Secondary transactions, from discovery to settlement
Incentiv Transact facilitates secondary transactions from buyer and seller discovery to final settlement — deal mapping, ROFR management, board approvals, compliant execution, escrow, and transaction settlement in a single workflow.
Deal discovery to settlement in one workflow
Complete deal mapping, ROFR management, board approvals, compliant execution, escrow, and transaction settlement — all in a single digital workflow instead of scattered emails and manual coordination.
ROFR notices and waiver collection
Existing shareholders are notified and waivers collected digitally, so the right of first refusal process no longer holds up a deal for weeks.
Board resolution drafting
Board approvals are drafted and tracked as part of the same workflow that manages deal documents and transaction status.
Escrow-protected settlement
Bank-grade escrow secures funds before any share transfer proceeds, with real-time settlement status visible to all parties and FEMA filings auto-generated for the transaction.
Walking through a bilateral secondary sale
Consider an early investor in a private company who wants to sell part of their stake to a new investor. Once both sides agree on price and quantum, the seller submits the transfer request. Existing shareholders with a right of first refusal are notified and asked to waive or exercise their right. Once waivers are collected, the board reviews and approves the transfer. The buyer's funds move into escrow, compliance documentation and FEMA filings are prepared, and once every condition is met, the shares are transferred and the escrow releases funds to the seller — with each step logged for the audit trail.
- 1Seller and buyer agree on price and submit the transfer request
- 2Existing shareholders are notified under ROFR and asked to waive or exercise
- 3Board reviews and approves the transfer once waivers are in
- 4Buyer's funds are secured in escrow and compliance documentation is prepared
- 5Shares transfer and escrow releases funds once conditions are met
Common questions about secondary transactions
What is a secondary transaction in a private company?
A secondary transaction is the sale of existing shares from one shareholder to another — for example, an early investor or employee selling their stake to a new investor — rather than the company issuing new shares. Incentiv Transact provides the deal discovery, ROFR management, escrow, and compliance infrastructure to execute these sales.
What documentation does Transact generate during a secondary transaction?
Transact manages deal documents, drafts board resolutions, and auto-generates FEMA compliance filings and documentation as part of the same workflow that tracks ROFR notices, waivers, and approvals.
How is money protected during a secondary transaction?
Buyer funds are held in bank-grade escrow and are only released once the conditions of the transaction — including KYC/AML checks and share transfer — are met, so settlement doesn't rely purely on trust between the parties.
Ready to run a secondary transaction on Transact?
Book a demo and we'll walk through deal mapping, ROFR management, and escrow-protected settlement for your next transaction.