Freeze Out

A Freeze Out is a transaction or governance action in which controlling shareholders or a buyer force minority shareholders to cash out or otherwise lose their stake, commonly via a merger or similar squeeze-out mechanism permitted by law. In M&A, a Freeze Out raises heightened fiduciary and process considerations, and parties often structure the Freeze Out to reduce litigation risk (e.g., independent committee and minority approval conditions).

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.