Dear start-up founder,
One of your preliminary considerations must include who gets what in the event of liquidation e.g. Who gets paid first in the event of liquidation?
Liquidation doesn’t necessarily mean that the company will fold up. It could also mean mergers and acquisitions, selling the company, and buyouts.
The above is of utmost importance because investors would want to ensure that their interests are secure in the event of mergers, acquisitions, selling, or buyouts of the company.
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