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Re:Should We Celebrate Acquisitions? by blululu on Sunday May 15, 2022 @10:28PM (#31393193)
Salaries, rent on office space, equipment... If a company raises $50M in funding, spends $30M in four years before it gets acquired for $80M, then net-net the investors have same amount of money after 4 years of work.
Re:Should We Celebrate Acquisitions? by benjaminwootton on Sunday May 15, 2022 @10:46PM (#31393260)
Eh? If you spend $30m and get $80m back you are in the black to the tune of $50m overall, even though your investors would probably be underwater.
Re:Should We Celebrate Acquisitions? by forrest2 on Monday May 16, 2022 @04:39PM (#31402882)
Investors usually have liquidation preference. If they do, they'll have a first dibs on that $50m up to their invested amount.