SUMMARY
In 30 seconds
Quattrone describes common deal structures while noting that compensation can take several forms.
- 1ClosingMany cash deals transfer funds at closing.
- 2IncentivesRetention and options may also be involved.
- 3RestrictionsStock may have a lockup.
Takeaways
- Cash is often transferred at closing.
- Retention incentives and options may be included.
- Stock can be subject to restrictions.
FULL TEXT
Read the edited text by chapter
01
Cash closing
Investment banker Frank Quattrone answers a question about when founders receive money in an acquisition.
Investment banker Frank Quattrone answers a question about when founders receive money in an acquisition.
He says many all-cash transactions close once, with funds transferred at closing. Actual arrangements vary by agreement.
02
Other consideration
Quattrone notes that founders may also receive retention incentives, new options or stock, some of which can be subject to restrictions or lockups.
Quattrone notes that founders may also receive retention incentives, new options or stock, some of which can be subject to restrictions or lockups.
More from this channel
1:00:17EN
20VC with Harry Stebbings· Oct 29, 2026Podcast · 3 speakersHarry Stebbings, Jason Lemkin and Rory O’Driscoll on AI financing and venture betsGuest Jason Lemkin, Rory O’Driscoll · Host Harry StebbingsThe investors debate AI lab economics, spending on infrastructure, open-model risks and how to evaluate fast-moving private investments.
23:48EN20VC with Harry Stebbings· Oct 26, 2026Podcast · 2 speakersSatya Nadella on Zero Trust for AI and Why Every Company Should Own Its IntelligenceGuest Satya Nadella · Host Harry StebbingsThe Microsoft CEO argues that capable agents need security boundaries even as alignment research remains unsettled, and explains why firms should retain the value created by their own AI use.
1:13:26EN20VC with Harry Stebbings· Oct 24, 2026Podcast · 2 speakersNaveen Rao on Energy, AI Hardware, Verification and the Future of RoboticsGuest Naveen Rao · Host Harry StebbingsThe Unconventional AI founder argues that energy efficiency will shape AI hardware, while the growing volume of model output makes verification more valuable.
59:41EN20VC with Harry Stebbings· Oct 22, 2026Podcast · 3 speakers20VC: Venture Fund Size, AI Valuations and the Changing Software MarketGuest Jason Lemkin, Rory O’Driscoll · Host Harry StebbingsHarry Stebbings, Jason Lemkin and Rory O'Driscoll debate venture concentration, infrastructure risk, code review and the assumptions behind fast-growing AI companies.
1:19:50EN20VC with Harry Stebbings· Oct 19, 2026Podcast · 2 speakersSameer Dholakia on AI Investing, Bessemer's Growth Strategy and Company CultureGuest Sameer Dholakia · Host Harry StebbingsThe Bessemer partner explains his approach to pricing fast-growing AI companies, backing founders and building teams, while discussing the risks behind his optimistic forecasts.
1:03:05EN20VC with Harry Stebbings· Oct 17, 2026Podcast · 2 speakersHarrison Chase on Building Reliable Agents, Model Routing and MemoryGuest Harrison Chase · Host Harry StebbingsThe LangChain co-founder explains why agents remain difficult to control, where domain expertise matters, and how his team manages coding-agent costs.