What Is an Equity Sale?
An equity sale happens when business owners sell part of their business to investors or buyers. Buyers don’t buy the whole business; instead, they buy a portion of it, like shares of a company.
Equity sales usually happen in mergers and acquisitions or when a business owner wants to raise capital.
Equity sales can perfectly be illustrated by sharing pizza with others. You give away slices to your friends, and they share the toppings (profits) and any burnt crust (liabilities).