13 Sep Overview of Rolling Equity in an M&A Transaction for a Seller
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We’re talking about something we run into oftentimes in a deal structure, called rolling equity. We’re diving into what it means for a buyer and seller and how it can create a win win if both parties are onboard for selling-in.d
Benefits of Rolling Equity
a. Allows seller to retain some ownership and control of the company post-sale
b. Opportunity to potentially receive additional compensation from the buyer
Potential Risks of Rolling Equity
a. Risk of reduced sale proceeds if the company does not reach performance milestones
b. Potentially complex tax implications for seller