What is double-trigger acceleration?
Double-trigger vesting acceleration is an equity provision under which unvested founder shares or employee options accelerate (vest immediately) only upon the occurrence of two distinct conditions — typically (i) a change-of-control transaction (M&A, IPO) AND (ii) involuntary termination without cause (or constructive termination/good-reason resignation) within a defined post-closing window (commonly 12-18 months). Double-trigger is the market-standard acceleration mechanism for venture-backed companies because it balances founder/employee protection with acquirer flexibility.
Mechanics
- Trigger 1 — Change of control: M&A, sale of all/substantially all assets, dissolution; sometimes IPO (less common).
- Trigger 2 — Termination event: involuntary without cause OR good-reason resignation (material role change, compensation reduction, relocation).
- Acceleration scope: typically 100% of unvested shares accelerate; sometimes partial (e.g., 50% or 24-month additional).
- Window: termination must occur within 12-18 months post-closing for acceleration to trigger.
Double-trigger vs. single-trigger
- Single-trigger: change of control alone vests all unvested — acquirer-unfriendly, harder to negotiate in seller’s position.
- Double-trigger: requires both CoC + termination — preserves retention incentives for acquirer while protecting founders against arbitrary post-deal termination.
- No acceleration: rare for founders; common for early employees in seed-stage companies.
Negotiation context
- Founders: typically secure double-trigger for 100% of unvested; senior employees may negotiate similar.
- Junior employees: usually no acceleration; acquirer absorbs vesting schedule.
- Tax considerations: US 280G excise tax on excess parachute payments may limit acceleration; non-US founders less affected.
Türk startup ve M&A bağlamı
Türk girişim sözleşmelerinde double-trigger Delaware/Cayman holding yapısında yaygın benimsenir; Türk Anonim Şirket düzeyinde vesting konsepti TBK ve TTK’da doğrudan tanımlı değildir, sözleşmesel olarak hisseder sözleşmesi veya iş sözleşmesi ile düzenlenir. Türk M&A işlemlerinde acquirer’in lokal Türk şirketi alıyorsa double-trigger uygulanması işlem yapısının (asset deal vs. share deal) ve Türk iş hukuku (İş Kanunu 17, 18) ile uyumun karmaşık etkileşimi vardır.
Do: negotiate double-trigger early in founder paperwork (incorporation docs); define “good reason” clearly; document acceleration in equity grants.
Don’t: accept ambiguous “in management’s discretion” acceleration language — disputes arise post-deal when interests diverge.