minority-stake-sale

Vocabulary Word

Definition

'Minority-stake-sale' is when a person or company sells less than 50% of its ownership in another company. It's like selling a smaller part of a company you own, but still keeping the control.

Examples in Different Contexts

In mergers and acquisitions, a 'minority stake sale' involves selling a smaller portion of a company's equity, often to raise capital or bring in strategic partners without relinquishing control. An M&A consultant might say, 'A minority stake sale can be a strategic move to accelerate growth while maintaining majority ownership.'

Practice Scenarios

Tech

Scenario:

Our rapid growth requires additional cash flow. Exploring investment opportunities that could benefit our company's development.

Response:

I think a minority stake sale to a venture capital firm could provide the necessary funding and bring valuable business relationships.

Business

Scenario:

Given our current financial needs, there might be merit in offloading some of our assets. I'm especially attracted to options that still let us retain control.

Response:

I agree, considering a minority stake sale might be a feasible option to raise the required capital while retaining control.