39. What Happens To Your Equity When Your Company Goes Private

  • Duration: 27:28

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Unless you’ve been living under a rock, by now you have certainly heard about Elon Musk’s plans to buy Twitter and take it from a public company to a private one.  Oftentimes, there are many things that will change when a company goes private. And that is especially true with it comes to existing shareholders.

In this episode, Malcolm Ethridge uses Twitter as a case study to talk about what happens to you as both an employee and an investor when the company you have an interest in suddenly goes private. Malcolm also shares his advice on what employees of publicly traded companies should consider as soon as their company announces plans to go private.

Malcolm discusses: 

  • The process of taking a public company private and what makes Elon’s Twitter takeover unique
  • The differences between public and privately owned companies
  • What happens to existing shareholders when the company goes private
  • The tax impact to shareholders when a company goes private
  • And more

Connect With Malcolm Ethridge:

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Malcolm Ethridge

Malcolm Ethridge is a CERTIFIED FINANCIAL PLANNER™, speaker, blogger, and self-proclaimed personal finance nerd. His areas of expertise include retirement planning, investments, tax planning, insurance, equity compensation, and other executive benefits. He leverages that expertise to help senior managers and executives in tech make sense of some of the most complex financial situations that working professionals tend to face.

Disclosures:

The information provided is for educational and informational purposes only, does not constitute investment advice, and should not be relied upon as such. It should not be considered a solicitation to buy or an offer to sell a security. The views expressed in this commentary are subject to change based on market and other conditions. This writing may contain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. Be sure to consult with your tax and legal advisors before taking any action that could have tax consequences. Investments in securities and insurance products are: NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE

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