Had employee options in a company that has been sold to another foreign company. What happens?
One of my parents had employee options in a company that was based in the US. Recently however, that US company had been sold off to a German company (now based in Germany).
Question is, what happens to those options? I come from a little to no experience on these financial issues. Does the fact that the two companies are now on separate sides of the globe present any legal issues?
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You should ask the company, there's no one rule. From my observations, what usually happens is that the old options are replaced with the new options in the new company, and with a new vesting schedule. But that doesn't have to be like that, the old options may be cancelled, bought out, replaced with the stocks of the new company, etc etc. It depends on the grant contract and the company's purchase agreement.
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