YoungUpstarts

MAY 17, 2019

The employees depend on their expertise and training. The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Both Sides of the Table

MAY 13, 2013

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. And wants to structure a huge payout for the employees that will remain.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Scott Edward Walker

DECEMBER 13, 2018

The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. How is the Deal Structured? As discussed below, this structure exposes the founders to potential legal liability resulting from their breach of fiduciary duties as directors and/or executive officers.

Founder 45

Founder Merger IP Liquidation Preference 45

David Teten

OCTOBER 1, 2015

intrapreneurs, e.g., the employee of GE who is tasked with launching a new business. I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. mentor VCs, e.g., most VCs.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60