Seller rollover equity and earnout

searcher profile

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

0
1
166
Replies
1
commentor profile
Reply by an intermediary
from Vanderbilt University in Chicago, IL, USA
This is a fine structure, but I suggest you have a short transition period as I suspect you'll want to take things over sooner rather than later.
Join the discussion