A Liquidation Event is a contract-defined event that triggers distribution of proceeds to equity holders, commonly including a sale of the company, merger, liquidation, dissolution, or deemed liquidation in the charter. In VC documentation, the Liquidation Event definition drives when liquidation preferences apply, and parties often negotiate whether certain restructurings or asset sales constitute a Liquidation Event.
Ryan RobertsStartup 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.
