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The advantage for those employees being acquired is (typically) a liquidity event for their current shares. Say Acme, Inc. buys Little Guys N Me for 10 mil....
by ironchef 14y ago
The advantage for those employees being acquired is (typically) a liquidity event for their current shares. Say Acme, Inc. buys Little Guys N Me for 10 mil....and you are an employee of Little Guys N Me to the tune of 1% (or such). Depending on wording of your shares, this could mean a quick 100k..or there could be another cliffing / vesting situation. Also there will often be golden handcuffs put on (that are nicer than coming to the company independently)...so more shares of Acme, Inc. than one would get independently.