We usually called it the liquidation stack. Because of different trigger points, whether different investors are participating or non participating, you needed

We usually called it the liquidation stack. Because of different trigger points, whether different investors are participating or non participating, you needed a spreadsheet to figure out what common gets, for each potential outcome. There is no way to have a conversation with a potential employee about the liquidation stack, it is usually far too complex. More insideously, the buyer can change the rules. As long as the sellers vote for it, you can do things like wash out common, recap common, give new grants that are incentive grants with a one year cliff. Option holders don't vote, so you won't even see what they are voting on. That kind of stuff invites shareholder lawsuits, but it is ill advised to sue because then you are a trouble maker. Otoh, not suing means you are a pushover. An example of a shareholder wash out was when jobs took over pixar, so i was told by a friend who had shares.