M&A

My Company's Being Acquired: What Happens To My Stock Options? (Part 1)

Richard Lintermans
What happens depends on the terms of your option grants, the terms of the M&A deal, and the valuation of your company's stock.

My Company's Being Acquired: What Happens To My Stock Options? (Part 2)

Richard Lintermans
Your company is being acquired. You worry about losing your job and your valuable stock options. In Part 1 we looked at the importance of your option grant terms. Part 2 examines the acquisition's terms and the valuation of your company.

My Company's Being Acquired: What Happens To My Stock Options? (Part 3)

Richard Lintermans
Part 1 looked at the importance of your option grant terms. Part 2 examined the acquisition's terms and the valuation of your company. Now let's look at the tax treatment.

The Acquisition: All's Well That Ends Well?

I was hired by Company X and received equity pay that might have been worth between $300,000 and $400,000 at our IPO -- not bad, except that we never went public.

Understanding The Risks In Your Pre-IPO Stock Options (Part 1)

Edwin L. Miller, Jr.
Understand what could happen to your stock options or restricted stock in venture capital financings, in an acquisition, or in an IPO. Part 1 looks at M&A deals; Part 2 analyzes IPOs.

Private Equity Transactions: Understanding Some Fundamental Principles

Jeffrey Blomberg
Business Law Today
If your company is acquired by a private equity firm, your stock compensation will change. For key managers, its importance may increase, though new restrictions may apply.

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What will happen to my vested stock options if my employer is acquired by another company?

Your vested stock options may be handled in any of the following ways in an acquisition, depending on the deal's terms and any limits in your stock plan. For example, they could be rolled over into...

What will happen to my unvested stock grants if my company is acquired or if it merges with another company?

In a merger or acquisition (considered a "change in control"), there are many possibilities. Study the terms of the stock plan and any individual grant agreements with special provisions, and examine the way the acquisition is structured. Some companies...

A private equity firm is buying my company. What will happen to my stock options and restricted stock?

The vesting of the grant will probably accelerate according to specifics in your stock plan or grant agreement. The grants will probably be cashed out. Depending on your level in the company and the length of your employment, you may receive a meaningful grant in your newly private company that will require you to...

In an acquisition, what happens to my underwater stock options?

This depends on the provisions in your stock plan and the structure of the merger or acquisition. According to the flexibility for adjusting outstanding grants that your company's stock plan provides, the buyer can...

NEW! What happens to my performance shares in an acquisition of my company?

For a change in control (e.g., a merger or acquisition), the performance period for measuring whether goal(s) are reached is cut short. Commonly, performance share plans...

What happens to my stock options in a part-cash, part-stock deal?

When the consideration paid in the acquisition or merger is a combination of stock and cash, the treatment of outstanding equity grants varies more than it does in all-stock or all-cash transactions. In a business combination, most stock plans require...

According to the terms of the acquisition, all my stock options will be converted to those of the buyer. How do I ascertain the number of options I will have and the exercise price?

Options typically convert according to the negotiated values of the target's and the acquirer's stock at the time of acquisition...

My company is selling the small division I work for. I will no longer work for the company but will still have the same job, with new corporate owners of my division. What will happen to my options in the divestiture?

Check your stock plan to see if it addresses this type of divestiture in which just a small division or subsidiary is sold...

I see many different terms used to describe corporate transactions. What is the difference between a merger, an acquisition, and a divestiture?

It's important to know the difference, as this can trigger changes in your outstanding stock grants. An acquisition of a company occurs when...

What's the tax treatment of my stock options in an acquisition?

This depends on how stock options are treated under the terms of the deal. For example, if you are receiving for your options...

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