That's not a classic "Startup" horror story. That's a classic "Built to Flip" horror story. One of many reasons why selling is not an desireable business-model strategy.
There are reasons to sell a startup aside from having built it to flip. It can even happen in a startup that the founders had every intention of building into a big sustainable business. Many times, it's because the founders and/or investors have "checked out" of the business and want a quick return on their time.
