Imagine this:
- an investor wants to buy shares of a target company, conditional to the cap table being readjusted, with shareholder-A selling her shares at pre-money valuation
- they want this to happen without any of their money going into shareholder-A
- other shareholders don't have the means to pay shareholder-A for her shares
Investor proposes that shareholder-A sells her shares to other existing shareholders, in return for a loan.
Anyone has experience of such situation?
Applicable law would preferably be UK law (under discussion).
How to improve cap table when the Investor does not want to buy anyone out?

by a searcher from INSEAD
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
23 views
2 comments
Sign in to see all replies.
Create an account.