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Start a deal room and keep it current.

Berkonomics

Well-maintained deal rooms enhance a company’s image with a buyer, quicken the pace of the deal, help maintain secrecy from employees while due diligence is in process, and lower the stress levels of all parties during the process. Email readers, continue here.] The liquidity event and beyond'

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Have you heard the rule of the thirds?

Berkonomics

So, co-management is the second group to share in the bounty upon a liquidity event. Email readers, continue here…] Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees.

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What’s your personal-business end game?

Berkonomics

Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale. But most of us dream of selling the business someday for lots of money and building our wealth upon that event. Your skilled employees?

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What’s a “data room” and how do you use it?

Berkonomics

Well-maintained deal rooms enhance a company’s image with a buyer, quicken the pace of the deal, help maintain secrecy from employees while due diligence is in process, and lower the stress levels of all parties during the process. When to start a data room?

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Why not share your liquidity success with those who got you there?

Berkonomics

Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. I found myself in such a situation upon a sale of my computer software company. And a lack of plans for others.

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The Rule of Thirds

Berkonomics

Email readers, continue here.] So co-management is the second group to share in the bounty upon a liquidity event. Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees.

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Does even a taste of ownership make a difference?

Berkonomics

How about incentives for employees all the way down the line and through the corporation? But how about awarding stock options to all employees? . Tech companies, particularly early stage and startups, still award options aggressively. Email readers continue here.]