Deal Structure, Document and Liquidation Preference

The Corrosive Downside of Acquihires

Both Sides of the Table

MAY 13, 2013

If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If That’s why liquidation preferences exist – downside protection. Almost certainly the startup would have raised some capital.

Liquidation Preference

Liquidation Preference Early Stage Retention Lock-up Period

Acquihires 101: Tips for Founders

Scott Edward Walker

DECEMBER 13, 2018

How is the Deal Structured? What Legal Documents are Utilized? Acquihires will typically entail the same process and the same documentation as any other acquisition: a letter of intent, a confidentiality agreement, a purchase agreement, etc. The appeal from the startup’s perspective is a “soft landing.”.

Founder

Founder Merger IP Liquidation Preference

StartUpRoar

The Corrosive Downside of Acquihires

Acquihires 101: Tips for Founders

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