Founder on acquisitions: earn-outs 'almost never fully pay out' once you lose control
dunkhippo33 · x · 2026-10-30
In an ongoing thread on how startups get acquired, dunkhippo33 adds practical deal-structure advice: cash is simple, but stock can be the better deal if you believe in the acquirer's upside. He also warns about earn-outs — deferred payments tied to post-acquisition targets like revenue — saying that in his experience they almost never fully pay out, because you no longer control the business after the deal closes.
More from Venture
- Amazon shares plunge 13.48% to $221.31 in a single-day rout — Polymarket · 2026-10-30
- Runneth launches HQ to share a boss's trained AI with new hires, no chat export needed — jacob_posel · 2026-10-30
- Crusoe closes round at $31B valuation, from Bitcoin mining to AI data centers — nathanbenaich · 2026-10-30
- Robotics startup Machenta exits stealth with $40M seed, UK's largest-ever robotics seed round — Ed__Johns · 2026-10-30
- OpenAI-backed Thrive Holdings buys ADT for $15.3B to bring AI to home security — TechCrunch AI · 2026-10-30
- Google has an IBM problem: AI answers are cannibalizing its core search ad business — DavidLinthicum · 2026-10-30