Do shares get forward vested in an acquisition?

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JASON LEMKIN

Rarely, unless the option agreements or bylaws or other legal documents require it.  And even here, there are often (but certainly not always) re-negotiated in acquisitions especially of earliest-stage companies.

And when they do “forward vest”, or accelerate … it’s usually a behind-the-scene negotiations between the CEO and the acquirer.

Part of the reason they’re buying you is the team.  The entire reason, the main reason, or part of it … it varies.  But part of it.

Vesting isn’t perfect.  It’s a handcuff.

But it keeps people in their chairs.

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Published on September 10, 2015
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