3 ms·
Good points already posted, especially about buy-out being a multiple of earnings not just based on one year. A few other things to think about: why is the foun
by jseeff 11y ago
Good points already posted, especially about buy-out being a multiple of earnings not just based on one year. A few other things to think about: why is the founder trying to buy you out? No one just pays for equity buy-back without a reason. It might be as simple as "minimising shareholders" for administrative reasons, but it may also be something else. A $2160 check is a nice thing to have but it isn't a huge amount so it may be better to keep the equity. If you do agree to sell, I would recommend some "protections" for example, if the company gets sold in the next [X] months (or even years), you get paid the difference of value or even, if profits hit [Y] any time in the next [Z] years, you get an earn-out of some kind...