In July 2018, Paddy Power Betfair (now known as Flutter) acquired FanDuel for $465M in cash. On the surface, this looks like a great win for the FanDuel founders and employees. However, because the two lead investors held strong liquidation preference rights, the FanDuel founders and most employees received nothing in this massive deal. What is Liquidation Preference? Liquidation preference is one of the most important terms in a term sheet. Liquidation preference determines who gets paid first ...