IPO in future

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  • #72529
    boyd s
    Participant

    I’ve spent 10+ years working at a lower management level at a profitable fast-growing mid-sized company, but I’m tired of the job and thinking of moving on. The company execs mentioned recently that an IPO was in the works, but no timeframe was given. Do you think it’s worth me staying for the IPO (maybe another year?) before leaving? Not sure what type of “deal” I would be likely to get.

    I could really use a financial windfall and would hate to pass it up, but I don’t really know what to expect, and I certainly don’t want to wait for something puny. So how likely is it that if there is an IPO, I would receive a significant windfall at that time? Or is it more likely that I would just be offered quarterly stock options with benefits that would accrue over time (that I don’t have)?

    #72530
    Kaye Thomas
    Moderator

    I’m understanding that you hope for some kind of windfall in connection with your current employer’s IPO even though you don’t hold stock options or another form of equity compensation. Personally I’m not aware of situations where that happened. If you have the kind of skills that would induce a company to offer this kind of benefit, you may have a better chance at a windfall by seeking employment at a pre-IPO company that will include them in your compensation package.

    #72538
    boyd s
    Participant

    OK, thanks for your input. When I started, our company did give stock options to employees, and 8 years ago a large investment company bought into the company and our options were executed (or whatever the term for that is–the company remained private), and I got about $50k out of the deal. But no options were distributed thereafter, at least not to most employees.

    My assumption was that there would be some kind of immediate benefit to employees when the IPO went thru–perhaps they would plan to give out options to employees shortly before the IPO.

    But I guess, according to you, a scenario like that seems unlikely. So it doesn’t sound like there’s much reason for me to stick around.

    #72558
    Kaye Thomas
    Moderator

    That’s right. I can’t exclude the possibility of some benefit, but companies generally don’t hand out stock options or similar compensation while an IPO is in the works. Doing so is contrary to the goal of making the company as attractive as possible to public investors.

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