Pre-emption right

Priority right of a shareholder to buy the shares of another shareholder who plans to sell them. When a significant shareholder intends to exit a company, another shareholder can exercise its pre-emption right, avoiding the entry of a third party investor. This right is negotiated in the shareholders' agreement.

Private equity

Generic word for all kinds of equity investing carried out by professional investors (funds, business angels). This word thus combines venture capital, development capital, turnaround capital and LBOs.

Public to private (P to P)

Acquisition of a significant portion of the equity of a public company followed by an exit of the stock exchange.