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🌍 US & Europe · Exits & dealsMergers & acquisitions (M&A)
Also called: M&A, acquisition, takeover
In one line
The sale or combination of companies — a common exit in which your private shares are bought out for cash or acquirer stock.
In plain English
If your company is acquired, your shares are typically converted into cash, acquirer stock, or a mix, according to the deal and the liquidation waterfall. It's a frequent alternative to an IPO.
If you were explaining it to a 5-year-old
A bigger company buys your toy club. In return, your toys are swapped for coins or for toys from the bigger club.
Why it matters when you sell
An acquisition is a major liquidity event, but preferences and deal terms decide what common holders actually receive — model it before assuming a windfall.
Related terms
Put it to use
Options in an acquisition · Exit waterfall
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
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.