How selling unlisted shares works

Selling unlisted shares is different from the sale of listed shares, as there is not an open marketplace to use. Therefore, the process often needs to be planned more carefully. This can include valuing the shares, finding the right buyer and making sure the contracts are correct.

How to find buyers?

In the absence of a stock exchange where shares are traded openly, it is necessary to work in other ways. Common ways are to use your network of contacts, business relationships or to sell through a stockbroker specialising in unlisted companies. A broker can make a big difference by matching sellers with investors who are actively looking for new opportunities. This way, the process is both faster and more structured.

Valuation and contracts

A key part of the sale is to establish the value of the shares. This can be done through a professional valuation that takes into account the company's finances, growth opportunities and market position. Once the price is set, it is important to draw up a contract that clearly sets out the terms of payment, the date of transfer and other conditions. Careful documentation reduces the risk of future disputes and creates certainty for both seller and buyer.

Common challenges

A sale of unlisted shares can take time and again differs from sale of listed shares. Buyers often want to review the company's finances and prospects before making a decision. It is therefore a good idea to prepare supporting documents in good time, such as financial statements, shareholders' agreements and any forecasts. The more information available, the easier it will be to finalize the deal.

Monitor Capital Markets role

At Monitor Capital Markets, we have extensive experience in structuring sales of private equity. Our services includes valuation, drawing up contracts and contact with potential buyers. By working with us, you can streamline the process and feel confident that everything is done according to current rules and practices.