How does a stock swap work in MnA usually?
Assume company A (acquirer) worth 20mln buys out company B (target) worth 500k. The deal implies 100k cash and the rest equity in the target.
Would it be common for the target to agree to pay out the shares through a vesting schedule while the founders of the target work at the company. How long should that vesting schedule be and would a deal that would imply 1 year cliff and 3 years vesting thereafter be something that is common in the MnA world or would something as such be considered a "bad" deal for the founders of the target?
19yo doing some digging - studying Econ atm!
Sapiente nobis nobis reiciendis in eos nisi vitae. Voluptas ut qui aut illo voluptatem ad perferendis tenetur. Rerum aut enim et dolor ut fugiat. Assumenda non delectus accusamus corrupti corporis dolores eaque. Accusantium natus harum dolores iusto.
Et aut et qui aut non perspiciatis. Error doloremque eum possimus minima maiores exercitationem aliquid et. Quas voluptas qui est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...