4 ms·
Yep. Many / most aquihires are pretty ugly financially. While the headline sounds impressive (“X startup acquired for $250M”) the reality is that with preferred
by JCM9 1y ago
Yep. Many / most aquihires are pretty ugly financially. While the headline sounds impressive (“X startup acquired for $250M”) the reality is that with preferred cap tables and terms most folks see nothing and investors are merely trying to recoup some losses or make a modest (less than S&P500 index fund return) return on investment. It’s basically a fire sale to salvage what’s left from the wreckage.
Founders might get a little something and most shareholder employees get nothing.
- nkingsy 1y agoDon’t they usually get a better stock package than the average new hire?
- gdbsjjdn 1y agoIn my experience what the founders usually get is a bigger locked up retention package. The investors want the cash, and the acquirer wants the founders to stay.
- deleted 1y ago[deleted]
- mandevil 1y agoThe employees along for the ride on an acquihire? Sometimes yes, sometimes no. Depends a lot on how generous the founder/target of the acquihire is.