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Key Points in Rollover Equity

What is rollover equity? This is when a seller will decide to reinvest a given portion of the proceeds from a sale into the equity of the acquisition company. The proceeds portion that the seller decides to reinvest can be as little as 5% or as high as 49% . Β In case you have any questions or concerns regarding equity rollover legal aspects, a rollover equity Connecticut lawyer can always help.

As a rule of thumb, buyers always wanted the sellers to maintain the equity in the recently formed company. This happens because buyers needed a sort of assurance that the seller still has the belief that the company will do well in the future. Buyers always looked skeptically on 100% sales of a company, especially if the management team is not top of the class.

What are the main benefits that sellers should consider when they review a proposal of accepting rollover equity? A rollover equity Connecticut lawyer will always help you better understand all the legal aspects pertaining to equity rollover and they highlight the following:

  • By accepting a rollover equity proposal, the transaction will be closed and thus the seller can diversify his activities of wealth planning
  • By accepting a rollover equity proposal, the seller can have his say, even if partially, in the future value & growth of the business (at the point the buyer will exit its investment).

In case you are struggling to understand the legal aspects of rollover equity, you should reach out to the team of attorneys at Martin LLP. They have a powerful educational background and a very vast professional experience. They represent clients in a highly personalized manner in litigation, corporate and real estate legal matters. Do not hesitate to contact the experts, because you can save precious resources such as time and money, especially when it comes to financial decisions. You will get all the help and assistance you need. Let the experts find the best course of action for your individual problem, and you can have the time to focus on what really matters.

Hillary

Hillary

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