Understand when drag-along provisions can be triggered and what protections apply
Drag-along: Majority holders can force minority holders to sell their shares in an acquisition on the same terms. Protects the buyer (who wants 100% of shares) and majority holders.
Tag-along (co-sale): Minority holders can choose to sell alongside majority holders on the same terms. Protects minority holders from being left behind in a sale.
I advise both majority and minority holders on drag-along mechanics, negotiate protections, and review M&A transaction terms.
Get HelpI advise startups on acquisitions, drag-along mechanics, and stockholder consent processes.