Secondary Transactions – Partial Share Repurchase

A share repurchase is a transaction where a company buys back its shares from the shareholders. And as this takes place after the primary share issuance, this is also called a secondary transaction.

You can easily repurchase the shares back from a shareholder on the Eqvista app. Here is a step-by-step method on how to repurchase the shares in your company.

Step 1: Log into your Eqvista account and select your company account. 

On the dashboard, click on the option that says “Shareholders” on the left side menu. 

Step 2: You will reach the following page. From here, we will click on “Edward William”

Step 3: After this, you will reach the following page where you will be able to see all the shares that have been offered to Edward. On this page, select the grant name that you would like to repurchase back from the shareholder, as below.

In this case, we selected the grant “SB-005”.

Step 4: Once done, you can see all the details of this grant offering. Click on the button “Actions” on the right-hand side of the page, and select “Repurchase Shares”.  This will begin the process of the company repurchasing the shares back from the shareholder.

Step 5: A new panel will appear where you will have to select if the repurchase is Full or Partial.

Note: You can also repurchase all shares by clicking “Repurchase all shares”. To learn how to repurchase all shares, check out the support article!

In this case, we selected the option of “Partial Repurchase”. With this, you now have to add all the details in the fields available. Add the number of shares being repurchased and the number of shares remaining will be automatically displayed. The price per share and repurchase date will be automatically filled.  

If the repurchase date is not today and the price per share is not the same as the initial share grant, then you can edit that as well. As you edit the details, you will see the right-side panel updating as well.

Once you have added all the details, click on “Submit Repurchase”.

Step 6: Then, you will be redirected to the secondary transaction details.

For more details on the share repurchase and the grant, click on the share name here. In this case, it is – “SB-005”.

Step 7: The shares would then be repurchased by the company and you will be directed back to this shareholder’s grant where you can now see the number of shares reduced.

Note: After partially repurchasing the shares, you cannot edit the grant details. You can add document to the grant by clicking on “Add Document”. Check out the support article to know more about adding documents to grants.

To see how this affects the secondary transactions part of the company, follow the next step.

Step 8: To see the secondary transactions list, click on “Cap Table” from the left-hand side and then on “Secondary transactions” from the drop-down box that appears. You will reach the following page. From here, click on the tab “Repurchases” as below.

You will see the details of the recent repurchase along with all other repurchases made by the company. And just like this, you can easily repurchase shares back from a shareholder using Eqvista.

Partial Repurchase Using Spreadsheet

Step 9: Suppose you want to perform repurchase using the spreadsheet feature. At the top of the table, click on “Preferred Equity Grants”. Under the Secondary Transaction section, the first one is “Secondary Transaction” which provides the different options to choose from. Once you select “Repurchase” from the drop-down menu, enter the date, amount, and price per share.

After adding the details, click on “Check Data”. If you want to cancel the process, click “Discard all Changes”.

Step 10: Once your details have been checked, a data validation message will appear: either the entered details are correct and you can save them, or some information may be missing or incorrect.

When there are some issues or missing information, the validation message will appear in “Red” along with the details of the issue.

Once the details have been checked, click on “Save”.

Step 11: The record of the repurchase can be seen by clicking “Cap Table” on the left side to get a drop-down menu and selecting “Secondary Transactions”. On this page, click on “Repurchases” to verify if the grant is repurchased.

Note: Similarly, you can also repurchase issued options and warrants.

To know more about how to use the Eqvista app, check out our other support articles here!