Liquidity Event Planning

Liquidity events are exciting! But also require careful planning.

A Liquidity Event Is Happening; Now What?

You've worked really hard to help build/grow your company, and now you have the ability (or possibly, requirement) to cash out some/all of your equity. It's exciting, but also comes with a number of key decisions regarding (1) your personal financial planning/goals, (2) risk tolerance, (3) your opinion of the company/its business prospects, (4) deal-specific circumstances, and (5) tax management/optimization.

Making optimal decisions during a liquidity event can go a long way in setting your life up better for financial success, minimizing any future regret, and optimizing the tax impact!

Is the Liquidity Event Known/Will Occur, or Anticipated?

Decisioning for liquidity events can be probabilistic (e.g. odds of an anticipated event occurring), or functional (event is announced/very likely to occur). The key items to consider as you make a decision definitely need to take into account whether the liquidity event is anticipated or known/announced.

Your Strategy Depends on the Liquidity Event Type

There are multiple types of liquidity events, each with their own specific nuances, rules, potential restrictions, and key decisions/considerations. We created an in depth guide for each of the most common liquidity events types:

Liquidity Event Planning Guide: IPO/Going Public

Liquidity Event Planning Guide: Acquisition

Liquidity Event Planning Guide: Tender Offer

Liquidity Event Planning Guide: Secondary Market Sale