• August 2019
    M T W T F S S
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What happens to unvested Restricted Stock Units (RSUs) when a company is acquired?

There are many, many outcomes for unvested stock when a company is bought. As other answers have indicated, all of these points are up for negotiation at the time of sale. Ideally, you have already created an internal agreement that outlines what happens with stock once the company sell.s However, even those terms can be negotiated to ensure that the sale takes places.

The typical outcomes include:

  • Full vesting upon sale
  • Partial vesting upon sale with a provision for additional vesting upon termination once the sale is complete
  • Partial vesting upon sale with no provision for additional vesting upon termination once the sale is complete
  • No vesting upon sale with no provision for any acceleration post-sale

Of course, some of these options are certainly more attractive to the buyer than the seller, thus the reason for negotiations to ensue to make sure that everybody gets something that they want in the end.

LawTrades can connect you to an experienced business attorney that can help you manage such negotiations throughout your company’s acquisition process. Our attorneys are educated at top universities, have a proven track record of providing quality services to business owners just like you, and will assist you from start to finish. Visit our website to set up a consultation.