Two Weeks from Closing, We Walked Away (Lost $70K)
For the past year, I stepped away from a traditional career path to pursue entrepreneurship full time. My thesis was simple: acquire a healthcare software company, modernize the technology stack with AI, and create a platform that could significantly increase enterprise value while improving healthcare operations. During that time, I explored multiple ideas at the intersection of AI and healthcare, built prototypes, spoke with customers, and ultimately spent the last five months pursuing the acquisition of a healthcare software company. My cofounder and I were just two weeks away from closing. We had raised nearly $2 million in investor commitments, secured bank financing, and invested approximately $70,000 in legal, diligence, and related expenses. In the final stretch, several issues surfaced that we could not ignore: - EBITDA appeared to be materially overstated - The bank appraisal uncovered additional concerns (50% in discrepancy) - We were unable to complete the level of technical diligence needed to gain confidence in the underlying software platform - Aggressive APA terms; multiple covenants that restricted us to grow the new business effectively. After months of work, we made the difficult decision to walk away. I can’t in good faith, put my investors money into this. My job is the CEO to protect them first. It was one of the hardest professional decisions I have made. The experience was emotionally exhausting, but it reinforced one of the most important lessons in acquisitions: sometimes the best deals are the ones you choose not to close. Over the past year, I have learned more about healthcare infrastructure, acquisitions, fundraising, and myself than I ever expected. Most importantly, my long-term vision has not changed. I want to build and own multiple businesses that improve critical industries, particularly in healthcare. For now, I am taking some time to rest, reflect, and think carefully about what comes next. That may involve another acquisition, building organically, joining a healthcare technology company, or some combination of all three. I am deeply grateful to everyone who supported me throughout this journey. If you have experienced a failed acquisition or a difficult entrepreneurial chapter, I would love to hear what helped you recover and how you found your next opportunity.