Cleveland News

A few years ago, it was virtually impossible to find buyers for private startup shares. Today, however, there’s a wide array of online platforms and a whole cottage industry of buyers. But what are the ups and downs of founder liquidity? In this read, we are going to look at some of the important issues to consider before selling your pre-IPO (Initial Public Offering) shares.

Why Sell?

This might seem like an obvious question, but why should you consider selling your shares in the first place? It seems like a bad idea to sell early, as the reason to invest in the first place was to be in it for the long term. However, there are some reasons you may want to seek founder liquidity including:

-An urgent liquidity need.

-You no longer believe in the upside of the firm.

-A huge portion of your net worth is in one basket and want to diversify.

-You still believe in the upside of the company but want to protect yourself against the downside.

There’s a lot to cover in regards to the history of founder liquidity which we are not going to delve into in this read. However, we are going to discuss some things you can do to ensure your founder liquidity works.

1. Only Sell When The Company Has a Gained a Substantial Level of Success

If you value your relationships with the investors, co-founders and employees, then you’ll want to restrict your selling activity until the firm has achieved substantial success. Of course, substantial success in this context is subjective, but there are some ways to gauge it including:

-The firm has achieved reasonably high revenue amounts, usually $2 to $5 per annum.
-The company has gained a substantial amount of revenues and it’s still growing fast, usually over $5M per annum.
-The fundraising process is easy and fast, with a high valuation.

2. To Key Investors in Advance

Your investors and co-founders may resent you if you ask for liquidy and they’re not offered the same opportunity. Ideally, it’s easy for them to think that you no longer have confidence in the company.

However, if you bring up your desires for founder liquidy well in advance, you can avoid these concerns. Most firms have a Right of First Refusal. This implies that you’ll likely have to give your firm and the investors the right to purchase your shares before you can sell them to a third party.

Also, it’s worth considering issuing liquidity-friendly stock to the founders from the start. This is a founder-friendly stock that’s designed to make liquidity easy without causing harm to the company and shareholders.

3. Consider The Tax Implications

The taxation of stock can be sophisticated. If you sell options or stocks too early, you might get hit with a huge tax bill. It is important to be careful that your tax obligations to not offset the majority of your gains and ascertain that the structure and timing of the sale are optimized for favourable tax treatment.

Tax treatment mechanics are well beyond the scope of this read and so, it is important that you polish up on the different tax strategies as well as consequences. It’s also advisable to seek advice from a financial expert.

If you are someone that is constantly misplacing things, you are likely to benefit from getting yourself Bluetooth trackers. There are plenty of reasons you might want to consider getting a Bluetooth tracker nowadays. In this article, we will be discussing some of the biggest reasons to consider doing so.

Reasons To Get Bluetooth Trackers:

1. Affordable.

One of the reasons you will want to at least consider getting yourself a tracker is due to the trackers themselves being so affordable. You should be able to get a tracker that is extremely affordable that can add a lot of value to your life. Nowadays, you can find trackers that you will be able to lose and replace if need be without spending a lot of money.

2. Never Lose Your Wallet.

If you get yourself a Bluetooth tracker, it is going to allow you to avoid losing your wallet. A tracker is a great way to keep track of your wallet which can really give you the peace of mind that you might need. Losing your wallet is never fun. By placing a tracker in your wallet, you will be able to keep track of it at all times by simply using your mobile phone. This can make finding your wallet very simple.

3. Portable.

These trackers have become much more portable than ever before. You will be able to use one of these trackers in your wallet or even in your phone case without adding any bulk to it. Because they are so portable, they will offer you a great way to really get more out of your use of them because you will be able to use them in a variety of ways.

4. Alerts.

There are trackers nowadays that can send you alerts if someone is out of a specific zone that you have set for them. This can be very useful if you are looking to track your kids. If you notice that your kids are out of their designated zone such as their school, it is going to give you an idea of where you would be able to find them. This alone can make it worth it for parents because it will make it much easier to know where your kids are at all times.

Overall, there are so many reasons you might want to invest in a tracker. Whether you are going to be using it for something like your wallet or phone or you will be using it for your kids, you should be able to get a lot of value out of a tracking device. They are much more affordable than ever before and they offer much more features that make them incredibly desirable for those that want peace of mind. If you are going to be getting yourself Bluetooth tracking devices, you will want to find the device that is small enough that fits your use-case scenario. Along with this, you want to find one with the features that you are looking for in a tracking device.

If you would like to attend pharmacy school because you have dreams of becoming a pharmacist, you are going to need to take the PCAT exam. The idea of taking such an exam could make you feel a bit intimidated, but you should try to stress less and study more to ensure that you know what you are doing when it is time to take the exam. The standardized test covers several subjects, including reading comprehension and biology. It helps to know of the subjects you are getting tested on because then you can study those subjects for a bit of time each day.

Take PCAT Practice Tests

Did you know that you can take some practice tests for the PCAT online? It is convenient to have access to this opportunity because then you can test yourself as often as you want and need to. The practice tests may have more than 200 questions on them, so make sure that you take these tests on a day when you have plenty of time and no plans. After you have taken the practice tests, you can review your results and see which questions you got wrong. It is beneficial to see what you are getting wrong because then you can work on making improvements by studying those specific subjects a bit more than you once were.

Get a Prep Book to Regularly Review

Get a PCAT preparation book to review. The book is going to become your new best friend for the next several weeks because you are going to need to spend a lot of time reading through it and going over all the important topics that it covers. It is easy to find the PCAT prep book online and even in a lot of local stores. Amazon, Target, and Barnes and Noble sell this book for less than $40. Make sure that you are buying the most updated version of the book because there are changes that are often made to these books over time.

Use Various Online Study Guides

You can find a lot of online study guides for the PCAT. Some of these guides were created by people that were taking the exam and wanted to outline everything in a specific way to make it easier for them to remember the information they were reading. Check out the different study guides and then carefully review the ones you like most. You can look at them online from your laptop or phone, but you can even print these guides out and take them with you to study wherever you decide to go.

PCAT preparation is a must if you would like to pass the exam and continue moving forward to get the education you need to have to pursue the career you want. Working in the pharmaceutical industry is often exciting and rewarding, but it does take work to get there. It all starts with studying for the PCAT, taking the exam, and then passing it to move forward.