After 25+ years of building my business, a legit buyer has offered a nice cash price, two years working for them, plus $200k in equity/stock options. I don't understand what the buyer means by the following:
"200k of options (actual value will vary based on the realized results of our investment, but the 200k will be calculated assuming a 4x return to us and co-investors). The 200k of options will have the same vesting and other terms as for all other employee optionholders."
He mentioned that it is vested at 5 years though some sort of pro-rating in prior years. I honestly cannot see me working for them beyond 2 years. But what troubles me most is the "assuming a 4x return to us..."
What could that mean? They have to grow 400% in order for me to have this?
"200k of options (actual value will vary based on the realized results of our investment, but the 200k will be calculated assuming a 4x return to us and co-investors). The 200k of options will have the same vesting and other terms as for all other employee optionholders."
He mentioned that it is vested at 5 years though some sort of pro-rating in prior years. I honestly cannot see me working for them beyond 2 years. But what troubles me most is the "assuming a 4x return to us..."
What could that mean? They have to grow 400% in order for me to have this?