ventox35

Sales Leader

Politicker

Catalyst

Valued Contributor

ACQUISITION TALK: the dilemma

Been job shopping. Getting close to gathering some offers. Writing is on the wall, i'm out.

BUT

Caught wind of a potential buyer for the company. I have equity. I could make >6 figures if what i caught wind of is true.

Planning to keep job shopping-this acquisition sounds too good to be true.

What if it's not too good to be true? Should i, as a shareholder, find out how real this chatter is? Should I compile job offers? Please guide my feet along the proper path WR

🧠 Advice

📉 Equity

TennisandSales

Politicker

+11

Head Of Sales

ok so you 100% need to figure out if this is real. but im super skeptical.

Also, how sure are you that you would make any money, never mind 6 figures?

what type of equity do you have?

how many shares out standing are there?

How many rounds of funding has the company gone through?

Is the company private? public? start up?

Also if you leave do you lose your shares?

Ive hear TO MANY stories of ppl making nothing.

also unless this acquisition is ABOUT to happen you could be waiting another 1+ for it to actually happen.....but if you really could get 100K...its worth to figure it out

Jan, 18, 07:19 pm (Edited)

JustGonnaSendIt

Politicker

Burn Towns, Get Money

Agreed with @TennisandSales , I have been thru this rodeo. Thankfully on the net-positive side :)

The critical thing to understand is your current shares. This will help you understand the opportunity cost of waiting VS leaving. That is... if the scuttlebutt is actually true :)

Do you own them outright? Are they RSU's or ISO's? Is the company already publicly traded or private? (I assume private).

Typically when a company is acquired, or there is external investment (essentially acquiring part of a company), there will be what's called a tender offer.

This tender offer will state an explicit price / share that the acquiring party plans to offer for the shares. It should also contain other details such as the timeline of the offer and any other stipulations (i.e. in an external funding scenario, to participate in the tender you may have to commit a minimum % of your holding or a minimum number of shares)

In the instance of an outright acquisition, one of two situations occur:

1 - Your shares are cashed out at the tender price. If they are RSU's you may have some vesting to be concerned about based on the timeline of the offer and your potential exit. If they are ISO's, you may have to be concerned about both vesting and the initial cash to actually exercise the option (particularly if you're leaving).

2 - The acquiring company will convert the shares of your current company into their shares, potentially with some ratio. This could mean you then have to execute a sale of those shares to realize the payout.

As mentioned above, there is always a consideration of the impacts of you leaving on the availability of the shares, which is driven by what kind of shares they are and the agreement that provided them to you.

Jan, 18, 07:28 pm (Edited)

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ventox35

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