< Back to Glossary

Right of First Refusal (ROFR)

A right of first refusal (ROFR) is a legal term that refers to the right of a person or entity to have the first opportunity to purchase or acquire something before it is offered to others. In the context of business and finance, a ROFR is often included in contracts or agreements as a means of protecting the interests of one party in the event that the other party decides to sell or transfer ownership of an asset or business.

For example, if a shareholder of a company has a ROFR, they have the right to purchase the shares of the company that are being offered for sale before they are offered to anyone else. A ROFR can be a valuable tool for protecting the interests of shareholders or other stakeholders in a business.

Revolutionize Your Accounting with Finanshels
Book Free Consultation
Bader Al Kazemiquote
"If you ever do any financial modeling/forecasting, I seriously can't recommend Finanshels enough. they are a dependable team of professionals who work hard to deliver results."
Bader Al Kazemi
Founder, Optimize App
Restaurants Accounting
The Restaurant Business An Accounting Guide

The Restaurant Business An Accounting Guide

Get Free Guide