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by vidarh
4177 days ago
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$2M for an acquisition on top of an employment offer vs. $1M-$2M in salary and RSU's are vastly different in value. The acquisition pathway with your numbers would be 2-3 times the value before you discount the present value of the salary and RSU's because of the additional risks associated (even assuming the acquisition amount would be similarly restricted and spread out over time). It seems like you assume that an acqui-hire would mean he'd sell and then not get a salary for four years. |
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Point being, there's nothing scammy about a deal being negotiated down, or falling through, and ending up as an employment offer instead of an acquisition, especially if they're only interested in the person, not the company, an acquisition is really just the 'shut down' cost of your business.
Deals fall through all the time and valuations can get reduced once due diligence is done. A business which looks great from the outside can look much less interesting later. And of course, during talks, the other side -- who are usually interested in investing in people -- could become less impressed with you.