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by yuliyp 5080 days ago
I'm having a tough time understanding talent acquisitions.

You have a set of people working for the startup and the outside investors in the startup, and you have an outside company trying to purchase them. The outside company offers $X for the company in an acquihire. Let's say all the outside investors own fraction Y of the company. Why can't the outside company offer a total of X * (1-.5Y) in signing bonuses to the people in the startup, leaving both them and the employees strictly better off? Are founders and early employees just walled off with non-competes to make this not realistic?

1 comments

This is explained well in this thread: https://news.ycombinator.com/item?id=4272973