LOI verbiage for equity roll-over?
Wondering if anyone could share an example of an LOI or verbiage in an LOI where the seller rolls over the equityredacted%) in an asset sale. How is this accomplished structurally and contractually?
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by a searcher
from Massachusetts Institute of Technology - MIT Sloan School of Management
in Los Angeles, CA, USA
in Los Angeles, CA, USA
5yrs ago
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by an intermediary
5yrs ago
from The University of Chicago in Chicago, IL, USA
from The University of Chicago in Chicago, IL, USA
Rollover equity is pari passu with buyer's equity. I get calls from many brokers and buyers (and few times from sellers who tried to sell directly) on this point when the deal falls apart. In all cases buyer knew what they were doing. Sellers did not understand..
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by an investor
5yrs ago
from The University of Chicago in Chicago, IL, USA
from The University of Chicago in Chicago, IL, USA
The roll is typically pari passu as it pertains to economics. From the perspective of shareholder / member rights under the operating agreement - the rolled sellers are second class citizens, no different than all of the junior equity providers (hard cash or sweat equity).
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