A related right is the Co-Sale right, also known as “tag-along” right or “take me along” right. A Co-Sale applies when an existing preferred stockholder in a privately-held company has received an offer from a potential buyer (known as a “third party”) to buy its stock. The Co-sale right enables existing stockholders to sell their stock alongside the selling stockholder in this transaction.
Let’s explore the mechanics of a Co-Sale right.