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Navigating a Successful Private Secondary Offering Through Murky Waters

October 28, 2015

By TREVOR KATENDE

A well-crafted, company-facilitated secondary offering of private company shares (a private secondary offering) enables pre-IPO companies to satisfy the liquidity needs of early investors and employees without becoming exposed to the burdens and risks associated with going public. While investors and employees have historically sought to cash out their holdings following an IPO, this traditional liquidity event exposes companies to new risks like the volatility of quarter-driven public stock markets, compliance costs, and requirements to publicly disclose financial and other material information. This article originally published in the November 2015 ACC Docket.