4 ms·
Having right of first refusal doesn't mean they can veto a sale- it means they can buy the shares at the offered price instead. Either way the seller gets to s
by ensignavenger 5y ago
Having right of first refusal doesn't mean they can veto a sale- it means they can buy the shares at the offered price instead. Either way the seller gets to sell their shares.
It makes it difficult to attract buyers though- why go through all the due diligence when Stripe could just exercise their right to buy the shares instead of you at the same price you would have paid?
Still, different from being able to veto the sale and block it entirely.
- pianoben 5y agoFrom the buyer's perspective, it's as good as a veto.