{"id":1133,"date":"2025-09-26T12:08:15","date_gmt":"2025-09-26T10:08:15","guid":{"rendered":"https:\/\/lextelier.com\/?p=1133"},"modified":"2025-10-07T09:49:45","modified_gmt":"2025-10-07T07:49:45","slug":"anti-embarrassment-clause-how-to-protect-yourself-when-selling-shares-or-assets","status":"publish","type":"post","link":"https:\/\/lextelier.com\/en\/anti-embarrassment-clause-how-to-protect-yourself-when-selling-shares-or-assets\/","title":{"rendered":"Anti-Embarrassment Clause: how to protect yourself when selling shares or assets"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">What is the anti-embarrassment clause?<\/h2>\n\n<p class=\"wp-block-paragraph\">Imagine selling part of your business, only to see the buyer resell it for double shortly after. Frustrating. The <strong>anti-embarrassment clause<\/strong> prevents that.<\/p>\n\n<p class=\"wp-block-paragraph\">It is a legal mechanism that protects the seller in transactions involving the sale of shares, stock, or assets. If the buyer resells at a much higher price within an agreed-upon period, the seller receives compensation.<\/p>\n\n<h2 class=\"wp-block-heading\">How does it work?<\/h2>\n\n<p class=\"wp-block-paragraph\">It usually sets a <strong>12-24 month<\/strong> period. If the buyer resells at a higher price, the seller receives:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><ul>&#13;\n \t<li>A percentage (often <strong>10% to 50%<\/strong>) of the profit.<\/li>&#13;\n<\/ul><\/li>\n\n\n\n<li><ul>&#13;\n \t<li>A <strong>minimum threshold<\/strong> for activation.<\/li>&#13;\n<\/ul><\/li>\n\n\n\n<li><ul>&#13;\n \t<li><strong>Tiered systems<\/strong> increasing with the gain.<\/li>&#13;\n<\/ul><\/li>\n<\/ul>\n\n<h3 class=\"wp-block-heading\">Real example: Telef\u00f3nica and American Tower<\/h3>\n\n<p class=\"wp-block-paragraph\">In 2021, <strong>Telef\u00f3nica<\/strong> negotiated this clause when selling assets to <strong>American Tower<\/strong>. If resold within two years at a higher price, Telef\u00f3nica would be compensated.<\/p>\n\n<p class=\"wp-block-paragraph\">This example shows how the anti-embarrassment clause is particularly useful in transactions where the value of the assets <strong>can increase rapidly.<\/strong><\/p>\n\n<h2 class=\"wp-block-heading\">When is it useful?<\/h2>\n\n<p class=\"wp-block-paragraph\">It is recommended in sale and purchase transactions of:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Startups with high growth potential.<\/li>\n\n\n\n<li>Assets likely to appreciate quickly.<\/li>\n\n\n\n<li>Fast-moving industries like tech and telecoms.<\/li>\n<\/ul>\n\n<h2 class=\"wp-block-heading\">Why it matters<\/h2>\n\n<p class=\"wp-block-paragraph\">If you are considering selling shares in your company or strategic assets, including an anti-embarrassment clause can be key to not missing out on unexpected gains.<\/p>\n\n<p class=\"wp-block-paragraph\">At <strong>Lextelier<\/strong>, we have a team specialized in corporate and commercial law that can advise you in negotiating and drafting these clauses to your advantage.<\/p>\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the anti-embarrassment clause? Imagine selling part of your business, only to see the buyer resell it for double shortly after. Frustrating. The anti-embarrassment clause prevents that. It is a legal mechanism that protects the seller in transactions involving the sale of shares, stock, or assets. If the buyer resells at a much higher [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1127,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[59,60,61,62,58],"class_list":["post-1133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-anti-embarrassment-clause","tag-assets-resale","tag-business-sales","tag-ma-transactions","tag-seller-protection"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Anti-Embarrassment Clause: how to protect yourself when selling shares or assets - Lextelier<\/title>\n<meta name=\"description\" content=\"Protect your sale with the anti-embarrassment clause and secure compensation if the buyer resells at a higher price.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lextelier.com\/en\/anti-embarrassment-clause-how-to-protect-yourself-when-selling-shares-or-assets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Anti-Embarrassment Clause: how to protect yourself when selling shares or assets - 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