SaaStr · 2024-06-12 · 721d

Stock Vesting Acceleration in M&A Acquisitions: What Founders and Employees Should Know

Stock vesting is rarely accelerated in acquisitions, with acquirers typically requiring employees to continue vesting on original schedules to retain talent. Double-trigger provisions, which accelerate vesting upon termination post-acquisition, are generally favorable negotiating terms with minimal downside risk. Understanding vesting dynamics is critical for founders and employees navigating M&A transactions.

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Metrics in this report

Vesting Acceleration Rate

5%

maximum

percentage of acquisitions where stock vesting is accelerated