How to Survive Your Post-Exit Vesting Period

Ninety percent of start-ups fail, which makes starting a company one of the most hopeful acts in the world. From inception, many founders have their eyes firmly on an IPO, and others dream of being acquired. This post is for the second group, and more specifically for those who have already sold their companies and are now learning that the terror of building your own thing may be preferable to the thousand paper cuts of being someone else’s employee. (At least terror pumps you with adrenaline, whereas paper cuts slowly drive you mad.)

When I am working with founders who have sold their start-ups and are now employed by the acquiring company as part of the sale agreement, here are three things I try to help them understand while they are in the post-exit vesting period.

You need lots of support in the tunnel

The process of building a company is really hard—a long, dark tunnel with a glimmer of light in the distance. But what got you through it is that you didn’t do it all by yourself—you likely had a co-founder, investors, advisors, employees, contractors, and even customers who supported you and your vision, not to mention friends and family who believed in you.

Then you sold your company and now you’re in a whole other tunnel, except in this one you’re not the boss. The post-acquisition period of your life needs social support, too. You need people around you who understand your unique situation and make you feel safe and heard. You need to be able to talk about your frustrations so the post-exit tunnel you’re in isn’t lonely on top of already being difficult.

Most founders struggle to find the right people to talk to about this, or they feel guilty and ungrateful for struggling. After all, selling your company is a massive win. But change is hard, your concerns are legitimate, and getting support when you’re having a hard time is the smart thing to do. So think to yourself: Who are the smart, wise people who helped you when you were building your company? Talk to them. Who are the founders you know who have been where you are now? Talk to them, too. These people will help you stay sane.

You’re not trapped

Yes, it’s true that you’re waiting for a certain period of time to pass or for certain milestones to be met before you can collect all the money due to you and leave the acquiring company. And this stipulation may have you feeling trapped. But you have to remember that feelings aren’t facts.

You are not trapped. You are not stuck. You can leave at any time. You would miss out on more money, yes, but you are not a prisoner or a hostage.

What you need to remind yourself is that you have made a measured, strategic decision—you are choosing to stay at the company that acquired your start-up because it aligns with your financial goals.

You are probably a millionaire now, and you’ll be more of one when you make it through this vesting period, but thinking of yourself as trapped will make you anxious and/or depressed because it will put you in a survival mindset. Don’t tell your brain that you are in a life-or-death situation, because you most certainly are not. Frame your post-acquisition time as a choice, and think about all the upsides of making this choice.

You’re an employee now, so act accordingly

Blood, sweat, and tears make sense when you’re building your own company, but they don’t make sense for building someone else’s. Focus on the goals you agreed to when your company was acquired and work diligently to meet them. If you don’t have a date set for when you can leave, make sure you figure this out; it’s a lot easier to tolerate a tunnel that is finite.

Because you’re an employee and not an owner, you need to change your behavior significantly. That means you should schedule vacations and completely unplug when you’re on them, work sane hours and refrain from checking work email outside of those hours, and focus on parts of your life that don’t have anything to do with work. This is often the hardest part for founders, who are just not wired to be employees. And resist the urge to get too embroiled in office politics—do what you need to get things done, and leave the rest.

In closing

Congratulations for selling your company—I hope getting support in your post-exit tunnel, remembering you’re not trapped, and changing the way you work to accurately reflect your new status as an employee will help you not only survive but thrive during this time.

Sepideh Saremi is a therapist + executive advisor who works with startup founders. She is based in Los Angeles. Contact Sepideh here. This post is informational only, and not intended to diagnose or treat any mental health condition.