Stock Acceleration

Stock acceleration provides critical protection for equity holders during major corporate events, ensuring that unvested stock options or restricted stock can be exercised when traditional vesting schedules might otherwise prevent value realization.

There are two primary types of acceleration: single-trigger and double-trigger. Single-trigger acceleration activates immediately upon a change of control, while double-trigger acceleration requires both a change of control and an involuntary termination.

In merger and acquisition scenarios, acceleration provisions can dramatically impact the financial outcomes for founders, executives, and key employees by preserving their equity value during transitional periods.