Francois Boye Jan 30, 2018:

the concept of divestiture means two things: a) 'sortie' because the company pulls out of a business and b) 'liquidation' because the company pulls out by selling the business in question.

Divestiture can be partial (not all businesses are sold) or full (all businesses are sold)

Steve Robbie Jan 30, 2018:

NessieB: To me, the natural way to incorporate the idea of payment into the English is simply to say "cash". PE investors aren't shy of the word, and there isn't any need to be pompous about it - as AllegroTrans says, the French isn't pompous either.

Francois Boye Jan 29, 2018:

https://www.investopedia.com/terms/d/divestiture.asp

nessieB (asker) Jan 29, 2018:

To AllegroTrans: In reply to your first question, no, the company will not be wound up in the three circumstances put forward in the definition. So, as Steve R says, it's all about getting cash in exchange for your shares when you exit (doesn't that always happen when you exit). Any ideas about how to integrate the adjective 'Liquidative' (implying payment) in English ?

AllegroTrans Jan 29, 2018:

I don’t think the term is pompous at all 'Liquidative' here is an adjective implying payment

nessieB (asker) Jan 29, 2018:

You're right Steve, it seems that 'Sortie Liquidative'" is just a pompous way of saying 'Exit'; after all an exit always resuts in the sale of the shares/securities. 'Cash Exit' is a good option, but I may end up just translating it as 'Exit'. Thanks for your thoughts on the subject.

Steve Robbie Jan 29, 2018:

"Liquidative" surely just means that they'll be liquidating their investment - i.e. cashing out - if they do any of these three things. Why not just call it a "cash-out"?

nessieB (asker) Jan 29, 2018:

Hi Phil, I agree, I think the term was coined for this agreement (no hits on Google). Yes it's a private company that is planing to go public, but I don't see why it should be liquidated if its going public. Apart from the definition, there isn't much in the agreement in the way of an explanation. The 'Sortie Liquidative' gives entitlement to certain preferential rights. Here is some language to illustrate use:

Les actions de préférence de catégorie X donnent droit à :
[...]
- un droit économique spécifique lors de toute Sortie Liquidative égale à 20 % de l’ensemble des gains réalisés par les Associés concernés par la Sortie Liquidative, après déduction de la valeur nominale et de la prime d’émission des Titres souscrits par les Associés hors Fondateurs, dans les conditions fixées par l’article X du Pacte ci-après ;

AllegroTrans Jan 29, 2018:

Are these 3 circumstances in which the company will be dissolved perhaps? The rest of the document ought to refer to this "sortie liquidative" somewhere

philgoddard Jan 29, 2018:

Is it a private company, so that the company must be liquidated if any of these things happens?

philgoddard Jan 29, 2018:

I don't see what these three things have in common. It's certainly not liquidation of shares, and it doesn't get any hits, so it must have been coined for this document.
Do you have some examples of its use?