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Thursday, August 6, 2009

Liquidity Path

Liquidity Path
The path taken by a company to provide liquidity for company founders or owners. The most common liquidity paths are through mergers and acquisitions to a larger company, and through initial public offerings (IPOs) of stock to investors.

 

This is a way of referring to the process of taking a company public. Without a path to liquidity, private company owners may not be able to convert their ownership in the company to any other means of currency or investment.

 

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