Selling or Buying a Small Business/future of start-up company

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Question
Hello, William Bruno

I recently got fired from a start-up company specializing in software development, after working for them for a year.

From my perspective everything seemed fine, until the following happened:

1. The CEO hired a president who seemed to be restructuring the company. Shortly after the new president started his job at the company there was not much left to do ( I was told that our product was being audited so there was a freeze in all development work ). I'd like to know ( or at least get an opinion on ) why a CEO would hire a president, who would then fire several employees.

2. Before I got laid off I was given many shares from the company.   Then the president told me that he was expecting the company to be bought by a bigger one and then I could sell the shares back to the company so I can receive a bonus. Why would a company offer more shares to a just laid-off-employee and then call them back to buy the shares back?

In regards to point 2 my suspicion is that they offered me the shares hoping that I do not get too disappointed, when in reality these shares will never increase in value ( like a false hope so I don't get too upset), but I would like to have a better understanding of these business decisions ( point 1 and 2 )

Thanks

Answer
Hello, Jake, and thank you for contacting AllExperts.

Unfortunately, these questions would have to be answered by those who made these decisions. They are not in my area of expertise, and I am not certain they would be considered legal matters. If you do feel you have been wronged, there are agencies you can file a complaint with. You did not state your location but all States have labor agencies, and you could also contact an attorney.

Best to you.

Sincerely,

William Bruno
Senior Broker

Selling or Buying a Small Business

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william bruno

Expertise

Virtually anything regarding buying or selling a business or company

Experience

28 years as a licensed broker/intermediary

Organizations
Association of Professional Merger & Acquisition Advisors

Education/Credentials
BA University of Pittsburgh

Past/Present Clients
I have been involved in 304 successful sale transactions in my career

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