A liquidity event is an umbrella term that describes the conversion of an investment into cash or its equivalent. A liquidity event is a typical exit strategy of a startup company, since the liquidity event typically converts the ownership equity held by a company’s founders and investors into cash. It often takes the form of an acquisition or merger, or an IPO.
Managers of startup companies contemplating the details of a liquidity event may find that it can be difficult to see “the forest through the trees.”
This is especially true when it comes to understanding clearly what the impending transaction may mean for all stakeholders, such as minority investors, debt holders and employees.
RPX Group can help you see the forest and the trees in a new light to help you negotiate and manage the liquidity event for the best results for all stakeholders.
We can help you, for example, by:
- Reexamining and analyzing the value drivers in the company’s development that can make the company more attractive.
- Analyzing the deal structure and choosing the right transaction.
- Understanding the strategy, goals and objectives of the other side and using this to your advantage.
- Helping prepare for due diligence.
- Pointing out tax considerations.
RPX Group takes a hands on approach to assisting companies with the entire liquidity event process, ensuring that the proper foundation is in place for a successful sale. Assistance in identifying prospective buyers may also be a part of the process.