My company’s IPO got delayed. What now?

The IPO window has opened, but uncertainty still persists  

IPO timelines are notoriously unpredictable. Market conditions, geopolitical uncertainty and shifting investor sentiment can all push a company's public offering off course, sometimes by months or even years.

If you're an employee with stock options in a private company that had plans to go public that have since been derailed, a delayed IPO doesn't have to mean delayed liquidity. It's still possible to sell your pre-IPO shares. Keep reading to find out how Forge can help you navigate the process of selling your private company stock on the private market.

Build a private market strategy with Forge 

The private market is playing an increasingly prominent role in the global financial system as companies stay private for longer, leading to demand for private company shares from a wide range of investors. This shift has led some employees to explore secondary market transactions as one potential path to liquidity.

That said, trading in the private market is more complicated than selling stock on a public exchange. Potential sellers face federal regulations that limit how shares can be sold, company  selling restrictions and the fact that valuations and pricing are determined with less transparent methodology than publicly traded stocks. The combination of these factors presents unique challenges for anyone who wishes to sell on the secondary market.

With its end-to-end support, market insights and access to a broad network of qualified buyers, Forge helps shareholders navigate the private market with greater clarity, confidence and ease.

As a seller, what can I expect from the current market?

A growing number of employees are looking to the private market as a way to unlock the value in their stock option. While private stock prices aren't immune from the impact of broader public market movements, they tend to be less sensitive to short-term volatility than newly public companies.  

Can you sell private company stock?

Yes. Private company shareholders can sell their equity, though the process is subject to share availability and transfer restrictions. Unlike public stocks that trade freely on an exchange, private shares typically require company approval before they can change hands.

The most common restriction is a Right of First Refusal (ROFR), which gives the company the option to purchase shares before an outside buyer does. Other limitations may include lock-up periods, blackout windows and contractual clauses in your equity agreement. Reviewing these terms early can help avoid surprises later in the process.

The selling process on Forge 

The process of selling shares on Forge generally involves a series of steps: 

1. Create a Forge account. 

The first step in the process is to create a Forge account. 

2. Submit sell interest.   

After opening their account and completing an initial consultation, sellers submit an indication of interest (IOI) including the number of shares they wish to sell and a target price.  

3. Matchmaking with buyers.   

Forge uses its marketplace to match sellers with potential buyers. Buyers may include institutional investors, family offices or high-net-worth individuals. 

4. Price Discovery. 

Forge facilitates negotiations between buyers and sellers to agree on price, often based on recent funding rounds, company performance and share class. 

5. Due diligence and documentation. 

While investors and sellers should execute their independent due diligence prior to submitting an IOI, both parties undergo a formal due diligence process after agreeing on transaction terms. Forge provides necessary documentation and manages communication between both sides throughout the entire process.  

6. Transaction closing. 

The final step involves executing agreements, handling regulatory or internal company approvals, and transferring shares and funds. [Note that: sellers may incur fees when executing a sale.]