Our First Buyout

Here's hoping for many more

Finally, one of our Portfolio companies is being bought out. It was a long wait and the terms of the deal are underwhelming. But hopefully it’s the start of a trend featuring more deals, higher prices, and maybe even some bidding wars.

And for all its flaws, this acquisition does allow us to consider some of the choices that a buyout presents, including whether to sell immediately or wait for the deal to be consummated; whether to accept the acquiring company’s shares or (if offered) to choose cash; and how to allocate the resulting windfall.

Here we go…