Goldman Sachs and the $580 Million Black Hole
Reminds me of 4 lessons I read about start-up exits:<p><pre><code>  Don't swap your stock for another.

  Don't deal with anyone with a question mark over their head.

  Take the lower valuation with the company you trust more.

  Don't celebrate until the cash is in the bank.
</code></pre>
All 4 rules were broken here. Seller beware.<p>Reasons?<p>When someone swaps a stock - they implicitly value it less than what they get. Hence if you swap your stock with someone else, the buyer implicitly states that your stock is  worth more than theirs. Losing deal.<p>Would you marry someone you didn't trust? No. Then why would you swap your baby for theirs?<p>Certain return with someone you trust is 10x better than a "certain" return from a flaky agent.<p>Nullify any agreements that don't put cash in the bank and give you more risk than reward. Take the breaker clause. Or lose everything.