In corporate finance, a liquidity event is a transaction that enables the owners of a company to realize the value of their investment, such as a merger, acquisition or

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

. A liquidity event is a typical

exit strategy An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure. An organisation or individual without an exit strategy may be in a quagmire. At worst ...

for private investors, who otherwise have difficulty proving the company's value. A liquidity event is not to be confused with the

liquidation Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistrib ...

of a company, in which the company's business is discontinued.

References

External links

COMPANY VALUATION AND LIQUIDITY EVENT: Don’t show up without them!

Guiding your family through a liquidity event. Cashing out without melting down.

Segway confuses investors with 'liquidity event' vow
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