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.
I work on Contract D... • 8d
Ever seen someone get a wedding invite — and they bring a plus-one who wasn’t invited but gets all the same perks? That’s exactly what Tag Along Rights do for minority shareholders. If the majority is selling their stake to an investor, you — as a mi
See MoreI work on Contract D... • 9d
Ever been part of a group trip where one person books the tickets — and everyone else has to follow along, even if they didn’t fully agree? That’s pretty much what Drag Along Rights do in the startup world. If a majority shareholder decides to sell
See MoreHonorary 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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