Now more than ever, companies must stay attuned to the needs of their employees. By providing liquidity options that align with your long-term strategy, you can support your employees while retaining top talent.
The journey from start to sale:
Yes, selling your private company stock is possible. However, it depends on your company’s specific policy regarding the sale of private shares and your ability to find a qualified buyer who meets the “accredited investor” criteria set by FINRA and the SEC.
Some companies permit the sale of vested shares, while others impose restrictions or designate specific times for selling. Although companies recognize their employees’ need for liquidity, such sales can impact the company’s valuation and capitalization table. As a result, the sale of private company shares generally requires company approval.
Yes, you can sell your pre-IPO shares independently, but you’ll need to find an accredited investor and get approval from your company. The process involves negotiating terms, managing paperwork, and coordinating with a transfer agent. While it can be complex and time-consuming, it’s feasible to handle the sale on your own.
Additionally, some companies provide share buyback programs or tender offers, which offer a structured method for selling shares. However, these opportunities are not guaranteed and come with specific eligibility requirements and fixed prices. It’s important to understand that these company-led sales may not always align with your personal financial objectives.
To sell your private company shares on a secondary marketplace, you will need to register and provide details about your shares, including your desired sale price. The platform will work to match you with a buyer, but the final sale price will depend on supply and demand, and a sale is not guaranteed.
Once a buyer is identified, assistance will be provided with the necessary documentation and company approval for the transaction. This process typically takes 30-60 days and involves a service fee of approximately 5% of the sale price. Additionally, broker support is available throughout the process to help ensure the sale meets your financial objectives.
Before selling pre-IPO shares, you need to obtain approval from your company and familiarize yourself with its stock sale policies. Review any holding period requirements or restrictions on secondary sales.
It’s crucial to be aware of potential tax liabilities and to plan the timing of your sale according to your personal financial goals. Consider whether delaying the sale might affect the share value and ensure that your decision aligns with your risk tolerance. While secondary marketplaces can help you find buyers, the prices and sales are not guaranteed and will depend on company constraints and approval processes.
Flexible Liquidity Options for Employees and Organizational Growth
Whether you’re looking to sell shares, diversify your portfolio, or just want to learn more about the private market, we provides a clear path to help you achieve your investment goals.
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