For Unlisted Companies
We help unlisted Companies in the following way:
- The company can plan its public offering without liquidity pressures from financial investors.
- Arms length price discovery reduces cost and increases reliability.
- Improves visibility of the company thereby attracting stronger investors.
- Higher liquidity. Hence, no buy-back pressures on the company
For ESOP / Share Holders
An employee holding ESOPs or an investor with a diversified portfolio may want to sell their unlisted / Pre IPO shares to generate cash or to simply book profits. These Sellers also need a safety mechanism that provides them the best price for their shares, matching of trade and enables even retail trades. Companies spend large amounts of money to attract and retain top talent and to align employee and company objectives. Employee Stock Options (ESOPs) is a very powerful tool to do so. However, without timely and adequate liquidity, ESOPs may lose its attractiveness in the minds of the employees and hence defeat the purpose of ESOPs
A clear exit strategy is one of the key focus areas of any Private Equity or Venture investment. Unfortunately, due to uncontrollable factors like the turn of the business cycle, industry disruption, delayed growth, subdued valuations, regulatory compulsions etc; the early investor may not be able to adhere to its original exit strategy and timelines.
If the situation is not conducive for an IPO and the tenure of the fund is approaching expiry; the investor may want to look for alternative opportunities to exit at fair valuations. It is very likely that this situation may not support promoter buybacks as well. It is also possible that the investor may want to exit early if the investment objective is met or better alternatives are available. In both the cases, a strategic secondary market sale may be the best available option.