A company-sponsored tender offer is one method to reward longstanding employees and shareholders with partial liquidity and encourage them to remain aligned with a company’s long-term growth.
Shareworks by Morgan Stanley has helped dozens of private companies organize and conduct their liquidity programs through our platform. Find out how your company compares to other companies who ran tender offer events through Shareworks since 2020 by answering these five questions.
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Is it Time to Run a Liquidity Event?
In 2020, the median valuation of companies on the Shareworks platform was $1.7 billion.
However, tender offers aren’t just for billion-dollar unicorns; we have helped companies run liquidity events at the earlier of a $250M valuation or Series C funding round, which is typically when we start to see shareholder liquidity pressure build up.
What is Your Company’s Current Valuation?
Less than
$2.5 billion
a.
More than
$2.5 billion
b.
Question 1
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Back
The median company conducting a tender offer event on the Shareworks platform since 2020 had just over 400 vested shareholders.
While this number is in no way an absolute ceiling or floor, in our experience, we tend to see companies hold off on running tender offer events until there are at least 100 vested shareholders to ensure that the tender is worth their time and effort.
How Many Vested Shareholders Do You Have?
251 – 500
c.
500 – 1000+
d.
Question 3
100 – 250
b.
501 – 1,000
b.
250 - 500
a.
2,000+
d.
1,001 – 2,000
c.
1 – 100
a.
Next Question
Back
Back
If you recently raised money or are planning to in the next six months, now may be an opportune time to run a tender offer, for a few reasons:
1. You have the potential to limit share dilution by transferring shares to new investors without issuing new equity.
2. You may already have much of the information needed for your tender offer.
3. You may be able to use the proceeds of your primary fundraise to cover the cost of the tender offer without using excess balance sheet cash.
Have you conducted a fundraise in the last six months or plan to in the next six months?
Question 4
No
b.
Yes
a.
Next Question
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If you recently raised money or are planning to in the next six months, now may be an opportune time to run a tender offer, for a few reasons:
1. You have the potential to limit share dilution by transferring shares to new investors without issuing new equity.
2. You may already have much of the information needed for your tender offer.
3. You may be able to use the proceeds of your primary fundraise to cover the cost of the tender offer without using excess balance sheet cash.
Back
Back
Based on the companies and transactions we’ve seen on the platform, now might be the time to start planning a liquidity program.
But wait – there’s a lot to think about before you get started, including how your company is going to execute a tender offer event. The Shareworks platform can help!
Our Liquidity Team can help you think through the logistics of running a tender offer event on the Shareworks platform and share best practices from similar companies.
Disclaimer +
Shareworks by Morgan Stanley services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.
Morgan Stanley Smith Barney LLC. Member SIPC.
CRC#3684764 07/2021
Valuation:
More than $2.5 billion
Company Age:
20+ Years Old
Recent/Upcoming Fundraise:
No
See Form
Results
Retake the quiz
Valuation:
Less than $2.5 billion
Company Age:
10 – 20 Years Old
Company Age:
4 – 10 Years Old
Company Age:
Less Than 4 Years Old
# of Shareholders:
2,000+
# of Shareholders:
1,001 – 2,000
# of Shareholders:
501 – 1,000
# of Shareholders:
500 – 1000+
# of Shareholders:
251 – 500
# of Shareholders:
100 – 250
# of Shareholders:
1 – 100
# of Shareholders:
250 – 500
Recent/Upcoming Fundraise:
Yes
See Form
Disclaimer +
Shareworks by Morgan Stanley services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.
Morgan Stanley Smith Barney LLC. Member SIPC.
CRC#3684764 07/2021
Based on the companies and transactions we’ve ran on the Shareworks platform, your company does not mirror the typical company running a tender offer event.
But wait – that doesn’t mean your company can’t or shouldn’t run a liquidity event. Each tender offer we run has unique goals, and the open API Shareworks platform can be customized to meet many of these goals.
Our Liquidity Team can help you think through the logistics of running a tender offer event on the Shareworks platform and share best practices from similar companies.
To request a 1-on-1 consultation, please fill out your information below:
Recent/Upcoming Fundraise:
No
Recent/Upcoming Fundraise:
Yes
# of Shareholders:
2,000+
# of Shareholders:
1,001 – 2,000
# of Shareholders:
501 – 1,000
# of Shareholders:
250 – 500
# of Shareholders:
500 – 1000+
# of Shareholders:
251 – 500
# of Shareholders:
100 – 250
# of Shareholders:
1 – 100
Company Age:
20+ Years Old
Company Age:
10 – 20 Years Old
Company Age:
4 – 10 Years Old
Company Age:
Less Than 4 Years Old
Valuation:
More than $2.5 billion
Valuation:
Less than $2.5 billion
Recent/Upcoming Fundraise: No
Recent/Upcoming Fundraise: Yes
# of Shareholders:
2,000+
# of Shareholders:
1,001 – 2,000
# of Shareholders:
501 – 1,000
# of Shareholders:
250 – 500
# of Shareholders:
500 – 1000+
# of Shareholders:
251 – 500
# of Shareholders:
100 – 250
# of Shareholders:
1 – 100
Company Age:
20+ Years Old
Company Age:
10 – 20 Years Old
Company Age:
4 – 10 Years Old
Company Age:
Less Than 4 Years Old
Valuation:
More than $2.5 billion
Valuation:
Less than $2.5 billion
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