3 ms·
The big payday isn't from an IPO any more, but rather from selling out to a larger company. Big tech companies have more money than they know what to do with.
by tsotha 11y ago
The big payday isn't from an IPO any more, but rather from selling out to a larger company. Big tech companies have more money than they know what to do with.
- hkmurakami 11y agoOne benefit of this to founders is that a M&A deal provides instant liquidity (barring earn outs), whereas an IPO largely prohibits you from selling off a large percentage of your stock.
- tsotha 11y agoYeah. The founder of one of our vendors sold his company for eight figures recently. His only obligation after the sale was to stay on for six months (at an exorbitant salary) while the management structure was integrated into the new parent company. Seems like an IPO is riddled with all sorts of waiting periods and notifications and paperwork people will want to sue you over if they lose money. I'd definitely go the buyout route if the price was right.