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I worked for match group as a C-level executive and had a equity structure that was similar, but on a way smaller scale. They use outside firms and a methodolog
by bamorgan 8y ago
I worked for match group as a C-level executive and had a equity structure that was similar, but on a way smaller scale. They use outside firms and a methodology called baseball arbitration to come up with a FMV. Although I didn't like some of the decisions that impacted the value of my equity, I was always treated fairly.
- ed 8y agoIs this also known as pendulum arbitration? https://en.wikipedia.org/wiki/Pendulum_arbitration https://en.wikipedia.org/wiki/Pendulum_arbitration I assume the bank acts as arbitrator, and IAC is one of the parties proposing a valuation? How do they remove the bank's incentive to side with IAC?
- bamorgan 8y agoYeah, basically. If the founder disagrees with IAC's/Match's valuation, they can come up with their own valuation and the "independent" outside party picks the winner, with no modifications.
- baud147258 8y ago> with a FMV What's a FMV? F*ck My Valuation? /joke I think it's a for fair market value?