Is your company considering a tender offer? Here's what you should know.

Alex Cwirco-Godycki for Pave

Is your company considering a tender offer? Here's what you should know.

Private companies often operate under the assumption employees will wait years—sometimes up to a decade—for an initial public offering ( IPO ) or acquisition to realize value from their equity. However, a growing number of mature private companies are now implementing tender offers where employees can sell vested shares before a traditional exit event. These events provide early liquidity to loyal staff, but are they a strategic advantage or a costly distraction? Pave explains how tender offers work and highlights their benefits and drawbacks.

How Does a Tender Offer Work?

Tender offers allow employees to sell some of their vested shares to outside investors or back to the compan