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Taking money off the table

(zachholman.com)
135 points holman | 3 comments | 30 Oct 25 18:50 UTC | HN request time: 0.207s | source
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mason55 ◴[30 Oct 25 19:38 UTC] No.45764374[source]▶
A 10% tender offer isn't really an interesting discussion. You should take definitely take 10% off the table unless you're already pretty wealthy.

The interesting discussion is how much you should take off the table if the offer is uncapped.

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collinmcnulty ◴[30 Oct 25 20:55 UTC] No.45765235[source]▶
Growing up around people who lost everything, job and savings, working at Enron, you should take all the money they’ll let you. You are structurally long your company already, because if they struggle you could lose your job. Diversify your wealth away from that concentrated position as much as possible if you’re offered a fair price.
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1. SCUSKU ◴[30 Oct 25 21:57 UTC] No.45765875[source]▶
Would you apply that similarly to RSUs at a public company as well? i.e. always sell your stock grant and diversify regardless of the company?
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2. ahtihn ◴[30 Oct 25 22:04 UTC] No.45765936[source]▶
If they gave you cash instead, would you use it to buy stock in the company? That should answer the question.
3. collinmcnulty ◴[31 Oct 25 02:24 UTC] No.45767680[source]▶
Yes, same principle. And with RSUs you can be even more confident that you’re selling at market rate than you can with a tender offer for illiquid equity.