lowhangersalesbanger profile picture
lowhangersalesbanger profile picture

lowhangersalesbanger

Director of Sales

Executive
Catalyst
Opinionated
+6

Exercise my options or just leave it?

Before I left my last company I had a little less than 10,000 shares vested. Later this month is the cutoff for me buying those shares or losing them. It would only be a few hundred dollars to take the equity. I have virtually no faith that the company will go anywhere in the future, and I would not be shocked if the board forced the sale of the company's IP/software in the next 12 months.


Knowing that and nothing else, what would you savages do?

Buy shares of a (likely) dying company or nah?

Attached poll
*Voting in this poll no longer yields commission.
🤷‍♂ Poll
📉 Equity
17

20 comments

Sort by:
CadenceCombat
Tycoon
12
Account Executive
If it’s truly a dumpster fire company, don’t bother but even if there’s a 10% chance of a return, I’d say take the gamble.
CuriousFox
WR Officer
4
🦊
It's hard to argue this point.
CPTAmerica
Opinionated
8
President/CRO
A few hundred bucks sounds like it's worth it to me. Should be pretty easy to do the math to see if it's worth the risk. Run the numbers on best, worst, and middle ground valuations. If you'd be ok with the worst case go for it.
Kosta_Konfucius
Politicker
3
Sales Rep
Run the numbers? Numbers do not have legs though
SoccerandSales
Big Shot
1
Account Executive
ha GOT EM
CPTAmerica
Opinionated
2
President/CRO
That's why you run them and not the other way around ;)
Pachacuti
Politicker
3
They call me Daddy, Sales Daddy
I'd buy the shares. You never know what may happen. A dying company might be picked up by a bigger company who's shares are actually worth something.
braintank
Politicker
2
Enterprise Account Executive
Go out for a nice dinner.
butwhy
Politicker
2
Solutions Engineer
I say nah, even a PE acquisition will probs be a fire sale and nobody is getting a cent.
RandyLahey
Politicker
2
Account Executive
Relatively low risk to buy the shares, with a good risk/reward ratio. Buy em...
Maximas
Tycoon
2
Senior Sales Executive
Go for it before it's totally gone!
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
If you can afford the risk, why not?
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
You also don’t have to exercise all of your shares. If the full boat is too much then exercise half or what ever % you would have no issue losing if it burned to the ground.
FinanceEngineer
Politicker
1
Sr Director, sales and partnerships
Would it be worth the lottery ticket? Also, did they raise any money since you were granted and today? If so, 100% but it. If not, depends
lowhangersalesbanger
Executive
0
Director of Sales
No additional raise. I do know from my own elbow rubbing our investors are unhappy and that they dislike the founders/ leadership at this point. I don’t think they could raise another cent
FinanceEngineer
Politicker
0
Sr Director, sales and partnerships
Then a forced sale looks like it is in the cards. If that’s the case, I’m not sure if you will get your cash out, but might be a pass (have done that in the past).
Diablo
Politicker
0
Sr. AE
what's your gut feeling as you have been with the company? There is always a risk - you'll get some or lose all and if you're scared of losing why not just invest.
MoreCompassion
Opinionated
0
Account Executive
What's the difference in your exercise price and the price in the most recent raise?
clients4u
Member
0
Client stuff
Buy the shares if you can afford it. It’s a low price to keep upside exposure even if it’s a long shot chance they appreciate. If the board forces a sale, you could net a return since they’ll try their best to sell at better than break even. Speaking from past experience here.
charlescarmichael
Good Citizen
0
Senior Sales Engineer
I’d buy the shares for a few hundred bucks. You’re probably a kickass sales person and so your first commish check at your next sales role will cover that easily.

Just consider it $ you’re never going to get back, and if it does lead to something, it will be a nice surprise

Also note that if it’s a preferred share program, even in a liquidation event where shareholders are paid out, yours could be lower priority where there isn’t a payout at all. Just something to be aware of

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