Deal Structuring
Drag-Along Rights
A contractual right allowing a majority shareholder or the acquiring buyer to compel minority shareholders to sell on the same terms, ensuring a clean 100% acquisition.
Buyer Example
Buyer acquiring a 75% stake in a Nashik winery from the lead promoter negotiates drag-along rights over the remaining 25% held by three minority family members, so that if the lead promoter later exits fully, the buyer can force the minority holders to sell on identical terms — avoiding a permanently stuck minority position that would block future 100% consolidation or a subsequent sale.