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

Startup

Scenario:

The market landscape is changing and we need to adapt. Collaborating with industry leaders could inject new insights into our business model.

Response:

Minority stake sale might just be the ticket to pairing with an industry influencer and gaining valuable mentorship.

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.