Replacement Options

1 minutes read

Last updated: November 6, 2023

Now that we have calculated the fair values of TargetCo’s vested and unvested employee stock options (“ESOs”), we need only to multiply by the number of options outstanding to get the aggregate values of the vested and unvested ESOs. BuyerCo will replace TargetCo’s ESOs with BuyerCo ESOs of equal value, and these values will be reflected in the purchase price as we will soon see.

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Replacement Options

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