Liquidity opportunities require significant due diligence and create considerations applicable to a company’s valuation, accounting, tax, regulatory requirements, legal and human resources. Are you looking to liquidate private company shares? Take a look at the most important elements to consider on your path to equity.
Ryan Logue, COO of Nasdaq Private Market, talks about how and why private companies offer structured liquidity programs to facilitate shareholder liquidity.
Every day, we are asked by founders “How can I gain liquidity from my shares?” Generally, these individuals are looking for a loan against their private holdings, and we help them to determine which liquidity options would work best for them. This article explores some of the many ways that a founder can get the liquidity they need and continue to build their business for the long term.
The devastating events locally and globally this year have created heightened desire with many of our Private Bank clients to help. One way our clients do so is by donating equity with embedded capital gains to charity by the end of the tax year. With the current long-running bull market, many investors hold stock that has significantly appreciated in value. Additionally, the anticipation of tax changes and budget cuts make this a particularly good year for charitable donations. Here are three ways many of our clients maximize their charitable giving.
Raising capital to support their endeavors is a central concern for every entrepreneur. Even as a project succeeds and grows, the need for more capital continues. This challenge to raise capital takes on an even more nuanced progression in entrepreneurs' personal lives. The individual may have invested significant savings and sacrificed salary for sweat equity to get things going, and now, despite the progress and value creation, the entrepreneur faces an even greater need to access liquidity. But access to liquidity can be a challenge.
In our September article “Exploring Founder Liquidity Options”, we described some ways that founders are gaining liquidity from their private company shares. This article examines the role secondary markets play in gaining liquidity, for both founders and other constituents. There are many options when trying to achieve liquidity for private shares; however, it is important to understand the pros and cons and which strategies best fit a particular situation. Consider these questions to help you achieve your personal financial goals.
Ryan Logue, COO of Nasdaq Private Market, explains why more private companies are choosing to offer recurring liquidity programs for their shareholders.
Ryan Logue, COO of Nasdaq Private Market, gives an overview of the history of the private company secondary market, including a discussion of how it has evolved and current trends.