Startup Funding Espresso – Life After the Buyout

Life After the Buyout

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Life after a company buyout will be different for the founder.

Here are some key areas to prepare for:

In some cases, the founder will have an earnout that provides additional compensation for meeting revenue or earnings goals.

For those who gain stock in the new company, there may be revesting requirements.

This means the founder must stay for a time period as they revest their ownership in the new stock. 

This is similar to the vesting time for a startup in which the founders have to re-earn their shares in the company.

Most founders will be required to stay with the company for the integration phase.

For the integration, create a plan with a timeline and gain approval from the owners, employees, partners, and other stakeholders.

This includes setting up new communication channels, and organization charts, as well as removing redundant employees and suppliers.

Finally, the purchased company must meld into the acquiring company’s culture.

Most transitions take a minimum of one year to complete unless the acquired company is very small.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact [e-mail]   

Please follow, share, and leave a review.

Music courtesy of Bensound.