Potentially controversial opinion: Tech companies should use big checks instead of ACH transfers
Over the years, I’ve wired hundreds of millions of dollars to founders and early employees in secondary transactions.
(Author’s note: I also once accidently wired 8 figures to the wrong person, but we won’t talk about that today because it triggers my PTSD (Post Treasurer Stress Disorder) and I’m writing this from the fifth floor)
Releasing those wires is a surreal feeling. You try to remain all professional and “business as usual”, but you know you’re changing that person’s life (and maybe their descendants’ lives) forever.
Today we’ll discuss what secondary transactions (more formerly called “tender offers”) are so you’re prepared to take advantage of one when the time is right.
More specifically we’ll cover:
What are secondary transactions?
When do secondary transactions occur?
What’s the strategy behind secondary transactions?
What’s being bought / sold?
What are the typical rules and guidelines for participation?
What are some of the potential downsides?
What are some well publicized examples?
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