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Rajan Paswan

Honorary Mentions - ...ย โ€ขย 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: โ€ข Lucrative Exits: Simplify negotiations with potential buyers, making your startup more appealing and potentially leading to better offers. โ€ข Control: Prevent minority shareholders from hindering a sale you believe is best for the company's future. โ€ข 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.

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