How is the share price set in a buyback or secondary?

By reference to a current independent valuation, usually anchored to the most recent priced round with an agreed discount for common shares and illiquidity. We model the pricing options so the board decides with full context.

Do employees pay tax on buyback proceeds?

Generally yes, with treatment depending on the country and on how the equity was originally granted. Tax review is built into program design; participants receive a plain language summary of their position before they commit.

Will investors see a liquidity program as a red flag?

Not when it is structured and modest. Institutional investors increasingly expect mature startups to run controlled liquidity; what concerns them is ad hoc, opaque selling, which is precisely what a structured program prevents.

How long does a program take to run?

A structured buyback typically takes six to ten weeks from design to settlement. Secondary introductions depend on buyer diligence, commonly one to three months. Every engagement starts with our team reviewing your structure; read our risk disclosure for the investor side of these transactions.

Startup Liquidity: Giving Shareholders Options Before the Exit

Startup equity creates real wealth on paper years before anyone can spend it. Employees hold vested options through a decade of growth, angels wait through multiple rounds, and founders decline every personal opportunity because everything sits in one illiquid asset. Liquidity programs address this deliberately: structured moments where early shareholders can sell a portion of their holdings to willing buyers, without waiting for an acquisition or IPO. This page explains the two mechanisms that work for Southeast Asian companies and how WOWS Global's advisory team arranges them.

Two Mechanisms That Work

Structured ESOP buybacks

The company, or an investor it invites, offers to purchase a defined portion of vested employee equity at a set price during a fixed window. Done well, a buyback is a retention tool: employees see the plan deliver cash, typically capped at 10 to 25 percent of vested holdings so participants keep meaningful upside, and the program runs on clear rules that treat everyone consistently. WOWS designs the program, models the pricing against a current valuation, and manages documentation and execution as part of our ESOP advisory work.
Secondary connections

In a secondary transaction, an existing shareholder sells shares directly to a new or existing investor; the company receives no new capital, but early holders realise value and the cap table often consolidates. These transactions need three things aligned: a willing seller, a credible buyer and a company board that consents. WOWS facilitates the introductions between shareholders and interested investors from our network and supports the process through valuation context and documentation. The parties transact directly on terms they agree between themselves. For background on how these transactions work, see our explainer on the secondary market.

When Liquidity Programs Make Sense

After a strong priced round, when a current valuation exists and investor interest exceeds allocation.
At company maturity milestones, commonly from Series B onward, when early employees have waited five or more years.
During founder transitions, where a partial sale is healthier than a distracted founder.
Ahead of hiring pushes, because a plan that has paid out once recruits better than any slide about future value.

What WOWS Global Does, and Does Not Do

WOWS Global advises companies on program design, provides valuation context, prepares documentation and introduces shareholders to interested investors from our network. WOWS Global is not an investment adviser, securities broker or securities exchange, does not provide investment advice, and does not operate secondary market trading of securities on the platform. Transactions are agreed and executed directly between the parties with their own advisers. Every engagement begins with a legal and structural review for your jurisdiction, because employee share sales touch securities and tax rules that differ across Southeast Asia.

Frequently Asked Questions

How is the share price set in a buyback or secondary?
By reference to a current independent valuation, usually anchored to the most recent priced round with an agreed discount for common shares and illiquidity. We model the pricing options so the board decides with full context.
Do employees pay tax on buyback proceeds?
Generally yes, with treatment depending on the country and on how the equity was originally granted. Tax review is built into program design; participants receive a plain language summary of their position before they commit.
Will investors see a liquidity program as a red flag?
Not when it is structured and modest. Institutional investors increasingly expect mature startups to run controlled liquidity; what concerns them is ad hoc, opaque selling, which is precisely what a structured program prevents.
How long does a program take to run?
A structured buyback typically takes six to ten weeks from design to settlement. Secondary introductions depend on buyer diligence, commonly one to three months. Every engagement starts with our team reviewing your structure; read our risk disclosure for the investor side of these transactions.