Deal Structure

Rollover Equity

When the seller keeps part of their ownership in the business after the sale, hoping it grows and becomes worth more later. Why it matters: Rollover equity lets a seller participate in future upside, but it also means taking risk alongside the new owner.

Related terms

Seller

The current business owner who wants to sell the business. Why it matters: The seller is not just handing over ownership; they are also proving the business, answering diligence requests, negotiating risk allocation, and often helping with transition.

More from Deal Structure

Asset Sale Cash at Close Cash-Free Debt-Free Contingent Payment Debt-Like Items Earnout Escrow Holdback Majority Sale Membership Interest Sale Minority Rollover Minority Sale

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