tender offer

Definition

When a company or investor offers to buy shares from existing shareholders at a set price, providing liquidity without a full exit. A release valve for the equity pressure cooker.

Example Usage

Facebook arranged a tender offer for early employees before their IPO, letting them sell up to 20% of their vested shares.

Origin

Public markets terminology adapted to private company liquidity

Fun Fact

Tender offers became popular as tech IPOs delayed longer, with some employees waiting 10+ years for liquidity.

Source: Corporate finance and liquidity terminology

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