Drag-Along Rights

Definition

Drag-along rights let a majority of shareholders force minority holders to join an approved sale of the company on the same terms, preventing small holders from blocking an exit.

Wie es im Fundraising vorkommt

Standard in venture deals so an acquirer can buy 100 percent of the company once the board and majority approve.

Häufig gestellte Fragen

Are drag-along rights founder-friendly?

Broadly yes when thresholds are reasonable; they ensure a clean exit process. The details of who can trigger them matter.

What is the opposite of drag-along?

Tag-along rights, which let minority holders join a sale initiated by larger holders on the same terms.

Verwandte Begriffe

Shareholder AgreementAcquisitionTerm Sheet

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

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