3 ms·
Company "worth" 10M. They buy $2M "worth" of shares for $1.5M. Acquire company, now "worth" $50M and liquid. Profit. (Numbers just for example)
by edoceo 6y ago
Company "worth" 10M. They buy $2M "worth" of shares for $1.5M. Acquire company, now "worth" $50M and liquid. Profit. (Numbers just for example)
- vmception 6y agoah okay, sounds like something I would do while there isn't price discovery. I often times go steeper (how about $1 for the whole grant) so people can afford the 83(b) election to buy the underlying asset and have it just sitting as capital gains instead of ordinary income, it turns out the vesting period for restricted units is not regulated at all while giving you all the capability to play around with discounts and elections.