Unvested stock and acquired startup

Question

Hello! I would like to know what generally happens to unvested stock in the event of an acquisition. What would be a good way to handle this issue?

Answers: 1 public & 0 private

Joseph zito
Patent Attorney

The answer to your question depends completely upon the terms of the acquisition and the terms of the unvested stock issuance. For example, unvested stock may disappear, convert to options of the acquiring company's stock or be subject to a cash purchase at par value. Without looking at the shareholder agreement and the terms of the acquisition there is no way to answer this question.

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