M&A Foundations · glossary

Pre-emption right

A right of first refusal: existing shareholders must be offered shares — on a transfer or a new issue — before any outsider. On a sale, pre-emption rights in the target's constitution or shareholders' agreement must be waived or disapplied, or the transfer to the buyer can be blocked. Clause 2.2 · Chapter 3

Explained in Chapter 3, Deal Types and Structures, of M&A Foundations.

Related terms

Where this term lives

Every chapter of M&A Foundations is free to read, including the full training share purchase agreement. It is part of one complete fictional deal, with every document attached and a test after every chapter. Open M&A Foundations → · All terms A–Z →