Liquidity event

A liquidity event is the moment part or all of an illiquid ownership stake converts to cash — selling the company, a partner buyout, a large one-time distribution. It is the pivot of the U-turn pattern: before it, wealth-builders are concentrated; after it, they diversify to preserve. Planning for one someday (clean books, transferable systems, revenue not welded to the founder) raises a business’s value even if you never sell.

First used in: 0.3 · The three engines and the ladder