❗Successful Acquisition - What’s Next for Founders❓
To leave or not to leave post-exit.

👉 Founders: Understand what tactics acquirers use to better negotiate your
deal.
👉 Acquirers: Use the right strategy to retain top talent.

Why do founders leave after their startups are acquired?
→ Incentives (or lack thereof).

Jason M. Lemkin co-founded and sold two successful start-ups (EchoSign, acquired
for $400M by Adobe and NanoGram Devices, acquired for $45M by Wilson Greatbatch)
and now manages a $70M+ VC fund.

His thoughts on what acquirers do to get founders to stay - IF they have proven
their worth:

1️⃣ Additional shares/equity with new vesting (could be in options, RSUs, or
other vehicles).
2️⃣ Milestone payments.
3️⃣ Conditional shares issued to employees (if the founder stays on for X more
years, their team gets Y% more. If not, they don’t).
4️⃣ Promotions.

The acquirer usually decides WHICH founder(s) it wants to keep, so make sure to
know AND show your worth!


#startups #VentureCapital #investors #SaaS

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Originally posted by Greg Brinson on LinkedIn
link: linkedin.com/in/gregbrinson