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Liquidity Event

Related terms: accredited investor, private equity, mergers and acquisitions (m&a), liquidity, cash flow management

What is a liquidity event

A liquidity event is a financial transaction that enables business owners or investors to convert their equity holdings into cash. This can occur through mechanisms such as an Initial Public Offering (IPO) or the sale of the company. Liquidity events are significant for family offices as they provide an opportunity to realize the value of their investments and reallocate capital according to their strategic objectives.