Deemed liquidation event

In accounting, deemed liquidation event means a merger, sale of control or sale of substantially all assets that the charter treats as a liquidation, so the liquidation preferenceEquity & financingLiquidation preferenceA preferred stockholder's right to be paid a stated amount — usually 1× the original issue price plus declared but unpaid dividends — before common stockholders in a sale or liquidation. Non-participating preferred takes the greater of that or its as-converted share; participating preferred takes both applies to the sale proceeds.