On June 1 2017, Blue Apron, Inc. filed it’s S-1 as APRN. You can read all of the details here: marketwatch
Blue Apron provides meal-kit delivery across the US and has grown rapidly since it’s inception in 2012. Like most IPO’s, Blue Apron’s employees likely face a blackout period in which they cannot sell shares. Typically, this period lasts around 6+ months and employees get to enjoy what can be a roller-coaster ride of their net worth. With recent history being our guide, tech IPO’s have created massive wealth for employees, but have also seen massive volatility in the stock price.
With that in mind, we have created some planning ideas we will spell out over the next few weeks that help employees at Blue Apron or any other public company where a blackout period is in place, make good decisions that are specific to their personal goals.
Be Honest With Yourself
Many of the Blue Apron employees could have most of their wealth tied to this single stock. If some of the expert predictions are true, this is a fairly high-risk stock with a lot left to prove if investors are going to buy-in long-term. Yes, you are “bullish” on Blue Apron, but how much risk are you REALLY willing to take on? First, don’t let other employees dictate what YOU should do with your stock/options. By creating a plan to sell some shares, you are not giving up on the Company, but rather prioritizing your personal and family goals.
Have you ever completed a risk-tolerance profile? Are you totally fine seeing your entire net worth rise by 200% only to see if fall back to 50% of the original value all while you can’t do anything about it? Simply put, the blackout period will end, but there’s always another one coming and your windows are limited.
In working with people around the country on how to answer these questions, we believe the first step in determining what you should do is a very personal decision. Set aside a couple of hours to spell out your personal and financial goals and you’ll find you can meet them faster than you think; if you are smart about the decisions you make with your equity.
The question shouldn’t be “what should I do with my equity”, but rather “how can I leverage my equity to achieve the goals I care about and do it in the most tax-efficient way possible”. Start defining your goals and reach out to us to ensure you are covering all bases properly.
You can schedule a free 15 minute consultation here: Schedule
If you want an up to the minute view into the worth of your stock options, check out our Equity Platform.