As the Indian startup ecosystem enters a new phase of maturity, with a surge in IPO activity and many companies planning to go public within the next 3 to 4 years, the need for a strong, committed team aligned with the company’s long-term goals becomes more critical than ever. This is where a well-timed, pre-IPO-focused ESOP plan can make all the difference.
But when is the right time to launch your ESOP plan if you’re eyeing an IPO? In our experience, introducing an ESOP at least 2 to 3 years ahead of the IPO is ideal. Here’s why:
| Vesting Period |
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| Benefit of pre-IPO Valuation |
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| Liquidity Opportunity for Employees |
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Launching your ESOP at the right time can play a critical role in your IPO success by keeping your team motivated, aligned, and invested in the company’s future. Even if you already have an ESOP in place, you may benefit from refining your grant strategy to meet the specific demands and opportunities of an impending IPO, ensuring key talent remains engaged and rewarded during this critical phase.
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