Inside 23andMe’s $400 Million Acquisition of Lemonaid Health
“Paul Johnson founded Lemonaid Health in 2013 and sold his business in 2021 for $400M in cash and stock. This is an amazing story of how an entrepreneur is able to start a digital business and successfully sell it,” shares Sam Thompson a Minneapolis M&A advisor and the founder of M&A firm Transitions In Business. “The podcast includes tips on maximizing your chances of hitting your earnout numbers and how to tell your employees you are selling.”
In 2013 Paul Johnson founded Lemonaid Health, one of the first digital healthcare platforms designed to offer virtual medical consultations and prescription services online.
While the company got off to a slow start, the pandemic accelerated the adoption of online healthcare. By the end of 2021, Lemonaid had agreed to be acquired by the DNA-testing outfit 23andMe for $400 million of cash and stock. In this episode, you’ll learn how to:
- Establish a vesting schedule with a cliff provision when allocating company shares to safeguard your interests.
- Use a convertible note as a financing tool for your business.
- Strategically position your business to attract potential acquirers.
- Maximize your chances of hitting an earnout.
- Assess stock liquidity during the acquisition process.
- Tell your team about your decision to sell.