Liquidity Event

A Liquidity Event refers to a financial occurrence where a company’s shareholders or owners can convert their equity into cash. This could be through an acquisition, merger, initial public offering (IPO), or asset sale. For investors, liquidity events are an important opportunity to realize returns on their investments.

Liquidity events allow companies to offer shares for sale to the public, or be acquired by a larger company, often resulting in an exit strategy for early investors or founders. In the UAE’s growing startup ecosystem, liquidity events are significant milestones, often triggering the distribution of capital to investors and business owners.