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by MediumD
2645 days ago
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"The price total of the acquisition is about $166 million, with $154 million in cash and the remainder in restricted shares." Is it normal to have nearly the entirety of the acquisition be cash? I would have assumed the standard would be shares with a new vesting schedule to incentivize the founders to stay on board. To my uneducated self, this seems like the founders can basically immediately walk away with very little money left on the table. |
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They get around the founders leaving issue by adding earn-outs and various contractual clauses to make it in the founders' best interest to stay.