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Private Equity Right of First Refusal Agreement

A private equity right of first refusal creates a legal right for a particular person or business to have the opportunity to purchase certain equity if it comes up for sale.


  • Attracting investors to your private company before you offer any private equity for sale
  • Protecting your equity interest in a company that you own or co-own


If you own a private company, you may want to raise capital by selling private equity. This is a relatively common business transaction, but because you only have a limited number of shares to sell, offers of equity should be carefully planned to maximize value.

Unlike the public equity that is traded openly on stock exchanges, private equity is typically a limited sale of a portion of a private business to an investor. Sometimes, founders or key players in companies may want to have the option to retain a certain degree of ownership of their company in the event of a private equity sale. Alternatively, owners of a private company may want to offer preferential treatment to investors they particularly want to work with. In these cases, a private equity right of first refusal may be appropriate.

A right of first refusal is a contract that gives the holder the option to proceed with a particular business transaction first, before anyone else may have the opportunity. A private equity right of first refusal agreement gives a person or business a right to be presented with an offer of private equity before any other potential investors can get involved. Use this interactive form to create a private equity right of first refusal agreement that gives preferential treatment to key figures in your company.