Start-Up Bought Out, what happens to shares?

Question

Interviewed with a pre-ipo unicorn and they extended an offer but have no RSU's or stock options because they got bought out by a private equity firm. What happens to the people who had stock before the acquisition?

GlassesDude · Accepted Answer

Following for answers cuz I am also curious. It's moments like these that I wish I knew more about M&A's.

6ym891ukphg5xkq · Answer

Depends on the type of acquisition. Good startups will accelerate your vesting if you've been at the company and pay you out for your appreciated grant. However, they can also just compensate you for your vested shares and then, depending on how core you are to the company add in a new retention compensation package, which might have large bonuses in tranches over a few years.

If you join after acquisition you can supposedly still get equity but it's hard to tell what the intentions are for the company longer term. Since they aren't giving you equity in this case, you should absolutely ensure you maximize your cash + bonus.

Taylor · Answer

It's a big DEPENDS. Sometimes the shares are converted to acquiring company shares, sometimes the shares are bought at a set amount. There are lots of ways it could play out. Ask your coworkers.

Start-Up Bought Out, what happens to shares?

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