Start up bought from equity investor

Jun 10, 2020 4 Comments

I'm interviewing for a start up ~400 people that got recently bought by a private equity investor.

Is that a good or a bad thing? What are the implications? Is there such thing as stocks, options, etc in this case? Can the company still IPO?

I have very little knowledge in the matter and would appreciate some clarification.

Thanks!

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TOP 4 Comments
  • Workday
    smsR63

    Go to company page Workday

    smsR63
    Dont go. Private Equity firms will skin the company to the bone and then sell it as a profitable company. The fact that they were funded by a private equity firm itself is a red flag
    Jun 10, 2020 1
    • Google
      eXqN07

      Go to company page Google

      eXqN07
      Don’t listen to smsR63. A lot of successful tech companies have been owned/heavily influenced by private equity firms - spotify, chewy, zoominfo, Broadcom, Skype, etc. You should be asking these questions.

      What’s the offer composition? If options, ask very precise questions about strike price and company valuation. If rsu’s ask about how they can monetized.

      Which pe firm? Some firms are growth oriented. Others are turnaround experts. Other are specialists in navigating financially distressed situations like potential bankruptcy.

      What’s the pe firm’s ownership percentage, who has voting control of the company, what are their goals for their investment? An ipo/selling out to someone else mean different things for you.
      Jun 10, 2020
  • Why move from Expedia?
    Jun 10, 2020 1