Navigating Employee Tender Offers: Why Financial Strategy Matters More Than Ever
For employees at high-growth private companies, equity compensation can be one of the most valuable—yet complex—parts of total compensation. As more companies delay going public, tender offers have become a key tool for providing liquidity. Recent examples from Stripe and Plaid show how companies use these offers to retain talent and support employee financial well-being. However, navigating a tender offer is no simple task. Understanding the tax implications, timing, and financial impact requires a cohesive strategy and the right financial team.
What is a Tender Offer and Why Does It Matter?
At its core, a tender offer is an opportunity for employees or early investors to sell a portion of their private shares. These liquidity events are typically structured by the company to allow employees to convert equity into cash—often years before an IPO or acquisition. With IPO timelines frequently pushed back due to volatile market conditions, tender offers have become a crucial lifeline for employees seeking liquidity.
Tender offers are more than just cash opportunities; they can also be powerful retention tools. By giving employees a way to sell vested shares without seeking out secondary markets or private buyers, companies reduce financial pressures and reinforce loyalty. However, these offers also come with critical decisions that employees must weigh carefully:
Tax Consequences: Selling private shares can trigger significant tax liabilities, including ordinary income tax or long-term capital gains tax. Timing and the type of equity sold will play a key role in determining the tax impact.
Opportunity Cost: Employees who sell equity may forgo potential future upside, especially if the company experiences substantial growth post-tender offer.
Valuation Trends: Tender offers are not always conducted at peak valuations. Companies may set offer prices below their highest historical valuations, raising questions about whether to sell or hold.
Without a clear understanding of these dynamics, employees risk making decisions that could derail their long-term financial goals.
How Stripe and Plaid Structured Their Tender Offers
In early 2025, Stripe and Plaid announced new tender offers to allow employees to sell vested equity, underscoring a growing trend among private companies. These events are designed to offer employees liquidity, helping them diversify their wealth while companies work to retain talent and delay IPOs amid uncertain market conditions.
Stripe is reportedly in talks for another shareholder sale that could value the company at “at least” $85 billion, according to multiple reports and a source familiar with the matter. This follows Stripe’s February 2024 tender offer, when the company was valued at $65 billion. The payments infrastructure giant had previously reached a peak $95 billion valuation in 2021, cementing itself as one of the most highly valued private companies in the world.
Plaid also announced a 2025 liquidity event as part of its broader strategy to offer employees diversification options without forcing them to wait for an exit. The latest tender offer comes amid increasing employee vesting from earlier equity grants, allowing longer-tenured employees to access cash flow while still preserving potential upside.
These announcements showcase how leading private companies are adapting their liquidity strategies in a competitive tech labor market. For employees, however, these decisions present nuanced financial and tax implications that warrant careful planning with the right financial team in place.
The Importance of a Cohesive Financial Strategy
For employees, making decisions during a tender offer can feel overwhelming. Common questions include:
Should I sell my shares now, or wait?
How much should I sell, if at all?
What will this decision mean for my long-term financial goals?
A tender offer is not just about liquidity—it’s about optimizing a broader financial strategy. This is where having a financial advisor becomes invaluable. An experienced advisor can work with employees to:
Clarify Long-Term Financial Goals: Every equity decision should be evaluated through the lens of your broader life goals, whether it’s buying a home, funding your children’s education, or planning for early retirement.
Tax Optimization: Timing matters when selling equity. Advisors can help identify strategies to manage tax liabilities, such as leveraging long-term capital gains or utilizing tax-advantaged accounts.
Portfolio Diversification: Holding a concentrated equity position in a single private company carries risk. Selling shares during a tender offer can provide the opportunity to diversify into other investments, reducing the potential impact of a single company’s performance on your overall wealth.
How Mana Supports Clients Through Equity Liquidity Events
At Mana, we specialize in helping clients navigate tender offers and other equity compensation decisions. Our approach focuses on holistic financial planning—ensuring every decision aligns with your overall wealth-building strategy.
We understand the unique challenges that come with holding private company stock, especially in today’s dynamic market environment. By working closely with tax professionals and estate planners, we provide comprehensive support to address all aspects of your financial life. Whether it’s evaluating tax liabilities, exploring diversification options, or modeling future outcomes, we help our clients make informed, confident decisions.
Tender offers are more than just liquidity events—they are financial milestones with long-lasting implications. With the right financial team in place, you can approach these opportunities with clarity and confidence, knowing that your decisions align with your long-term goals.
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Stephanie Bucko and Cristina Livadary are fee-only financial planners based in Los Angeles, California. Stephanie is the Chief Investment Officer and Cristina is the Chief Executive Officer at Mana Financial Life Design (FLD). Mana FLD provides comprehensive financial planning and investment management services to help clients grow and protect their wealth throughout life’s journey. Mana FLD specializes in advising ambitious professionals who seek financial knowledge and want to implement creative budgeting, savings, proactive planning and powerful investment strategies. As fee-only fiduciaries and independent financial advisors, Stephanie and Cristina never receive commission of any kind. Stephanie and Cristina are legally bound by their certifications to provide unbiased and trustworthy financial advice.