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Great, insightful reply from somebody who's been there. As someone who has not been there and has zero experience in this, I'm left wondering whether you had m

by kohanz 12y ago

Great, insightful reply from somebody who's been there. As someone who has not been there and has zero experience in this, I'm left wondering whether you had more leverage to ask for "X,Y, and Z" before the deal closed. Not from the acquirer (avoid risking the deal), but from your employer. Surely if you explained the situation and how it is relatively unfair from your perspective, they might be able to negotiate on your behalf?

trcollinson 12y ago
Great question! And yes I actually did do that. However the owner of the company I was working for (the company that was being acquired), was not helpful at all. We were quite good personal friends from high school. What happened was unfortunate. We had really turned his company around together and made some great strides in a short period of time. We had talked about my exit from the company from the very moment I arrived. However, when the time came to be acquired he became rather greedy. He even said to me at one point, "Your portion shouldn't have to come out of my hide." At any rate, the relationship deteriorated, which is not uncommon when a company is being bought or sold. We kept our smiles on until the acquisition was complete.
- kohanz 12y ago
  Really appreciate your candid reply. That's a shame. In the end I imagine people regret forsaking relationships for material gains, but greed is a powerful force. Have you participated in startups since then? Did you take any extra precautions after this experience?
  - trcollinson 12y ago
    He and I have, since that time, made up. Which is a nice thing! But yes, greed really ruins things. It is quite powerful. I have been involved in start ups in two ways in the mean time. First, I have built up and sold my own small start up. This was much easier though as I was the sole owner and employee. Throughout my time building it up I did occasionally hire contractors and consultants on a 1099 basis. Overall, this made selling the company and assets a whole lot easier. Second, I have worked for start ups, quite a few actually. But at this point I actively will not take an equity stake in any start up I work for. I always work hourly and get paid my standard rate for any work produced. In this time I have been involved with two start up sales. They were much easier on me, the owners, and the acquirers. Basically, I had been paid all along what I felt was fair so I didn't try to get anything out of the arrangement as it was being sold. I could be very focused on the owners best interests and not my own. In the end, both gave me substantial bonus amounts for my help and trouble and we all walked away happy. I also contracted with both of the acquirers after the fact in these cases. Again, everyone was quite happy.

by kohanz 12y ago

trcollinson 12y ago

Great question! And yes I actually did do that. However the owner of the company I was working for (the company that was being acquired), was not helpful at all. We were quite good personal friends from high school. What happened was unfortunate. We had really turned his company around together and made some great strides in a short period of time. We had talked about my exit from the company from the very moment I arrived. However, when the time came to be acquired he became rather greedy. He even said to me at one point, "Your portion shouldn't have to come out of my hide." At any rate, the relationship deteriorated, which is not uncommon when a company is being bought or sold. We kept our smiles on until the acquisition was complete.

kohanz 12y ago
Really appreciate your candid reply. That's a shame. In the end I imagine people regret forsaking relationships for material gains, but greed is a powerful force. Have you participated in startups since then? Did you take any extra precautions after this experience?
- trcollinson 12y ago
  He and I have, since that time, made up. Which is a nice thing! But yes, greed really ruins things. It is quite powerful. I have been involved in start ups in two ways in the mean time. First, I have built up and sold my own small start up. This was much easier though as I was the sole owner and employee. Throughout my time building it up I did occasionally hire contractors and consultants on a 1099 basis. Overall, this made selling the company and assets a whole lot easier. Second, I have worked for start ups, quite a few actually. But at this point I actively will not take an equity stake in any start up I work for. I always work hourly and get paid my standard rate for any work produced. In this time I have been involved with two start up sales. They were much easier on me, the owners, and the acquirers. Basically, I had been paid all along what I felt was fair so I didn't try to get anything out of the arrangement as it was being sold. I could be very focused on the owners best interests and not my own. In the end, both gave me substantial bonus amounts for my help and trouble and we all walked away happy. I also contracted with both of the acquirers after the fact in these cases. Again, everyone was quite happy.