Honorary Mentions - ... • 1y
As a founder, your startup is your baby. But what about when that Golden Exit opportunity appears? Drag-Along Rights in your Shareholder Agreement(SHA) are crucial for ensuring a smooth acquisition process. What are Drag-Along Rights? They empower the majority shareholder to facilitate an acquisition by forcing minority shareholders to sell their shares under the same terms and conditions. Why They Matter for Founders: • Lucrative Exits: Simplify negotiations with potential buyers, making your startup more appealing and potentially leading to better offers. • Control: Prevent minority shareholders from hindering a sale you believe is best for the company's future. • Fairness: Ensure all shareholders receive the same price and terms per share. Remember: Use drag-along rights responsibly. Maintain open communication with minority shareholders for a smooth exit.
Honorary Mentions - ... • 1y
We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab
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