liquidity-event-planning

Vocabulary Word

Definition

In the world of business and finance, a 'liquidity event' is when a company's investments or assets are converted into cash. 'Liquidity event planning', then, is all about making strategic plans for these cash-in moments.

Examples in Different Contexts

For startups, 'liquidity event planning' involves strategizing for a future event that will allow investors to cash out their investments. A startup CEO might discuss, 'Early in our journey, we're laying the groundwork for liquidity event planning, aiming for acquisition or public offering as our exit strategy.'

Practice Scenarios

Business

Scenario:

Given the potential merger on the horizon, we need to navigate our finances carefully to ensure stability.

Response:

I completely agree. It would be a good time to start our liquidity event planning to navigate the merger.

Startup

Scenario:

Preparing for an IPO involves much more than just issuing shares. We need to consider how to ensure financial success post-launch.

Response:

You're right. I think we need a comprehensive liquidity event planning before we proceed with the IPO.