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published on 22 November 2023 | reading time approx. 3 minutes
There are many reasons why sellers may want to participate in their sold company. For the buyer, these can include the desire to reduce the level of financing required for the acquisition or the intention to create incentives for the seller to support the company also post acquisition. For the seller, this structure can be attractive as it enables him to continue to participate in the success of the company or to reduce the tax expense on the sale. The equity rollover is often also a signal sent out to investors or customers to strengthen their confidence in the company by showing that the seller continues to believe in the company's potential. In this article, we will explain the most important aspects of equity rollover in a company sales transaction.
M&A Dialogue
Christian Speckert
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Transaction advisory | Mergers & Acquisitions