Open a buyback offer
In Sttok, a buyback offer is a "Unit purchase offer" in "Incentive market". You choose who buys (it can be the company itself, through treasury shares), how many units, the price per unit, the limits per seller and the dates. Beneficiaries accept it and you manage each transaction from the "Admin panel".
On this page
Before you start
- The decision to buy, taken by whoever is responsible in the company: who buys, how many units and with what money.
- The price per unit. It usually comes from the valuation of the last round or from the one set by the company.
- The limits, if any: what share of their vested units each beneficiary can sell and the maximum amount per person.
- The start and end dates of the offer.
Where it is done: "Incentive market"#
"Incentive market" is a menu entry of its own. It is a market for units between beneficiaries: anyone with access can publish sell offers ("Sell my units") and purchase offers ("Launch purchase offer"). A liquidity window is a purchase offer launched by the company, so that beneficiaries can sell it part of their vested units.
How to do it#
- Go to "Incentive market". The home page shows the sell offers, the purchase offers and recent activity.
- Click "Create purchase offer". It is in the "Launch purchase offer" block. "Unit purchase offer" opens.
- Choose who buys. In "Select the beneficiary who will buy" it can be a beneficiary or "TREASURY SHARES", which is the company itself buying.
- Enter the "Number of units to buy". It is the total bought across everyone who sells.
- Decide the limits per seller. In "LIMITS PER SELLER", choose "No cap per seller" or "Set limits". With limits, fill in the "Maximum percentage of vested units that can be sold" and the "Maximum amount per shareholder/beneficiary".
- Enter the "Price offered per unit". Below it, "Estimated total amount" tells you what the whole purchase comes to.
- Set the dates. "Start date" and "End date" mark when the offer can be accepted. In "Eligibility calculation date" you choose 7, 15, 30, 60 or 90 days.
- Decide whether you allow partial acceptances. Tick "Allow partial acceptance" if the offer can be accepted for fewer units than you ask for. If needed, add "Additional notes".
- Click "Review offer". Check the summary and publish it.
Only vested units can be sold. The limits are calculated on each seller's vested units. Units still vesting are not included.
How much each person can sell#
When limits are set, both apply at once and the lower one wins. With a price of €19.40, a maximum of 50% of vested units and a maximum amount of €100,000:
| Beneficiary | Vested | 50% | Limit by amount | Can sell |
|---|---|---|---|---|
| Marta | 2,000 | 1,000 | 5,154 | 1,000 |
| Jorge | 14,000 | 7,000 | 5,154 | 5,154 |
Jorge is limited by the amount: 5,154 units at €19.40 come to €99,987.60, just under the maximum.
What happens next#
- The offer appears in "Purchase offers" in "Incentive market". Beneficiaries with access see it and accept it. This is how they do it.
- Each acceptance is a transaction. You manage them in the "Admin panel", "Transactions" tab, with their reference, date, buyer, seller, units, amount and status.
- In each transaction you accept, request any missing information or documents, request the signatures and validate when everything is ready.
Set up the market#
In the "Admin panel", "Settings" tab, you set three things:
- The offer conditions: those for purchase offers, sell offers and acceptances.
- The "Sale and purchase agreement": the template signed in each transaction, with its variables.
- "Market access": a switch per beneficiary that decides who can trade in the market.
Frequently asked questions#
Who buys the units?
Whoever you choose in "Select the beneficiary who will buy". For the company itself to buy, choose "TREASURY SHARES". The decision to buy, and with what money, is taken by the company outside Sttok.
What happens to units whose exercise price is higher than the offer price?
Selling them brings in no money: the offer price does not cover their exercise price. It is worth telling those beneficiaries so they leave them out.
How often do you have to open an offer?
There is no obligation. It is up to the company whether and when to open one. Many companies open one every two or three years, after a funding round.
Related
- What a liquidity window is A liquidity window, or buyback offer, is the period during which someone, often the company itself, buys part of the vested units of an incentive plan at a set price. In Sttok it is a purchase offer in "Incentive market", and in a company that is not listed it is the way to turn those units into money.
- Sell your units in a liquidity window While a purchase offer is open, you can sell part of your vested units, up to the maximum the offer sets. You go to "Incentive market", open the offer in "Purchase offers" and accept it. During the transaction, the company may ask you for information, documents and your signature before validating it.
- The pool and the resolutions that change it The pool is the total number of units the company has reserved for its incentive plans. It is approved by the general meeting, grows or shrinks with new resolutions, and is split into units granted to beneficiaries and units available to grant.