Ask HN: My company is being acquired. How can I maximize my upside as an IC?
The startup I work at is getting acquired. Unfortunately management won't (can't?) share anything but vague details. My main concern given the timing is that the valuation will be low and what's left of my equity will be eaten up by investor liquidation preference. Not sure there's much that can be done at this point, but I'm interested to get people's advice, both for what I can do now and for what I could have done earlier.
Will companies tell you what stock is actually worth at different valuations when you join? This seems like far more valuable information than the valuation as of the last round.
Can you negotiate with the acquirer for a retention plan? Unfortunately, as an individual the power balance is very much not in my favor. Has anything like a pop-up union ever been used to get a seat at the table on behalf of the employees?
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Your compensation and retention is between you and your boss, whoever that is. You are unlikely to get good results by skipping the management chain and asking the acquirer for special treatment. But you should be able to have professional discussions with your boss about your value, and negotiate from there.
There is little chance that you can get a seat at the table for the actual acquisition. That simply isn't how acquisitions work, not unless you already hold a role where the leadership includes you in strategic discussions.
In short, talk to your boss about all your concerns.
Normally, you should first talk to the majority shareholders. Then talk to management, because they only act on behalf of the majority shareholder (I assume they are the same in your case). You could mention that it is your right to know. If they are still not transparent, try talking to a lawyer or somebody that you know has a similar contract in the same state and industry as you.
FYI: I am not a lawyer and this is no legal advice :)
The tricky part is whether the valuation number you have is what the company is paying to buy your company or if it's the overall value. If it's the overall value, then you need to subtract your company's outstanding liabilities.