Liquidity event

In corporate finance, a liquidity event is an umbrella term that describes one of several events, typically a purchase of a corporation or an initial public offering. A liquidity event is a typical exit strategy of a company, since the liquidity event typically converts the ownership equity held by a company's founders and investors into cash.

A liquidity event is not to be confused with the liquidation of a company, in which the company's business is discontinued.

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