Drag Along Rights

Drag Along Rights are provisions that allow a specified majority of stockholders (often including preferred) to require minority holders to support and participate in a sale on the same terms. Drag Along Rights reduce holdout risk and help deliver clean exits, and Drag Along Rights are a key execution tool in venture-backed M&A.

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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.