My company is being acquired. How can I maximize my upside as an IC?

Question

The startup I work at is getting acquired. Unfortunately management won't (can't?) share anything but vague details. My main concern given the timing is that the valuation will be low and what's left of my equity will be eaten up by investor liquidation preference. Not sure there's much that can be done at this point, but I'm interested to get people's advice, both for what I can do now and for what I could have done earlier.Will companies tell you what stock is actually worth at different valuations when you join? This seems like far more valuable information than the valuation as of the last round.Can you negotiate with the acquirer for a retention plan? Unfortunately, as an individual the power balance is very much not in my favor. Has anything like a pop-up union ever been used to get a seat at the table on behalf of the employees?

codingdave · Accepted Answer

Your stock plan should have the data of the valuation when you signed on, and the most recent valuation. If you use something like Carta, that should all be available to you in the app. Even if you don't use an app, whomever own the stock plan should be able to give you that information.
Your compensation and retention is between you and your boss, whoever that is. You are unlikely to get good results by skipping the management chain and asking the acquirer for special treatment. But you should be able to have professional discussions with your boss about your value, and negotiate from there.
There is little chance that you can get a seat at the table for the actual acquisition. That simply isn't how acquisitions work, not unless you already hold a role where the leadership includes you in strategic discussions.
In short, talk to your boss about all your concerns.

sudoaza · Answer

Does your contract say anything specific about your stocks? Could try reaching a lawyer or union to see what are your rights.

gramakri · Answer

Stupid question but what does IC mean?