Selling your shares in the private secondary market is more completed than selling shares in the public market. Unlike logging in to your brokerage account to immediately sell your shares at the market price, the private secondary market functions with less liquidity and greater variability in timing. So, if you’re a private company shareholder hoping to cash in on your equity, it’s natural to want to know what happens if a buyer for your shares is not found immediately.
After you post a listing to sell shares on the P2P Shares platform, what can you do if a buyer is not found right away? While frustration may beckon, seasoned private market operators know that patience and strategy are key to an eventual close. Here’s a look at what your options are and how to position yourself for potential future opportunities if a buyer is not found immediately.
Common reasons for delayed share sales
Share sale delays are not uncommon in a market as dynamic and nuanced as the private market. Sellers often encounter one or more of the following:
1. Pricing mismatches
Pricing mismatches are one of the most common reasons for a delay in closing a share sale. Sellers may set the price of their shares according to previous company valuations and prior share pricing, as well as recently closed transactions, while buyers may be focused on the most current market conditions, company performance prospects and opportunities to get the best possible deal (at the lowest price). If the two parties—the buyer and the seller—cannot agree on the price, the transaction will not be completed.
This dynamic is reflected in a concept called the bid-ask spread. A bid-ask spread shows the difference between prices that buyers and sellers are willing to trade securities. The bid price will typically be lower than the ask price. For a trade to occur, it must happen at the bid price, ask price or somewhere in between those two prices.
If there’s a wide bid-ask spread, that generally indicates a lack of liquidity and/or that investors disagree on price. A tight spread generally indicates that a stock has higher liquidity and there is greater alignment on price. Although these are general indications, there may be additional factors impacting the spread of a given share.
2. Limited demand for specific shares
Not all private company stocks, nor types of stock, receive equal attention. For example, certain institutional buyers may find preferred stock more appealing than common stock because of their liquidation preferences, dividend rights and other protective provisions.
A company’s industry, technology, potential profit trajectory and level of maturity can also impact buying interest.
3. Company-imposed transfer restrictions
Share transfer restrictions are often included in the bylaws and shareholder agreements of privately held companies. These restrictions generally include rights of first refusal (ROFRs), lockup periods or board consent requirements. Although P2P Shares offers descriptive guidance about such terms on its website, these limitations can cause delays or completely prevent transactions from moving forward.
What sellers can do while waiting for a buyer
While waiting for a buyer to accept an ask, sellers have plenty of options. The P2P Shares platform offers multiple opportunities to adjust your position and enhance your share visibility to potential buyers.
1. Adjust pricing or terms
Sellers can update the terms of their share ask at any time . Adjusting the share price, minimum quantity or other deal parameters can bring your ask closer to buyer expectations. Sometimes, even minor modifications can expand the pool of interested parties, especially when market sentiment shifts or buyer interest picks up.
2. Stay informed with market data
You can use the watchlist tool to track target companies and receive email alerts on relevant developments. If you have a P2P Shares account, you can further review changes in the active market and data to compare interest levels, valuations and historical execution trends. Staying apprised of relevant data can help you make more informed decisions and recalibrate pricing expectations, as needed.
Exploring alternative liquidity options
If a one-to-one buyer match isn’t materializing quickly enough, sellers may consider alternative pathways to liquidity that P2P Shares can help facilitate.
1. Partial execution of share sales
In certain situations, P2P Shares has the capability to fulfill a partial order.For example, if you have 5,000 shares listed and a potential buyer is only looking to purchase 2,000, it is possible to make a transaction for the partial amount. By doing this, you can liquidate some of your volume and still keep the rest of your ask active.
2. Fund investment sale options
P2P Shares’s liquidity solutions go beyond traditional buyer-seller matchmaking. P2P Shares also supports single-issuer Special Purpose Vehicles (SPVs) and fund unit offerings—structures that enable investors to gain exposure to a specific company via a pooled investment vehicle. These vehicles can present opportunities for sellers to participate in broader liquidity strategies.
3. Tender offers / company-sponsored liquidity events
The private company that you own shares in can sometimes organize a structured liquidity event, such as a tender offer. If you’re a shareholder in a company planning such an event, P2P Shares can potentially help facilitate your participation in the event and guide you through the process.
When to reassess asking price
Knowing when to pivot your share sell efforts can be just as critical as knowing when to invest. If your ask order has been sitting without significant buyer activity or if market dynamics have changed substantially, it may be time to reassess your approach. Signals that it may be time to modify or withdraw your ask can include:
- Your pricing is significantly higher than recent benchmarks or executed trades.
- Your company’s perceived value or revenue trajectory has decreased significantly.
- You have observed a significant amount of unsuccessful transactions for your shares or a continual disinterest for more than 30 days.
If your sell order is not refreshed with a new ask price or change of terms, they will automatically expire after 30 days. P2P Shares designed this policy to maintain the accuracy and quality of the P2P Shares order book, ensuring that buyers have access to current and actionable opportunities. Sellers can access their personal account dashboard to make any needed updates, adjustments or withdrawals to their orders.
To cancel an offer to sell
To cancel an sell order that you made, you should:
- Navigate to your Active Listings dashboard.
- Select the relevant order.
- Click “Withdraw” and confirm.
To update your order
To update an existing order:
- Navigate to the same listing.
- Click “Edit” and adjust your price, volume or other details
- Then, “Save” and resubmit for visibility.
Final thoughts
Navigating share sales in the private market requires a unique blend of timing, flexibility and strategic foresight. If a buyer for your shares doesn’t appear right away, it’s not necessarily a dead end—it’s a signal to reassess, refine and remain engaged. Whether you choose to adjust your ask, explore partial sales or consider alternative liquidity options, P2P Shares offers you the tools and data to stay proactive in your path toward liquidity. In an evolving private market landscape, patience paired with the right strategy can often be the key to unlocking results you seek.