at your wire confirmation from the closing. 
