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Certainly, it's all part of the negotiation. You could negotiate retaining x% of the stock (along with rules regarding stock type, splits, etc.). Another common
by code_Whisperer 6y ago
Certainly, it's all part of the negotiation. You could negotiate retaining x% of the stock (along with rules regarding stock type, splits, etc.). Another common negotiation when selling your startup would be to retain a position (e.g. lead developer, marketing manager, even CEO!) for x months or years. Or an option for right of first refusal to buy it back if your purchaser ever decides they want to sell the company (or its assets) in the future. Everything is negotiable, but you should always have a lawyer help work out the agreements and details.
- photon_off 6y agoThanks for the insights. > You could negotiate retaining x% of the stock (along with rules regarding stock type, splits, etc.). Is this at all common? I would imagine that upon acquisition the buyer would prefer to simply roll the company into their own, rather then have to run it as a separate entity. Though, like you said, I imagine this can be negotiated.
- code_Whisperer 6y agoI am unsure how common it is, but I do know that for many entrepreneurs it can sometimes be painful to sell your company/product/culture/idea that you have worked on for so long and for so hard, so I think it is a way for creators to remain part of their creation. :-)