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 investm ...

. 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 wors ...

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 (law), company is brought to an end. The assets and property of the business are redistributed. When a firm has been liquidated, it is sometimes referred to as :wikt:wind up#Noun, w ...

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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