Hacker News new | ask | show | jobs
by rmk 2727 days ago
My suggestion: don't. From personal experience, the founding team is given an 'earn-out', i.e., they get cash for sticking around for a fixed number of years (~2 yrs). Executives get set stiff targets in revenue growth, DAUs/MAUs etc. by the acquirer.

Once the earn-out period ends, the founding team will typically ride off into the sunset (or, more typically, found another company), leaving the rest of the company in disarray.

If the smaller company is run as an independent company and the acquirer is not in the same business, then you should strongly consider other options.

Regarding RSUs: They are still paper money. Unless the acquirer is already publicly traded, you will still be left waiting for an exit event to convert your RSUs into cash.

There are a lot of variables here, and any number of them can lead to a zero-return scenario for you. If you are hoping to make money, you will be disappointed.

2 comments

If money is the main driver, look at the package they give you: that is pretty much what you get. And if you look at startups in general, most of the people end up with very little from their stock. Funders are in a slightly better position.

If money is not the main driver, ask yourself: what would make this experience negative for you? How likely is to be worse than... (you need something to compare to) ?

In lack of a more compelling alternatives, I do not see why this could not be a great learning experience for you.

Hmm that gives me something to think about. The acquirer is in a related line of business and is aggressively expanding into that niche of said line of business.

The buyer company is publicly traded. Money isn't my main motivator but it does seem to be the slight upside in what seems to be a negative situation.