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Question for anyone holding stock. A private company has an offer from an investor to buy shares at X, which the company feels is 10% undervalued. However, the company knows of a shareholder (could be you or someone else) who would sell at a 20% discount. Should the company:

tell seller $offer, intro
16.6%
broker midpoint + fees
12.9%
prop buy low, sell high
24%
see results
46.5%

867 votesFinal results

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Jesse Powell

@jespow

Replying to

@romanitup

Does the company owe the buyer any loyalty pre-transaction or only the existing shareholder seller? You could construct the contract in a way that you have an out if you don't get both sides, eliminating the gambling perception.

12:00 AM · Nov 11, 2020Twitter Web App

Replying to

and

In normal fin terms, you buy Call Option on Sellers shares, agreed to sell at X price within next 6 months in exchange for 1% of value paid immediately (basically) - only if you want it. I'd tell buyer funds will be used to repurchase shares, not invested or saved (personally).