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ESOPs: startups vs. MNCs, case studies
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Module 5
Cashing Out: Liquidity and Exit Scenarios
1
Understanding Liquidity Events for ESOP Holders
Define what a 'liquidity event' is and why it's crucial for ESOP holders.
2
Understanding IPOs and M&As
Describe the most common liquidity events: Initial Public Offering (IPO) and acquisition (M&A).
3
Alternative Liquidity Options
Explain alternative liquidity options like ESOP buyback programs and secondary sales.
4
The Pitfall of Worthless ESOPs
Identify the primary risk of ESOPs: they can become worthless if the company fails to secure a liquidity event.
5
ESOP Value Evolution: From Funding to Exit
Analyze a case study showing how an employee's ESOP value changes through multiple funding rounds and a final exit event.
Previous module
Company Growth and ESOP Valuation
Next module
ESOPs: Startups vs. Public Companies (MNCs)