Co-sale right

Also called: tag-along at share level, co-sale

In one line

A right letting certain shareholders join your sale and sell their shares alongside yours, on the same terms.

In plain English

If you find a buyer, holders with co-sale rights can insist on selling some of their shares too, taking part of your buyer's demand. It can shrink how much you get to sell.

If you were explaining it to a 5-year-old

You found someone to buy 10 toys. But another kid has a rule that lets them sell some of theirs in your deal too — so you might only sell 6.

Why it matters when you sell

Co-sale can reduce the size of your secondary. It's another transfer clause to check before you assume you can sell your full stake.

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Co-sale right

Related terms

Put it to use