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Pillsbury

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Equity Isn’t Equal: How Stock Options Work Differently After a Delaware Flip

As discussed in our previous article, “Understanding the Delaware Flip: What UK Founders Should Know,” in a “Delaware flip” a UK (or other non-U.S.) company forms a new U.S. parent company—typically in Delaware (“TopCo”)—and the UK company’s shareholders exchange their shares for equivalent TopCo shares. This raises the question—what exactly happens to existing UK options?