Glossary · Investor rights
Tag-along rights
If some shareholders sell control or a large block, tag-along lets smaller holders join the sale on the same price and terms so they are not left behind in a private company.
Related: Drag-along rights · Exit · Secondary sale
A bit more nuance▾
- Pairs with drag-along: drag forces everyone to sell when approved; tag lets minors join a good exit.
- Important for employees and angels who fear being stuck illiquid.
Go deeper▾
Discussion questions▾
- What minimum sale price should trigger tag rights for your team?
- How do options holders experience tag in practice?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.