I'm new to fundamentals of stock/equity.
I have got an offer from an LLC company and the recruiter is saying they will allocate me
Accelerated Incentive Units(AIU) which is intended to be treated as
Profit Shares for a future valuation of the company( say 5B) which I learned from various public blogs, is almost double the current valuation(2.8B).
I read about the
Profit Shares and learned that those are only applicable from the vesting day onwards and only if the value of the company increases and all I could understand from various posts is that its beneficial for employees as it helps to save on tax.
However, I could not learn the cons of it.
Just wondering what would be the case :
- If the value of company does not hit at which I'll be granted the
AIUsand what if that starts decreasing ?
- Would all 4 years of my units be at the same valuation or it would change as per the value at the time of vesting.
Any more advice, easy to understand blogs to learn more about it would be very helpful.
Thanks very much in advance.