Marking up Private Placements
Hi everyone ✋
Had a hypothetical - If I were to acquire private shares for $50 at Company A and another firm wants to buy them for $75, will I legally be able take the 50% markup? Assumes Company A is good with it. How would you structure it?
This is a hypothetical - will consult a lawyer if needed but wanted to see if this forum had thoughts.
No one is going to tender their shares to you if there is a better offer. If you own the shares and then another firm comes in with a higher TO, then you'd be able to tender your shares. There would be a lot of SEC filing depending on how many shares you owned. Shares purchased through a TO are not restricted, so you can sell them. SEC is not too concerned about you selling because you just bought them for likely much higher than market and you'd be forced to sell at market.
I am assuming there is time between both offers - I get the shares @ $50 in 2021, sell it in 2023 @ $75.
that should be fine
Do you know if you need a broker dealer to execute the transaction?
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