Alphabet (GOOG, GOOGL) is nearing a deal to acquire cybersecurity startup Wiz for about $23 billion, according to a report from the Wall Street Journal. For employees of a enterprise about to go public, questions may arise around how it affects their wallets and/or future stakes in the enterprise.
Citi Wealth At Work head of investments Mike Remak joins Wealth! to give insight into what employees and investors need to know about the IPO industry.
In terms of what employees need to keep in mind when they’re enterprise goes public, Remak states: “It really comes down to the deal terms and each deal is different. And obviously some of these acquisitions are in cash and others are in stock. But I think the main thing, again, is understanding not only when you can sell your shares, but also thinking about considerations such as taxes, right? Because when one does eventually liquidate that enterprise stock, you are going to have to pay capital gains. There are some ways to mitigate portions of that.”
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