Selling your business is tough, and you must have a perfect strategy. Many business owners prepare for several years before selling to ensure they do it correctly. Indeed, a rollover equity Connecticut lawyer can help you navigate tough financial decisions. Some of the challenging decisions you need to make when selling your business include finding the perfect deal team, finding the right buyer, and thinking about how much rollover equity you would like to invest. With all these tough decisions, a rollover equity Connecticut lawyer can help you. Together you will be able to build the perfect strategy so that your sale is a success on all levels.
So what is rollover equity? It represents the amount of money that you, as a seller, decide to invest into the company’s future equity. This amount is known as a “rollover.” Private equity firms represent a very active part of buyers in today’s financial market. These firms partner up with the seller, and then the private equity firm’s management team will run the business from there on. Generally, the timeframe for which they will manage the interaction is between 4 to 7 years. A private equity firm expects at least a 20% stake, but this does not mean that you need to “give up” 20% of the proceeds. Talk to a rollover equity lawyer to better understand your available options and to discuss in depth all the aspects of rollover equity when deciding to sell your business.
Choosing the right buyer for your company is perhaps the most complex and vital decision. The sales process is not only about making a transaction where you cash in and walk away. Most business sales will include an employment agreement for up to 5 years, and most will need rollover equity. It is essential to consider the bigger picture when selling your company, not only to focus on the sales price and profits. You do not want to regret your decision later on.