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Investment vehicles, being designed as structures with an end, must first try to recover the money invested in the different projects. For this, the manager and the employees must carry out the exit operation of the shareholders of the invested company. Cumming and Macintosh (2003) have defined 5 possible ways to materialize and execute the sale of my shares of a company or society:
Sell my shares through an OPE
The investor sells his shares of the company, through a public offering to sell shares by incorporating the company into the stock market.
Acquisition of my shares
It sells its shares of the company to a third party that is usually a company or an industrial group knowledgeable of the sector, and probably, after the purchase there is a strategic objective: to merge both companies and integrate them horizontally or vertically, have access to their business model, to the company’s technology, to its client portfolio, to its market, etc.
Sell my shares in the secondary market
The investor sells his shares to another investor. They are usually investors with a larger investment vehicle and they invest in companies that are in a different phase than the company was when the first investor made his investment.
It is Entrepreneur himself or the company itself that repurchases the investor’s shares.
Given the poor evolution of the company, the lack of viability and the need to continue providing more funds under the premise of a low or no probability of recovery in the medium or long term, the investor decides not to spend more time, effort and capital. These invested companies will end up in a high percentage in a liquidation process. The total loss of the investment occurs.
Precautions when selling my shares of a company
If you managed to sell your shares in a not going to have problems because the commissions public market (stock) market of values control the process. On the other hand, if you are going to sell your shares in the secondary market, you should consult a lawyer and sign the transaction in a notary.