This is an excellent post, and I'll use it as a guideline when it comes time to hunt for jobs. That said, I'd like to disagree with a few of your assumptions:

This is an excellent post, and I'll use it as a guideline when it comes time to hunt for jobs. That said, I'd like to disagree with a few of your assumptions: 1. You've overvalued overtime, as 30% is probably too high for overtime relative to a bigco job, which is what he would arguably take instead of this. 2. Drop career risk (which is beyond immeasurable) and opportunity cost (this is captured by his foregone market rate). I also have a question about the expected value of the company's valuation. We've got that down at $2.5 million, and base our equity calculations off of that. However, is the valuation the expected value of all outcomes, as calculated by investors? I assume so, but if not then he will need to consider the average value of all possible scenarios (or, more simply, the likelihood that the company sells for $2.5 million). There's a high probability the company fails or does not sell for $2.5 million, and he needs to factor that risk into equity valuation (if the company valuation does not already incorporate that risk). EDIT: funny that I was downvoted--I don't believe I said a single disagreeable thing here (maybe the overtime?)