Private Equity Share Transfers
Many early stage equity investments into private companies are by way of a private share or unit placement. Subsequent private sales and share transfers are routinely required by investors for several reasons including liquidity. Private equity trading systems are a new liquidity solution.
In the past, sometimes months were spent finding a buyer or seller, arranging notarized documents, verifying payment and completing a costly share transfer.
Greenhill Equity Solutions Ltd. (GES) has extensive experience with software development and has developed systems to streamline equity transfers for both its client companies' existing shareholders and new share purchasers. Physical paperwork is greatly reduced or eliminated allowing e-distribution and the digital execution of several required documents.
The GES system enables rapid private share transfers on a timely and cost effective basis. Such share transfers can be negotiated on terms acceptable to the parties on either side of the transfer.
The parties to a transfer supply the required transaction information by completing our custom fillable web-forms. The forms are submitted online without printing or putting pen to paper. This information populates all required internal GES documents and creates final agreements for formal electronic execution.
The execution of most transfer documentation is automated through our use of sophisticated digital e-signatures which allows clients and investors to legally sign documents from wherever they are, on computers and handheld devices. Trusted, legally valid, and enforceable around the world, the digital e-signature system meets stringent legal and security requirements.
Typically, buyers are very reluctant to pay funds directly to the seller prior to closing. With GES, funds from a purchaser of private shares are held in escrow until all executed documentation is received and legally reviewed for the transfer/closing of a transaction. At closing the net funds, after all fees, are then wired to the seller.
Most share transfers are completed within days instead of months.