How to find/contact the 'secondary private market' to, in future, sell common shares in US-based private company?

P

pmcb55

New Member
Messages
3
I'm an employee of a private US-based startup company. I'm currently finalising my exit from the company, and I intend to exercise my vested share options in the company, before they expire in 90 days. I fully intend to keep these common (NSO) shares as an investment, but I'm interested in discussing how I'd go about liquidating portions of the resulting shares on the secondary private market in the future, and I'd appreciate any guidance on how to contact this 'secondary private market' - i.e., are there private equity brokers in Ireland that might handle such situations (e.g., find potential buyers) on my behalf?
(I already contacted Davy's, but apparently they don't deal with the secondary private market at all - so what firms in Ireland do!?)
 
The hint is in the name "private" market.

The shares would usually only be sold within a market organised by the company which tries to match buyers to sellers.

If you want to sell, you would probably find few buyers and then only at a big discount.

If the company goes public, you would be able to sell the shares through any broker.

Brendan
 
Hi @Brendan Burgess - yeah sure, I get that "The shares would usually only be sold...", but my understanding is that 'secondary private markets' specifically exist to facilitate situations like employees of private companies wishing to liquidate/sell shares they own before their employer goes public or is bought out (particularly in recent years where the typical time-to-IPO has been getting longer and longer).

I understand there are three basic mechanisms to allow employees cash out their private company shares earlier. The first two options are explained very well by Carta (Google search "carta What happens to equity when you leave a company?"):
"You may, however, be able to sell your shares in an active private company for cash before an exit event in either of the following scenarios:
  • 1. If your company runs a secondary liquidity event, such as a tender offer
  • 2. If you can find a buyer on the secondary trading market"
Carta also explains 'secondary private markets' really well too, Google search "carta Secondary markets":
"Private secondary transactions give shareholders of private companies an opportunity to liquidate some or all of their shares. [...] gives employees the chance to cash in their equity compensation before an exit event, such as an initial public offering (IPO) or acquisition."

This is how I believe Hiive dot com ("Hiive is the marketplace for private stock.") and Forge Global operate in the US (although I believe Forge have very recently begun operating in Europe too: Google search "Forge Launches in Europe Amidst Growing Demand for Access to Private Company Liquidity").

Both the above options involve the actual sale and transfer of private company shares today. But this typically requires the up-front agreement and approval from the company itself, which might not be forthcoming. So the 3rd option is different. No shares are actually transferred up-front at all, and the company itself isn't directly involved either.

Instead, option 3. is where the company employee (the share owner) accepts an up-front 'loan' from the buyer today, and in return that seller signs a legal contract saying, "Thank you very much for your loan <BUYER>, and I, <SELLER>, do solemnly swear to pay you back that loan with interest amounting to the share-price gain when, in the future, I'm in a position to sell my shares, e.g., when the company is bought out, or goes IPO.'

So really I'm asking if anyone here has, or knows how to pursue options 2. and 3. in Ireland?
 
You must log in or register to reply here.
Back
Top