Drag-Along vs Tag-Along Rights Explained | Shareholder Agreements Made Simple скачать в хорошем качестве

Drag-Along vs Tag-Along Rights Explained | Shareholder Agreements Made Simple

What happens if investors want to sell the company but founders disagree? Or if founders sell their shares without including investors? In this video, we break down Drag-Along and Tag-Along Rights — two critical clauses in shareholder agreements that determine how exits actually happen. As part of our series demystifying investment documents, we explain: 🔹 What Drag-Along Rights are and how majority investors can force a sale 🔹 Why buyers prefer 100% ownership in M&A deals 🔹 What Tag-Along (Co-Sale) Rights are and how they protect minority shareholders 🔹 How these clauses prevent insider exits and unfair deals 🔹 Best practices: supermajority approval, notice periods, and alignment Whether you're a founder, startup employee, or early-stage investor, understanding these rights is essential before signing any term sheet or SHA. Drag enables clean exits. Tag ensures fairness. Together, they align everyone at exit. Subscribe for more breakdowns of startup investment documents and venture capital basics.