ROFO means ‘Right of First Offer’.

The right given to shareholders in a company to purchase shares being sold by other shareholders in the same company.

For instance, if a founder wishes to transfer their shares, other shareholders (founders and or investors) will have a right to first offer to purchase all or part of such shares.

However, the selling shareholder can still transfer such shares to a third party, if the price quoted by them is higher than the price offered by current shareholders.