Funding and ownership
Drag-along
A clause letting the holders of most of the shares force the rest to sell on the same terms when a buyer wants the whole company.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
The buyer wanted 100 per cent, so the majority used the drag-along.
Why it matters to you.
If you hold shares or options, you may not get a say in a sale. You'll usually get the same price per share as everyone else of your class.
Related terms.
Videos.
No video mentions Drag-along by name yet. These are on the same topic, Business & startups.