With liquidity playing a critical role in helping employees unlock the value of their equity compensation, this research delves into how private companies are thinking about and preparing for liquidity events to meet employee and investor expectations. Commissioned by Morgan Stanley at Work and conducted by 8 Acre Perspective, the survey gathered insights from 150 senior leaders at venture-backed private firms, all of which had reached Series B funding or beyond.

The study aimed to understand how private companies use liquidity as a strategic tool to support talent, fundraising, and long-term planning. Participants included decision-makers involved in managing the day-to-day operations of their company’s equity compensation plan and/or those responsible for the selection of their company’s plan provider/platform.

Key findings include:

• Liquidity is a talent strategy—99% agree it helps attract and retain talent, and over half of companies planning a capital raise also plan a liquidity event alongside it.
• Tender offers are most common among private liquidity events, with IPOs as the preferred long-term goal for 45% of companies.
• Preparation gaps exist—while many are considering liquidity events in the next 24 months, one-third feel unprepared, especially those considering tender offers.
• Comprehensive readiness matters—companies cite the importance of assembling the right advisors, preparing financials, and creating clear communication plans.

The findings underscore a shift: equity compensation is no longer just about ownership—it’s about providing meaningful value through liquidity, with careful planning critical to success.

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