# Liquidity event

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In [corporate finance](/source/corporate_finance), a '''liquidity event''' is a transaction that enables the owners of a company to realize the value of their investment, such as a merger, acquisition or [initial public offering](/source/initial_public_offering).<ref>{{cite web|url=http://www.investmentnews.com/article/20140716/BLOG03/140719938/liquidity-events-heating-up-reit-market-this-summer|title=Liquidity events heating up REIT market this summer|author=Bruce Kelly|publisher=Investment News|accessdate=January 11, 2015|date=July 16, 2014}}</ref> A liquidity event is a typical [exit strategy](/source/exit_strategy) for private investors, who otherwise have difficulty proving the company's value.

A liquidity event is not to be confused with the [liquidation](/source/liquidation) of a company, in which the company's business is discontinued.

==References==
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==External links==
* [http://nesheimgroup.typepad.com/my_weblog/2005/12/company_valuati.html COMPANY VALUATION AND LIQUIDITY EVENT: Don’t show up without them!]
* [http://www.fbn-i.org/fbn/main.nsf/Resources/391DF5ACFE7F58C08725729000597FD0/$file/FINAL%20JPM_Cash-Out.pdf?OpenElement Guiding your family through a liquidity event. Cashing out without melting down.]
* [https://www.theregister.co.uk/2006/05/30/segway_ipo/ Segway confuses investors with 'liquidity event' vow]

Category:Corporate finance
Category:Strategic management
Category:Entrepreneurship
Category:Business terms

{{finance-stub}}

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