A PRACTICAL GUIDE: DELIVERING A SECONDARY SALE TO EMPLOYEES

  • What a secondary sale is
  • Why we held a secondary sale
  • The TransferWise reward philosophy
  • The challenge ahead
  • 6 practical things you can do to deliver a secondary sale
  • Key learnings

WHAT A SECONDARY SALE IS

WHY WE HELD A SECONDARY SALE

  • Many of our current and ex-employees took smaller salaries and larger stock option grants to join us on our mission in the early days. We wanted to reward them for helping to make us the company we are today, by converting their vested options into money.
  • The median age of venture capital backed technology companies when they IPO has risen from 7.5 years in 2006 to 11 years in 2018. It means many employees are now waiting much longer to see financial gains from the stock options they get for helping to build successful and sustainable companies. Long-term, an IPO is certainly possible for us, but it’s not something we have immediate plans for, as it wouldn’t help us achieve our mission today. This way we can remain private for longer, whilst still rewarding the efforts of our employees

THE TRANSFERWISE REWARD PHILOSOPHY

THE CHALLENGE AHEAD

6 PRACTICAL THINGS YOU CAN DO TO DELIVER A SECONDARY SALE

  1. Lock down your philosophy and non negotiable stuff early on

KEY LEARNINGS

  • Before you do anything, get clear on the scope and your non negotiable stuff
  • Build a fluid plan with extra time buffers. Things will most definitely change
  • Quickly assess your timelines and what external versus internal resources are needed. If you can work with a partner, get realistic timelines and add on a buffer
  • Develop the seller experience with a product mindset and customer experience at the forefront
  • Don’t underestimate getting the right tax advice really early on and how you’ll handle request from advice
  • Be as transparent on comms, but avoid committing to dates until you’ll 100% certain!

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