KEY POINTS
- Practice Fusion sold for $100 million, after reports in 2016 said the company might go public at a $1.5 billion valuation.
- Documents show the company was looking for a buyer and that bids were a fraction of that price.
- Executives pulled in millions as part of a pre-arranged deal, while common shareholders were wiped out.
Karl-Josef Hildenbrand | AFP | Getty Images
When Practice Fusion, a medical records start-up, sold to AllScripts for $100 million this month, it was a massive disappointment for employees and investors. Only two years earlier, their stock in the company was reportedly worth 15 times the purchase price.
Start-ups crash and burn all the time. It's an inherent risk and one that's understood across Silicon Valley.
Trending Now
1
Bessent says to adjust your paycheck withholding — but mistakes could trigger a tax bill 2
Video shows ships turning away from Strait of Hormuz as confusion persists over whether sea lane is open 3
Iran says Strait of Hormuz is closed again as vessels attempting to cross come under fire 4
She’s been married nearly 70 years: The No. 1 thing they still do every day—it keeps them in love 5
Berkshire shares left behind as S&P 500 rallies to record high