Frank Quattrone on Founder Payments in Acquisitions

A banker explains cash closings, incentives and stock restrictions.

FQFrank QuattroneInvité · Qatalyst
Chaîne
20VC with Harry Stebbings
Publié
1 mars 2024
Vidéo
0:27
Lecture
1 min
Original
anglais
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RÉSUMÉ

En 30 secondes

Quattrone describes common deal structures while noting that compensation can take several forms.

  1. 1ClosingMany cash deals transfer funds at closing.
  2. 2IncentivesRetention and options may also be involved.
  3. 3RestrictionsStock may have a lockup.

À retenir

  1. Cash is often transferred at closing.
  2. Retention incentives and options may be included.
  3. Stock can be subject to restrictions.
TEXTE INTÉGRAL

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Transcription seule
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.

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