Deal Structuring
Tag-Along Rights
A minority shareholder's contractual right to participate in a sale on the same terms if a majority shareholder sells its stake, preventing the minority from being left behind on worse terms.
Buyer Example
Buyer negotiating to acquire only a 60% controlling stake in a Lucknow FMCG distribution business insists the remaining 40% minority (held by two non-operating family members) waive tag-along rights for this specific transaction, keeping the deal size and cash outlay contained to ₹18 Cr rather than being forced into a mandatory 100% buyout at signing.