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Depends on whether it is an all cash, all stock, or mixed deal. Typically a "shotgun" clause is triggered and all employees immediately vest and cash out. Fou
by matchagaucho 10y ago
Depends on whether it is an all cash, all stock, or mixed deal.
Typically a "shotgun" clause is triggered and all employees immediately vest and cash out.
Founders, however, negotiate "earn out" clauses with the acquirer, which provides some upfront cash with the balance to be paid out over time, contingent on performance or retention goals.
- WalterSear 10y agohttps://www.quora.com/What-is-the-difference-between-single-trigger-and-double-trigger-acceleration-of-vesting-in-connection-with-a-merger-acquisition-or-other-change-of-control https://www.quora.com/What-is-the-difference-between-single-...