Selling shares of a private company is not that easy. The complicated steps and processes are due to the companies not being out in the public yet. While they may be successful, it can take years before your shares turn into cash. Most of the time, you can only sell them when they go public. If you invest your stock, your options for selling your shares are much more limited.
But do not let this get you down. Nowadays, different transfer agency services firms help sell your private stocks. If you research well and find the right people, you will not encounter any problems.
4 Ways on How to Sell Private Shares
It is a good thing that selling private stocks is not that difficult now. Gone are the days when you have to wait for the company to go public. There are various ways to sell your private shares.
Deciding to sell your shares requires careful planning. You cannot jump in and decide to go sell your stock anywhere. Whether paying debts or diversifying your assets, get extra income by selling shares. It is a good idea to understand the various steps needed. If you do not know where to start, below are four ways on how to do that:
- Sell shares back to the company. This is one of the easiest ways to turn your equity into cash. Known as buyback or repurchase programs, they are either ongoing or seasonal. Most of the time, they are not very common. So, you should watch out if the company plans to offer a buyback program in the future. Once they do, make sure to immediately sell your shares. Also, when you plan to sell your stocks, ask permission from the company. By doing so, you and the company can discuss if the sale will happen. This also gives you an idea of how much you can get when you sell a part or whole. So, make sure to have communication with the company that you invested in.
- Sell shares on a secondary marketplace. The great thing about the stock market nowadays is that it is more open. This leads to more options when it comes to selling your private shares. One option is to sell them in secondary marketplaces. They connect employees who want to sell their shares to various accredited investors. Thus, this is a chance for you to get cash from them. It is also easier because regular investors are harder to deal with. There are a lot of secondary marketplaces out there from which you can choose. But, remember to do your research and choose the right one for you.
- Sell them in a tender offer. This is like the buyback program mentioned earlier. The company allows an outside investor to buy shares from existing shareholders. These veteran investors are from private equity groups or institutional ones. Thus, they are more big-time investors who have more money to buy a lot of shares. The company invites the buyers, sets the share prices, and manages the transactions. Tender offers are not common though, so you have to watch out for them. Please note that there is no guarantee you will be able to sell your shares. You will also go through long processes, as well as gather many requirements. So, be ready for everything.
- Sell shares after an IPO. Of course, this is another way to sell your share, but it is a waiting game. Wait for your private company to go public so you can sell your shares immediately. They will become common shares and you will finally see the value of your equity. If you are an early employee at a company that goes public, your rewards can be large.
Professional Experts in Stocks
We hope these four ways will help you in selling your private stocks. It is not easy to do this. So, we also recommend getting help from a stock transfer services firm to assist you.
As shares are not regulated in public stock exchanges, it is up to you to find a buyer. If you are looking for a broker to help you find a buyer, Legacy Stock Transfer, Inc. is the company for you.
Legacy Stock Transfer, Inc. provides you with the right agent services for your shares. By getting us, you get all the details that you need to buy shares. We offer personalized services that cater to the needs of our clients. We treat them like family. Our goal is to help all businesses, no matter the size and type. We also want them to succeed by giving accessible stock service solutions.
For details on our packages, call us at (+1) 972-612-4120 or email us at info@legacystocktransfer.com.