When you picture selling your company, it feels like a big headline moment — the press release, the handshake, the payoff. But as we heard firsthand at Innovation Factory’s recent ‘Fireside Panel: Start-up Acquisitions – Lessons from the Frontlines’ the real story is more complicated, more personal, and often more emotional than you’d expect.
We welcomed a group of seasoned founders — Stephanie McLarty from REfficient, Julie Ellis from Mabel’s Labels, and Fabian Raso from Hangry, along with Kelly Dore and Matt Holland from Acuity Insights to share the lessons they learned on the road to acquisition, and what life looks like after the deal is done.
This discussion was hosted by Gowling WLG, an international law firm with a strong track record of helping businesses grow and succeed. Whether you need support protecting your intellectual property, building commercialization strategies, or getting connected to financing and professional services, Gowling WLG can help you scale faster. As an Innovation Factory innovator, you can tap into Gowling WLG’s expertise and networks to move your business forward.
From navigating due diligence and negotiating term sheets to managing post-sale identity shifts, the conversation was rich with honest insights and practical advice. Here’s a closer look at what these founders wish they knew before, during, and after selling their companies.
Building with value in mind
When McLarty founded REfficient in 2010, selling wasn’t even on her mind. It wasn’t until a brush with near-bankruptcy three years later that her Innovation Factory advisor encouraged her to think differently: to see the value she had built, and to recognize how another company might want it. “What is the value you’re creating that would be useful for someone else?” her advisor had asked— a question that changed everything. Years later, that shift in thinking would help her navigate a successful sale to Quantum Lifecycle Partners in 2022.
For Raso, acquisition was always part of the plan. While growing Hangry, his mobile ordering app for university campuses, he had partnered early with a company that later became his acquirer. “When we did the original partnership, they had discussed acquisition,” Raso said. “I knew it was something they were looking at as a build-or-buy solution, but I always worried they would build it themselves.” What ultimately changed the game was a leadership shake-up on their side. “Usually the buyer has to have something that changes — a new CEO, a new budget, a new owner.”
Ellis’ experience building and selling Mabel’s Labels was rooted in protecting the culture they had worked so hard to build. She recalled how important it was to find a buyer that would respect not just the brand, but the people behind it. “We weren’t selling the brand. We were selling everything inside.” When Avery, a division of Toronto-based CCL Industries, approached them, Ellis and her team weren’t actively looking to sell — but they were ready to have the conversation. “Never say no if someone wants to talk about buying your business. Even if you’re not for sale, it’s always good to hear where you stand in the market.”
Why culture fit matters
Culture alignment was a recurring theme throughout the discussion. From the perspective of an acquirer, Holland and Dore, emphasized how important it was to demonstrate respect to the team they were merging with. During COVID, when face-to-face meetings were rare, Holland and his team still got on a plane to meet the company they were acquiring. “We didn’t ask them to come see us. We went to them. It was a small but important signal that showed we respected what they had built.”
Ellis echoed the sentiment when describing how important it was that her company stayed in Hamilton after the sale. “We had people who lived here. We didn’t want a buyer that would push us to a corporate campus somewhere else. We wanted them to see value in what we had already built — the people, the community, the culture.”
Expecting the unexpected
Not every acquisition moved at the same pace. Raso’s deal took 13 months to close, and he described the experience bluntly: “The biggest surprise? How long it took. You’re running the business, you’re negotiating the sale, you’re dealing with lawyers, and you’re trying to keep it all secret. It’s exhausting.”
In contrast, McLarty’s sale to Quantum moved much faster — about four months from first conversation to closing. But speed didn’t make it any easier. “I never worked so hard in my life,” she said, recalling the relentless due diligence process. “I became best friends with my lawyer.”
Ellis emphasized the importance of preparation to survive the acquisition process. “We had really good practices. We had employment contracts, we had a strong external accountant, we had clean books. If we hadn’t, there’s no way we could have closed our deal in five months.” She described the experience of managing a massive spreadsheet of deal documents, pulling together everything from contracts to intellectual property records, and making sure nothing fell through the cracks.
Closing the deal, the panelists stressed, is just the beginning — not the finish line. “Closing day is actually the starting line,” Ellis said. “You think the buyer knows everything about your company because of due diligence, but on day one, they know nothing.”
The emotional aftermath
The emotional side of selling wasn’t something most of the panelists were prepared for. McLarty recounted becoming really emotional about four months after the sale. “My boss asked me a simple question about a new project, and I just started crying,” she shared. “It was like a lid had been opened. I realized I hadn’t given myself time to process the grief of selling my company. I was trying to put the new Stephanie into the old box, but the old box didn’t exist anymore.”
Ellis also reflected on the identity shift. After leaving Mabel’s Labels, she admitted it took time to find her footing. “You have to add before you subtract,” she said. “I subtracted my whole business identity without building something new first, and it took me a long time to get going again.” Today, Ellis is a published author, podcaster, and advisor, helping other entrepreneurs build their own journeys.
Raso’s adjustment period was no less complicated. “There were weeks where I would just tell people, ‘I’m lost,’” he said, describing the strange transition from high-speed entrepreneur to life without deadlines. “You think once you sell the company, everything will be easy. But it’s hard in a different way.”
Despite the bumps, each panelist found their new rhythm. McLarty remains at Quantum, having carved out a role that gives her both purpose and flexibility. “I work four days a week on an 80% schedule, and I still get to lead sustainability efforts for a growing company,” she said. “It’s a sweet spot.”
Dore and Holland, meanwhile, are focused on scaling Acuity Insights even further. With growth comes new challenges — but also new opportunities to shape the future of the company they’ve built.
Advice for founders
Throughout the conversation, a few themes stood out about what founders can do now to build a business that’s not just successful, but highly acquirable.
McLarty pointed to the importance of networking and building relationships long before you think you’ll need them. “Each acquisition Quantum has made started with a relationship. It wasn’t a cold call — it was a connection.”
Ellis stressed the importance of having the right advisors. “If you’re wondering whether your advisors are good, you probably need better ones,” she said, describing how her accountant, lawyer, and operational advisor worked with her daily through the five-month sprint to close her deal.
Raso emphasized running a healthy, profitable business and staying focused. “If you’ve got lots of cash in the bank, that’s the best time to raise money. It’s the same with acquisition. The best deals happen when you don’t need to sell.”
And Holland added, “An acquirer isn’t just buying what you’ve built today. They want to see the dream. Be able to paint the picture of what the future looks like.”
Finding the next chapter
The biggest takeaway from the panel was that every acquisition journey is different, and no matter how much you prepare, it will challenge you in ways you don’t expect. But with a strong business, a clear vision, the right support, and a bit of patience, selling your company can open a new chapter filled with fresh opportunities.
And when that chapter comes, don’t be afraid to ask for what matters — whether that’s financial security, flexibility, or the freedom to create something new.
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