• Introduction
    ▼
    • Why Companies Are Embracing Employee Liquidity
    • How to Run a Successful Liquidity Program
  • Set Eligibility and Restrictions
  • Identify an Optimal Buyer and Structure
  • Set a Price
  • Investigate Impact on the 409A Valuation
    ▼
    • 409A Valuation
    • Hypothetical Scenarios
  • Prepare Company Disclosures and Information for Due Diligence
  • Provide Information to Employees
  • Determine the Legal Implications
    ▼
    • Stock Transfer Restrictions and Rights
    • Symmetry of Information Sharing
    • Exposure to Legal Liabilities
  • Determine the Tax Implications
    ▼
    • Taxation Issues Around Each Type of Stock Issuance
    • QSBS-See If Anyone Qualifies for Special Tax Treatment
    • How to Make an Employee Tender Offer Less Taxing
  • Get Your Message Right – Inside the Company
  • Conclusion
Community as Capital: Why We Invest in People-Building Read Our Story
Founders Circle Capital
  • We
  • Invest in
  • People
  • Your Liquidity
  • Your Leadership
  • Your Library
  • Our Story
  • Menu
You are here: Home / Liquidity Guide by Founders Circle Capital

Over the last eight years, Founders Circle has worked with fast growing companies on all facets of their financing needs, be it primary or secondary capital. Through this journey, we’ve walked these companies and their leaders through numerous employee liquidity programs. Our programs are meticulously designed to align the needs of employees with those of executives, the board of directors, early financial backers—and the growing company.

Along with notable C-executives, our partners at Morgan Stanley at Work, Cooley, Fenwick & West, Gunderson Dettmer, Goodwin, Andersen Tax, and by leveraging data from Nasdaq Private Market, we have compiled lessons from that experience into nine critical steps to facilitate a successful liquidity program.

  • Introduction
    • Why Companies Are Embracing Employee Liquidity
    • How to Run a Successful Liquidity Program
  • 1
    Set Eligibility and Restrictions
  • 2
    Identify an Optimal Buyer and Structure
  • 3
    Set a Price
  • 4
    Investigate Impact on the 409A Valuation
    • 409A Valuation
    • Hypothetical Scenarios
  • 5
    Prepare Company Disclosures and Information for Due Diligence
  • 6
    Provide Information to Employees
  • 7
    Determine the Legal Implications
    • Stock Transfer Restrictions
    • Symmetry of Information
    • Exposure to Legal Liabilities
  • 8
    Determine the Tax Implications
    • Taxation Issues Around Each Type of Stock Issuance
    • QSBS — See If Anyone Qualifies for Special Tax Treatment
    • How to Make an Employee Tender Offer Less Taxing
  • 9
    Get Your Message Right—Inside the Company
  • Conclusion
Download Now

Up Next:

INTRODUCTION

Why Companies Are Embracing Employee Liquidity

TELL US WHAT YOU THINK

What topics would you like to learn more about? Or what topics would you like to contribute to?

Twitter LinkedIn About Us

Liquidity Guide © Founders Circle Capital 2021

  • We
  • Invest in
  • People
  • Your Liquidity
  • Your Leadership
  • Your Library
  • Twitter
  • Linkedin
  • Contact Us

Categories

  • Featured on Home
  • Equity & Compensation
  • Trending
  • Talent
  • Hiring, Firing & Retention
  • Culture
  • Equity & Compensation Strategies
  • Secondary Liquidity
  • Tax Rules & Implications
  • Systems & Processes
  • Finance & Operational Hacks
  • Software Stack for Growth Companies
  • Leadership & Vision
  • Navigating Growing Pains
  • CFO Leadership
  • CEO Leadership
  • IPO Readiness
  • The Road to IPO
  • IPO Mechanics
  • Uncategorized
©2022 Founders Circle Capital | Terms of Use
Scroll to top