Q: What happens to my shares (or convertible note) in a startup if it gets bought out?
A: If you have shares in the startup, they will convert into…
Cash if the buyout is a cash deal
Common or preferred shares of the buyout company if the startup is bought out via shares
A combination of cash and shares if the buyout is done through cash and shares.
If the buying company is listed on a public exchange, you can immediately sell those shares and cash out. But if it’s a startup with privately held (and illiquid) shares, you’ll have to hold on to them …read more
