I always wonder, though, that (usually) a good percentage of the value in these deals is the institutional knowledge of the company. The purchasing company better know the amount of ill will engendered when connected leaders like the CEO make out like bandits while everyone else gets screwed can have a serious negative effect on the value of the company.
Despite equity being worth nothing, that doesn't mean that employees are all fucked. If the company is actually buying the company for the capability they provide, rather than just customers+brand, there are usually generous offers at the new company for those that the acquiring company wants to ensure stay.
