Seller rollover equity and earnout

July 14, 2023
by a searcher from University of Toronto - Joseph L. Rotman School of Management in Toronto, ON, Canada
I am in the process of submitting an IOI for a transaction in which the seller has a set below clearing price. I will like to have the seller rollover some of the proceeds as equity and I plan to add an earnout as an incentive. I would like to get the view of the search fund community if this is a reasonable structure. Please share your view. Thanks
from Vanderbilt University in Chicago, IL, USA